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JUNE 2014 CORPORATE PRESENTATION – Petrobras

Petrobras · Jun 10, 2014 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 1
    PETROBRAS At a Glance June 2014 __
  2. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 2
    PETROBRAS TODAY Fully integrated across the hydrocarbon chain Exploration and Downstream Distribution Gas and Power International Biofuels Production 12 refineries (Brazil) 7,641 service stations 9,190 km of gas pipelines in 24…
  3. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 3
    COMPETITIVE ADVANTAGES Uniquely positioned to integrate upstream and downstream operations Exploration & Production Leader in deep-water production, with access to abundant oil reserves New exploratory frontier, adjacent to…
  4. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 4
    Petrobras: Oil and NGL Production in Brazil Petrobras Production in the 1Q14 was 1,922 thousand bpd, in line with projections 2013: 1,931 th. bpd Th. bpd 1Q13 2Q13 3Q13 4Q13 1Q14 Average 1,910 Average 1,931 Average 1,924 Average…
  5. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 5
    2014-2018 BMP: PETROBRAS OIL AND NGL PRODUCTION CURVE IN BRAZIL New systems recently installed and under construction ensure future growth 9 Production Units 1st Oil Forecast 1st Oil Forecast Concluded 2014 - 2015 2016 - 2020 Lula…
  6. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 6
    Production Units Delivered, under Construction and under Bidding Additional Capacity Operated by Petrobras P-67 1,000 kbpd 300 kbpd 150 kbpd 1,000 kbpd 900 kbpd 1,050 kbpd P-73 TAD P-75 P-77 Cid. Mangaratiba P-67 Cid. Itagua…
  7. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 7
    HISTORICAL FPSO INSTALLATION Production growth correlated with installation of new capacity 2006-2010 2011-2015 Petrobras installed, on average, 5 platforms per year from 2006 to 2010. 2011/12: Inadequate installation of new capacity to…
  8. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 8
    DRILLING RIGS Needs now largely met, with increasing utilization for production development Drilling rigs in operation (N) (Greater than 2000 meters) PLSV Fleet Current Fleet 11 New Units Throughout 2014 +8 40 40 2016 +9 26 16…
  9. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 9
    Oil Production Existing Systems Program to Increase Operational Efficiency (PROEF) 58 th. Bpd Gain in the 1Q14 Total Expenditure of US 1,897 million by Feb/14. NPV of US 1,080 million by Feb/14 UO-BC Focus on recovering wells and…
  10. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 10
    NET INCOME / TOTAL BOE OF E&P BRAZIL AND ABROAD Further improvement expected with pre-salt production growth US 35,00 29,68 30,00 28,21 26,94 25,23 25,00 20,71 20,00 18,79 17,92 15,19 15,00 13,97 13,04 11,91 10,00…
  11. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 11
    E&P COMPARATIVE ADVANTAGE High cash flow relative to E&P capex, even with higher exploratory spending 35.000 30.000 3.124 990 25.000 617 2.799 Libra 2.777 3.909 1.353 11.542 609 6.640 7.410 3.756 US Million 20.000 4.272…
  12. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 12
    PRE-SALT Size Pre-Salt - Size ES 650 US GoM Blocks MG RJ Rio de Janeiro So Paulo SP SP PR Campos Basin Curitiba 7,000 km2 (1.7 million acres) Santos Basin Pre-Salt 15,000 km2 (3.7 million acres) SC 100 km…
  13. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 13
    PRE-SALT WHAT IS NEXT 14 14
  14. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 14
    PRE-SALT PRODUCTION IS A REALITY Exploration success, production, available resources all growing rapidly Pre-Salt (Santos and Campos Basin) Pre-Salt Average Production Average Wells Productivity (kbpd) 350 Campos Basin (kbpd) 301 30…
  15. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 15
    TRADE BALANCE Rapid demand growth in the last 5 years has led to a shift in the trade balance Diesel Sales 5,000 +24% 2,800 Gasoline Sales +65% 4,700 2,500 4,400 +24% Thousand m 2,200 4,100 +3% Thousand m 3,800 1,900…
  16. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 16
    OPERATION PERFORMANCE IN BRAZIL DOWNSTREAM Refining throughput, product output and sales, and costs Oil Products Output in Brazil (kbpd) Oil Products Sale in Brazil (kbpd) +6% +4% 1,997 2,124 2,350 2,422 Others 809 783 778 777…
  17. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 17
    COMPARISON OF GASOLINE AND DIESEL CONSUMER PRICES Brazilian prices above USA; taxes account for significant share of consumer price Gasoline Retail Prices Diesel Retail Prices 2013 Average 2013 Average Brazil USA Chile China Japan…
  18. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 18
    RNEST AND COMPERJ REFINERIES Rnest nearing physical and financial completion, Comperj more than 60% complete RNEST Physical Monitoring S-Curve Financial Monitoring S-Curve 110 20000 Start-up: 4th Quarter 100 IMPLEMENTION MILESTONES 1…
  19. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 19
    BRAZIL OIL PRODUCTION, REFINING, AND PRODUCTS DEMAND Over time, Brazil will be a net exporter of oil and self sufficient in refined products Million bpd PROMEGA Capacity Expansion of 195 kbpd RNEST RNEST Comperj Premium I…
  20. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 20
    Natural Gas Supply and Demand Increase in the thermoelectric market demand in 1Q14 relative to 4Q13 Despite the increase in domestic natural gas supply in 1Q14, there was a higher need to import natural gas and LNG to meet higher…
