Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) Q1 2023 Earnings Convention Name Could 12, 2023 11:00 AM ET
Firm Members
Carla Albano – Investor Relations
Jean Paul Prates – CEO
Sergio Caetano Leite – Chief Monetary Officer & Investor Relations Officer
Mauricio Tolmasquim – Chief Power Transition & Sustainability Officer
Carlos Travassos – Chief Engineering, Expertise & Innovation Officer
William França – Chief Industrial Processes & Product Officer
Claudio Schlosser – Chief Logistics, Commercialization & Markets Officer
Mario Spinelli – Chief Governance & Compliance Officer
Anna Paula Zettel – Upstream Government Supervisor
Clarice Coppetti – Chief Company Affairs Officer
Carla Albano
Hello. Good afternoon, everybody. Welcome to Petrobras Webcast with Analysts and Buyers concerning the First Quarter 2023 Outcomes. It is nice to have you ever be a part of us in the present day. We might like to tell you that each one contributors will comply with the transmission by Web as listeners. After an introduction, a Q&A session will start. You’ll be able to ship us questions by e-mail at [email protected].
At the moment, we’ve with us Anna Paula Zettel, Upstream Government Supervisor representing the Chief Exploration and Manufacturing Officer, Joelson Mendes; Carlos Travassos, Chief Engineering, Expertise & Innovation Officer; Clarice Coppetti, Chief Company Affairs Officer; Claudio Schlosser, Chief Logistics, Commercialization & Markets Officer; Mario Spinelli, Chief Governance & Compliance Officer; Mauricio Tolmasquim, Chief Power Transition & Sustainability Officer; Sergio Caetano Leite, Chief Monetary Officer & Investor Relations Officer; and William França, Chief Industrial Processes & Product Officer.
To start, we’ll watch a message from our CEO, Jean Paul Prates.
Jean Paul Prates
Expensive traders, as we open this occasion to debate our outcomes, I imagine it’s of the utmost significance to speak about the way forward for Petrobras and the views opened up by one more quarter of strong operational and monetary efficiency, the primary underneath this new administration workforce. In these first 100 days, we centered our efforts on reorganizing the corporate construction, getting ready Petrobras for the long run, particularly to steer the simply power transition.
We proceed to achieve manufacturing data within the pre-salt, and to extend the effectivity of our refineries. Our working money era stays constant and our debt reached the bottom stage since 2010. We now have strong fundamentals, which underpin our plan to diversify our investments to strengthen Petrobras as an built-in, sturdy and lengthy dwelling power firm. We’ll at all times pursue returns on investments and reductions in the price of capital, maximizing the corporate’s worth and in search of to develop the Brazilian market with sustainability.
Complete consideration to folks is our nonnegotiable precedence, as a result of solely a talented and numerous technical employees will enable us to satisfy the dynamic calls for of the market, particularly the power transition. The funding in worthwhile exploration and manufacturing belongings and in adjusting the refining services to the Brazilian markets calls for our pure actions to make sure the power provide that society wants.
We’ll proceed our efforts to decarbonize our manufacturing processes and to develop greener merchandise, which we perceive to be the one method trying ahead for the oil and fuel business, decreasing its emissions and consolidating clear power options. In actual fact, we’re satisfied that Brazil and Petrobras have all of the situations to be world leaders in a good power transition with out ceasing to be an oil energy, establishing partnerships with different corporations and making the most of the completely different vocations and potentialities of all Brazil’s areas. We’ll construct this route alongside our companions. That is our path going ahead. We make choices at all times reconciling our social operate and respect for our governance, honoring the belief positioned in our firm by our shareholders. That is my biggest dedication, in addition to that of all the Government Board, which I signify. Thanks very a lot to all of you.
Carla Albano
Thanks. Now I might wish to move the ground to Petrobras CFO, Sergio Caetano Leite. That may start our webcast shows of the primary quarter 2023 outcomes. Please Sergio, go forward.
