Petrobras Reviews Its 2019 Oil Hedging Position

August 7, 2019

Petróleo Brasileiro S.A. – Petrobras, following up on the release dated 03/22/2019, reports that it carried out a full sale operation of its oil hedge position, which was intended to partially protect the company’s operating cash flow in low price scenarios. Therefore, the company has negotiated all its put options referenced to the average Brent oil prices from April to December 2019. The options settlement was due to the significant decrease in uncertainties related to the cash flow of the Business and Management Plan for 2019, with the revision of capex budget from US$ 16 billion to a range of US$ 10 to US$ 11 billion, cash inflow of US$ 12.8 billion due to divestment projects and the start-up of a broad cost reduction program.

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