PETROBRAS FIRST QUARTER 2018 CONSOLIDATED RESULTS

Rio de Janeiro, May 08, 2018 – Consolidated interim financial information audited by independent auditors in accordance with International Financial Reporting Standards (IFRS).

Key Highlights

Net Income R$ 6.961 billion

Production 2,680 thousand boed

EBITDA R$ 25,669 million

Result

Petrobras reported a net income of R $ 6,961 million in 1Q-2018, 56% higher than the first quarter of the previous year, determined by:

Brent’s share price increase, which resulted in higher margins in oil exports;

Higher profit from derivatives sales, as a consequence of the implemented price policy;

Higher margins and volumes in the sale of natural gas;

Gain of R $ 3,223 million with sale of assets of Lapa, Iara and Carcará;

Lower expenditures on equipment idleness; and

Reduction of general and administrative expenses.

As a result of the net income for the quarter and the new Shareholders Compensation Policy, taking into account the deleveraging target of the company, the advance of Interest on Own Capital was approved, in the amount of R $ 0.05 per share, cash flow * remained positive for the second consecutive quarter, reaching R$ 12,993 million in 1Q-2018, 3% less than the first quarter of the previous year, mainly due to the payment of the first tranche of the agreement Class Action and the premium for contracting put options to protect the price of part of the oil production.

Net Debt / Adjusted EBITDA

Gross indebtedness decreased from R $ 361,483 million in December 2017 to R $ 340,979 million and net debt from R $ 280,752 million to R $ 270,712 million. In US dollars, net debt decreased from US $ 84.871 Billion to US $ 81.447 Billion, representing a reduction of 4%. In addition, debt management made it possible to increase the average term from 8.62 years to 9.26 years, with an increase in the average financing rate from 6.1% to 6.2%. Adjusted EBITDA * increased by 2% in increase to R $ 25.669 billion due to increased sales margins and the Adjusted EBITDA margin was 34%. The net debt to LTM Adjusted EBITDA * ratio decreased to 3.52 in March 2018 compared to to 3.67 in December 2017. Leverage * decreased from 51% to 49% in this period. Excluding the provision for the Class Action agreement, the company would present the net debt / LTM Adjusted EBITDA ratio of 3, 07.

Operational highlights

Petrobras’ total oil and natural gas production in 1Q-2018 was 2,680 thousand barrels of oil equivalent per day (boed), of which 2,582 thousand were boed in Brazil, 4% lower than in 2017, mainly reflecting scheduled shutdowns and the divestment in Lapa. Derivatives production in Brazil fell 7%, while domestic sales decreased by 9% year-on-year, totaling 1,679 thousand barrels per day (bpd) and 1,768 thousand bpd, respectively, due to the increase in third party imports and loss of market share from gasoline to ethanol. In relation to 4Q-2017, gasoline and diesel sales decreased due to lower demand in the domestic market, although there was a recovery of market share in diesel, resulting from price adjustments implemented at the end of 2017. For natural gas, there was a 7% increase in sales volume compared to 1Q-2017. The company maintained its net exporter position, with a balance of 507 thousand bpd in 1Q-2018 (vs. 489 thousand bpd in 1Q-2017), due to the 38% reduction in imports.

Read financial report  RMF-1T18-R$-Ingles

 

 

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