Sergio Caetano Leite
Howdy, everybody. Good morning. I am very joyful to be right here reviewing in the present day my first quarter outcomes webcast, and even happier to speak concerning the vital and strong efficiency that Petrobras delivered within the first quarter of 2023. We had very robust quarter from an operational and monetary perspective and I’ll take a second to focus on a number of vital deliveries. First, from an operational angle, pre-salt manufacturing set a brand new month-to-month document in February 2023, and a quarterly document, reaching 77% of our complete manufacturing.
In February, we additionally had a month-to-month manufacturing document on the FPSO Guanabara within the Mero subject whose common oil manufacturing reached 179,000 barrels per day. We made the primary injection of fuel on the P-71 with persevering with its ramp up within the Itapu subject in Santos Basin pre-salt.
The manufacturing of diesel gasoline and jet gasoline within the first quarter of 2023 reached 67% of complete manufacturing, 1 proportion level greater than the primary quarter of 2022. We additionally set manufacturing data for 10 PPM diesel at REPAR and REGAP refineries in January and the REPLAN refinery in March. We superior in growth of extra sustainable and environment friendly merchandise with the certification of Diesel R on the REPAR. The launch of latest premier gasoline, the unique commercialization of gasoline oil with a most of 1% sulfur content material within the home market and with the start of commerce of Extremely Low Sulfur Marine Fuel Oil.
Right here it is vital level out that we’ve not too long ago undergone the group adjustment to arrange the corporate for the long run by creating the power transition and sustainability government possibility. Any match we supply out the stay procurement to renew the works of the pure fuel processing wants of the built-in mission Route 3 within the GASLUB cluster in Itaboraí, which is strategic for the brand new pure fuel circulation from the Santos Basin.
Transfer over the financials, I want to spotlight our EBITDA which reached round $14 billion, a really sturdy quantity for fourth highest Petrobras historical past. We had constant working money era with money circulation from our operations reaching the strong mark of $10.3 billion. The online debt EBITDA ratio reached its greatest mark since 2010. It is also vital to focus on that we had the bottom stage of gross debt since 2010, reaching $53.3 billion. Return on capital employed reached 15.7%, the identical stage as in first quarter of 2022. And our internet earnings reached $7.3 billion, and the free money circulation was round $8 billion, that are very vital ranges.
We proceed with dedication to generate worth and monetary sustainability by distributing outcomes to society. As will be seen in our fiscal report, within the first quarter of 2023, we paid R$63 billion in tax and authorities take, we additionally paid $4.2 billion in dividends, bringing our money ranges to $15.8 billion.
By way of the exterior surroundings, within the quarter, we had 8% drop in Brent costs and the common trade charge went down 1% when in comparison with the fourth quarter of 2022.
Subsequent slide. As already talked about, we had very sturdy EBITDA. Recurring EBITDA within the first quarter of 2023 reached $14.3 billion, according to the primary quarter of 2022. Regardless of the 8% devaluation of Brent primarily defined by decrease exploration bills and authorized contingencies.
Subsequent slide. Delve into the outcomes by enterprise phase. In Exploration and Manufacturing, the affect of the Brent devaluation was partially offset by low bills and better productions, inflicting the phase’s EBITDA to say no 1% when in comparison with first quarter of 2022. Within the downstream phase, EBITDA was 15% decrease than the earlier quarter due primarily to the impact of stock turnover with discount of Brent between the quarters.
When take a look at the alternative value, the outcomes for the quarter grew 3% reflecting greater margins on oil merchandise, major gasoline, because of the appreciation of the worldwide margins. In Fuel and Energy EBITDA rose 16% because of the favorable situation and the actions taken to construct a industrial portfolio resilient to the enterprise dangers.
Subsequent slide. As talked about early, the outcomes generated by working actions and free money circulation reached very vital ranges. The extent of money circulation era, along with the influx of assets from divestments had been used to remunerate the shareholders, make investments, pay as you go debt and amortize the principal and curiosity through the interval and amortizing leasing liabilities.
Subsequent slide. And after we take a look at our debt place, we’ve a really snug debt profile when it comes to liquidity and monetary energy. On the finish of the primary quarter of 2023, gross debt reached $53.3 billion as already said, that is the lowest stage since 2010. Internet debt was $37.6 billion, a drop of 9.5% in comparison with yr finish 2022.