  21. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 21
    2014-18 Business and Management Plan Fundamentals PRIORITY CAPITAL PERFORMANCE DISCIPLINE Financiability Assumptions Investment Grade rating maintenance Management Priority for focused on Guarantee the expansion of oil and No…
  22. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 22
    E&P and Dowstream Share Evolution in the Business and Management Plan Portfolio of Projects for Financiability Evaluation E&P share in Petrobras investments has been increasing in the last five Business and Management Plan…
  23. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 23
    CAPEX Exploration & Production and Downstream Exploration & Production Downstream US Million US Million 30.000 18.000 16.000 25.000 14.000 20.000 12.000 10.000 15.000 8.000 10.000 6.000 4.000 5.000 2.000 0 0 2010…
  24. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 24
    2014-2018 BMP Investments: US 220.6 Billion Projects Under Implementation, Bidding Process and Evaluation Portfolio of Projects Portfolio of Projects Total Investments Under Implementation + Under Bidding Process Under Evaluation US…
  25. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 25
    Petrobras Investments in Exploration and Production: US 153.9 billion Total E&P Production Development + Exploration US 153.9 bilhes US 135.9 billion 18,0 23,4 (12%) (15%) 53,9 (40%) 82,0 (60%) 112,5 (73%) Pre-Salt…
  26. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 26
    Petrobras Investments: US 58.5 billion Downstream Gas, Energy and Gas-Chemical International 0,4 0,3 0,3 Downstream 1% 1% 1% 1,4 Projects Under Implementation Projects Under Bidding Process US 38.7 billion 3,3 9% 4% RNEST…
  27. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 27
    2014-2018 BMP: FINANCIAL PLANNING ASSUMPTIONS Financing analysis only incorporates projects under Implementation + Bidding = US 206.8 Billion No equity issuance Investment grade maintenance Main Assumptions for Cash Flow Generation…
  28. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 28
    2014-2018 BMP: OPERATING CASH FLOW AND FUNDING NEEDS 261.7 261.7 Additional funding needs will be funded exclusively through new 60,5 54,9 debt. No equity issuance is envisaged 9,9 Free cash flow, before dividends, from 2015 on.…
  29. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 29
    2014-2018 BMP: Leverage and Net Debt/EBITDA Base Case USD 206.8 investment, FX R 2.23 in 2014, R 1.92 in the long term 50% Leverage Petrobras Gross and Net Debt 40% 30% US billion 140 20% 10% 120 0% 100 2014 2015 2016 2017 2018…
  30. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 30
    Investment and FX Rate Sensitivity: USD 175.9 investment, FX R 2.44 in 2014, R 2.56 in 2015, R 2.59 long term* 50% Leverage 40% Reference FX rate Petrobras Gross and Net Debt 30% US billion 140 20% 10% 120 0% 100 2014 2015 2016…
  31. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 31
    Dividend Policy Petrobras policy is to pay a minimum of 25% of adjusted net income to each class of shares Petrobras By-Laws Consistent with Brazilian Corporate Law According to Brazilian Corporate Law, companies with two classes of…
  32. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 32
    Financial Ratios 1Q14 issuances increased our cash position to R 78.5 billion R Billion 12/31/13 03/31/14 Market Access Short-term Debt 18.8 21.8 In 1Q14 there were two bonds issuances: Long-term Debt 249.0 286.3 - January/14 Total…
  33. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 33
    EBITDA Price increases contributed to higher cash flow, but additional adjustments still needed Adjusted EBITDA (US bn)* Adjusted EBITDA Breakdown per Segment (US bn)** 37,3 33,7 3,0 1,3 3,2 29,4 3,6 2,0 1,6 27,6 3,5 1,5 2,1…
  34. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 34
    CAPEX AND CASH FLOW Free cash flow turns positive with completion of downstream projects Capex vs. Operating Cash Flow US MM 48,097 Approx. 50.000 42,949 42,421 41 billion 40.000 30.000 26,289 20.000 10.000 0 2013 OCF…
  35. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 35
    COSTS Stable oil price, weaker Real, and cost controls have stabilized costs (ex. imported products) FX Rate (BRL/USD) 2.00 1.76 1.67 1.96 2.16 % - -12% -5% 17% 10% Brent (USD) 61.51 79.47 111.27 111.58 108.66 % - 29% 40% 0% -3%…
  36. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 36
    Voluntary Separation Incentive Plan - PIDV 2014 Commitment towards the increase of efficiency, productivity and capital discipline Number of employees enrolled: 8,298 12% of the companys total workforce* and 15% of the expected labor…
  37. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 37
    PETROBRAS RATINGS Consolidated investment grade position, supported by the sovereign rating Petrobras Rating: Baa1 / Brazil: Baa2 (1 notch below PB) We see Petrobrass leverage to be nearing peak levels in 2013 and 2014, significantly…
  38. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 38
    TARGETS FOR 2014 Higher oil and oil products production, operational efficiency and cost optimization will drive 2014 results Oil Production (kbpd) PROEF Oil Products Output (kbpd) (Operational Efficiency %) +1% 7.5% +/- 1p.p. 2,148…
  39. JUNE 2014 CORPORATE PRESENTATION – Petrobras – slide 39
    Information Investor Relations +55 21 3224-1510 petroinvestpetrobras.com.br www.petrobras.com.br/ir __

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