Our money place stays fairly sturdy, reaching $15.8 billion on the finish of the primary quarter. As well as, it is value noting that we’ve variable revolving credit score strains of $9 billion. We closed the quarter with a mean funding charge of 6.5% per yr in a mean maturity of 12 years.
Subsequent slide. In relation to portfolio administration, we’re reassessing the method through which no contracts had been signed. It is vital to emphasise that the initiatives which have already designed that are in present closing stage, shall be honored by the corporate. As much as April 2023, money inflows associated to those divestments totaled $2.1 billion.
Within the first quarter of 2023, internet earnings was $7.3 billion, in comparison with $8.2 billion within the fourth quarter of 2022. This result’s primarily defined by the Brent devaluation and decrease monetary outcomes, partially offset by the decrease operation bills. Within the addition, there was the next earnings tax expense, which was primarily because of the absence of tax credit score within the fourth quarter of 2022 due to the dividend distribution for fiscal yr 2022 as curiosity on fairness.
On this first quarter of 2023, tax and authorities take to federal, state and municipal governments amounted to R$63 billion signify the return to society of 54% of the corporate working money era.
I end right here my presentation. Please, we are able to transfer ahead.
Carla Albano
Thanks, Sergio. Now, I will move the ground to Chief Power Transition and Sustainability Officer, Mauricio Tolmasquim. Mauricio Tolmasquim, go forward.
Mauricio Tolmasquim
Hello, good afternoon. It is an awesome satisfaction that I am right here in the present day as the primary Chief Power Transition and Sustainability Officer in Petrobras’ historical past to current to the market the superb outcomes obtained off the primary quarter of ’23. Please subsequent slide.
As we are able to see within the graphs, we stay aligned with our sustainability commitments with carbon depth ranges beneath 2022. The carbon depth in our Exploration and Manufacturing operation reached 14.7 kilograms of CO2 by barrel within the first quarter of ’23, is the primary determine. This stage is decrease than that achieved in 2022 and that is the results of our steady effort to scale back emissions from our operations. We now have bolstered the competitiveness of pre-salt oilfields which signify an more and more related proportion of the corporate’s complete manufacturing.
Why that is vital? That is vital as a result of the preliminary depth from the pre-salt subject is decrease than the opposite fields. For instance, should you look Tupi and Búzios fields, each had emissions of 10.6 and 9.3 CO2 per barrel, respectively. So, these figures are effectively beneath the nationwide and worldwide emission depth. Once we look to the following graph, on the refining indicator, you’ll be able to see a steady discount in carbon depth software. This enchancment is related to elevated power effectivity by as an example, the discount of gases despatched to the torch and course of virtualization.
Lastly, look, the third graph, I want to spotlight the lower in carbon depth from thermal energy era. There are two explanations for this discount within the carbon depth. First, the development of the thermal energy crops itself; and second, the discount of the dispatch of thermal energy crops, decreasing the dispatch of the much less environment friendly crops.
Subsequent slide please. So now let’s have a look to absolutely the emissions. By way of absolute emissions, there’s additionally a very good efficiency. There was an vital discount of complete operational emissions between 2022 and the primary a part of ’23. The identical occurred concerning the operational emission from oil, fuel as you’ll be able to see within the different graph. What considerations the whole emission? There are two major explanations for the emission reductions: First, the development in our course of; and second, the discount of thermal energy crops’ dispatch.
The slide — first slide please. This primary slide, I want to spotlight this slide, three points associated to local weather and decarbonization. The primary level to be highlighted is expounded to the local weather complement. Within the interval, we launched the brand new editions of the local weather complement with details about progress made within the carbonization pathway, the carbon impartial program and different decarbonization initiatives. The doc particulars data concerning emissions efficiency in 2022 and the mission already applied, will be discover additionally on this report. It presents additionally firm’s technique, dangers and governance concerning the problem of local weather change. We element within the doc our actions to scale back methane emission, our place on simply transition and the technique to make use of carbon credit. I invite all to learn this doc.
The second level that I need to spotlight is that within the interval, we made some vital partnerships to leverage new enterprise and carbonization alternatives.
And eventually, the third level to focus on considerations our provide chain. We’re — I referenced sustainability by CDP indicator, our dedication to encourage good surroundings practices and local weather change mitigation measures when coping with our provide chain.
Lastly, the final slide please. Within the final slide, we’re going to give attention to the Fuel and Power phase. The efficiency of the interval — within the interval was fairly sturdy. It’s the results of actions to construct a industrial portfolio resilience to enterprise danger that explains this good efficiency. Petrobras continues working to satisfy its contractual commitments for the sake of fuel on this quarter. It is achieved 100% supply to reliability. Within the first quarter of 2023, the Petrobras pure fuel market remained on the identical stage of the primary a part of ’22. Nevertheless, in comparison with the primary quarter of ’22, there was a lower of 16 million cubic meters per day. Two components displaying this drop: The primary is the opening of the pure fuel advertising within the nation. And as consequence, the rise within the participation of order agent get used to — that produce fuel and use to promote it to Petrobras that are actually promoting to the market instantly. One other issue that specify this discount of the market was the decrease thermal consumption given the restoration of reservoir ranges. In April, the degrees of the reservoir ended at 88% at very excessive stage within the energy sector — Brazilian energy sector. The decrease thermoelectric dispatch partially displaying the superb results of this follow-up on this first quarter. Why that? As a result of the drop of thermoelectric dispatch want that much less LNG was vital on the time when the gasoline could be very costly within the worldwide market.
So, the decrease dispatch of thermal energy plant at this second the place the pure fuel worth could be very excessive on the planet, was superb for Petrobras end result. It value additionally mentioning concerning the connection, which within the long-term market of fuel distributor, industrial motion to resolve disputes that arose within the latest previous, the signing of a brand new contract with an extension of gross sales portfolio.
That was I needed to say now. Thanks very a lot.
Carla Albano
Thanks, Tolmasquim. Now, we’ll proceed with Carlos Travassos, Chief Engineering, Expertise & Innovation Officer to current the E&P outcomes.
Carlos Travassos
Thanks very a lot, Carla. Good afternoon, everybody. I am Carlos Travassos, Engineering, Expertise and Innovation Chief Officer. At the moment I’ll current each the outcomes of Exploration and Manufacturing and Engineering, Expertise and Innovation. Joelson Mendes was — underwent a minor surgical procedure and he won’t be able to be right here with us, he’s superb. And by subsequent week, he’s going to be again.
Properly, let’s begin with the following slide. So, you’ll be able to see right here that we’ve reached 2% development on the operative manufacturing as compared with the primary quarter ’22. We achieved 3.74 million barrels a day, what I imply by barrels, I’m speaking about equal brokers right here, sure. So we are able to see development evaluating with the final quarter of ’22 after which additionally 2.3% if we evaluate with the primary quarter of the final yr as effectively.
Should you have a look in oil and fuel and our oil manufacturing, once more, we had a development in contrast with the final quarter. This development was primarily attributable to ramp up of P-71 and for entry of eight wells in Campos Basin and in addition enchancment in our effectivity. Going to the best, should you have a look in pre-salt, our personal manufacturing. And we are able to see that rising of the share of pre-salt in our complete manufacturing. We achieved on this quarter 77% of pre-salt manufacturing as a share of our complete manufacturing.
Now we are able to go to the following please. And now we’re speaking about some achievements, vital achievements. Really we’ve damaged some data, we have damaged a month-to-month document 2.13 million barrels a day that was happening in February and truly a quarterly document with 2.05 million barrels. And should you have a look in particular person manufacturing as effectively, we’ve an incredible end result to Guanabara FPSO, 179,000 barrels a day, what means 100% effectivity that was achieved on February. The final time that we’ve any document was in November with Carioca. In order that signifies that we have simply damaged our document.
We will go to the following please. Now, let’s speak about prices. Sure, now I am exhibiting you a bit of bit about our lifting prices in Brazil. Simply to grasp this image, we’re segregating in three layers. Sure. So the yellow one is onshore and shallow waters, that may scale back our prices from 18.8 within the final quarter of final yr to 14.7. This majorly associated some portfolio actions that we’ve performed. After which we additionally had outcomes of lifting prices in deep water, principally in Campos Basin, however not solely Campos Basin, however principally there. When we’ve — right here you’ll be able to see a drop as effectively of the prices primarily because of the wells that we put in manufacturing. And of the pre-salt as effectively having a very good end result paving to ramp up of P-71, sure, that is so — these outcomes convey us a drop of the automobile lifting prices from 6.1 to five.5, sure.
Now exhibiting a bit of bit about complete value of oil manufacturing. Sure, so should you have a look within the final quarter of ’22, that was 38 and we’ve a discount of 11% on that value. So right here we embrace depreciation, depletion, amortization and the federal government take is taken into account right here and naturally the lifting prices, sure. In fact vital to focus on that right here we should embrace for them to have a view of complete prices. We aren’t included that numbers in these numbers. The investments is just not right here, sure, and the capital value is just not right here as effectively.
We will go to the following please. Oh, sure, now speaking about our exploration. We achieved discovery in 2021 and we’re — now we’ve began extension effectively actually at Aram block, Curaçao. Sure. So that is the primary — the very first thing that we’re doing the primary effectively, sure. We now have six extra to be performed and to declare as a industrial one.
Okay, I feel that is the final one for exploration manufacturing. Now I begin speaking about engineering, know-how and innovation, should you can go to the following please.
Okay. Right here we’ve an image of Anna Nery. Really this unit simply began manufacturing in Anna Nery, at Anna Nery to attach the second effectively, that unit. Reminding you, that’s a part of Marlim revitalization program, sure. The Marlim revitalization, should you can go to the following please. In Marlim revitalization we’re going to take away 9 items, sure, and going to switch by two items: Anna Nery and Anita Garibaldi. Anna Nery, we’ve began manufacturing. Like I mentioned Anita Garibaldi is we added in mooring at this second, sure. Really now should you have a look in our strategic plan, ’23-’27, sure. From these 18 items, we’ve 4 in last location P-71 that’s already in manufacturing, that we anticipated, Anna Nery now’s in manufacturing as effectively. And Anita Garibaldi, that’s in mooring course of. And we even have Almirante Barroso, that is able to begin manufacturing ready for authorization.
Coming again to the revitalization, that is a unbelievable program. And we intend to extend 20% in our manufacturing and scale back 6% of greenhouse fuel, sure. And this can be a progress — on a regular basis that we’re speaking about manufacturing methods, are used to indicate the items. However it’s vital to remind that we’ve a subsea working and a really laborious subsea working, particularly when speaking about revitalization, when we’ll construct 14 new wells and relocate six wells. So — and in these sorts of initiatives, we’ve a especial characteristic that we additionally must take away some strains right here and there that is required for us, synchronization and superb planning on doing.
Now we are able to go to the following please. Right here speaking about updating the start-up schedule for ’23-’27. I feel you all of you might be very accustomed to this image, sure. That is the 18 items that we’re going to begin operation and that is strategic plan and we’ve made some shifts with Búzios 7 IPB, simply highlighted that we’re speaking about. Regardless of all that’s altering the yr, we’re speaking about minor shifts is just not huge and there’s affect on our manufacturing development. On this slide, you’ll be able to — additionally you’ll be able to see the image of P-78 for Búzios unit, for Búzios that’s in underneath development.
Now, you’ll be able to go to the following. Oh, sure, speaking about downstream, sure, we’ve an important achievement on this quarter that we signed the contracts to restart our course of fuel items in Itaboraí, GASLUB, sure. In order that was interrupted subsequent yr. And we bought pulling again once more within the unbelievable time, in six months’ instances. Now we’ve to carry the contract, signal it. And really the folks mobilize on website, sure. So we hold the planning to begin operation 2024. And one other actually vital achievement, that is the contract extension of Prepare 1 of RNEST. So Prepare #1, we truly are going to broaden from 115,000 barrels a day to 130,000 barrels a day. And the completion of this work is scheduled for 2024. And simply one other data, in all probability most of , we’ve already in development the air emission removing unit as the development is in progress in RNEST as effectively.
Properly, that is what I’ve for in the present day. Thanks very a lot to your consideration.
Carla Albano
Thanks, Travassos. Now I’ll move the ground to William França, Chief Industrial Course of & Product Officer. William, go forward.
William França
Good afternoon for everybody. It’s a pleasure to remain right here and to current the highlights of refining phase within the first quarter of ’23. And I am so joyful to be accountable for our refineries within the oil and fuel crops.
Within the first quarter of ’23 — I am sorry, we’re going to prioritize two indication on this presentation, okay: utilization issue refineries; and operation availability. Within the first quarter, the utilization consider our refineries was 85%, I feel that is a vital and glorious end result contemplating that we had three huge turnarounds throughout this era in REFAP, REVAP and RPBC. We spend nearly R$1.2 billion by sustaining greater than 800 bigger equipments, such as you had adjustments, pipelines, pumps, towers and reactors. And we had greater than 10,000 collaborators contributed and carried out on this huge problem, serving to us. In April, we had our utilization issue of 29%. In that starting of Could, we’re performing above 90%.
Relating to the operational availability, within the first quarter of ’23 we obtained a end result above 96%, which most of our refiners achieved the extent of the very best refineries together with the businesses of United States, okay?
Thanks to your focus. Have a pleasant day.
Operator
Thanks, William. Now I will name Claudio Schlosser, Chief Logistics, Commercialization and Markets Officer. Schlosser, go forward.
Claudio Schlosser
Sure, thanks. Howdy, everyone. It is a pleasure to be right here with you in the present day to speak about our first quarter ’23 outcomes. Subsequent slide please.
On this slide, we’ll speak concerning the oil product gross sales. As you’ll be able to see, there was a discount in gross sales of oil merchandise within the home market, dropped 5% in contrast with the earlier comparable quarter. This was already anticipated, as diesel and gasoline seasonally have a weaker consumption within the first quarter of the yr. You will need to see that on this quarterly composition, there’s nonetheless the affect of divestment of REMAN, REMAN we needed to cool in on the finish of the final yr. Even so, it is very important spotlight that gasoline gross sales had been the best versus that the primary quarter within the final six years, pushed by the better competitiveness of gasoline in relation to ethanol.
Relating to the international markets, the drop of gasoline oil export was brought on by decrease manufacturing because of the scattered shutdowns of a few of our greatest refineries, as talked about by Director William.
Sometimes the subject of the product gross sales, I’ll wish to take the chance to convey for us our focus available on the market. Retail market has even change into a part of the identify of this world. That is why I need to spotlight the startup of the brand new diesel and gasoline gross sales middle in November in Almirante Barroso, Búzios. This motion constraints our presence within the Midwest and permits the observe of particular industrial motion within the area. This can be a crucial milestone that ensures Petrobras’ presence within the area that ought to develop probably the most within the coming years.
Subsequent slide, we’ll speak about oil exports circulation. As you’ll be able to see on this slide, speaking about oil exports, our major vacation spot stays China. Nevertheless, it is very important improve that we proceed to work continuously to hunt world alternatives and to develop new purchasers, which generate extra worth for Petrobras as well as of diversifying the shopper portfolio. One other key motion is the market growth for oil streams corresponding to Sururu, Mero and Atapu. The Búzios and Tupi streams are already well-known within the worldwide market with the ensures and higher liquidity within the pricing.
Subsequent slide. Lastly, I current the highlights of the quarter that reinforce Petrobras’ dedication to supplying extra accountable fuels. We now have our first bunker filling fleet vessel with renewable content material with Darcy Ribeiro, this ship that’s within the image and it is a part of the Petro technique. This gasoline was formulated with 10% soy biodiesel, decreasing about 7% of greenhouse fuel emissions, contemplating the whole lifecycle of the gasoline, an enormous step in the direction of the purpose of decreasing carbon emissions. Through the 40 days of testing, no anomalies had been reported by the gasoline or operational variations in relation to the mineral bunker. Samples of collected gasoline and ship monitoring knowledge are within the last stage of research.
One other motion in the identical line was that we began providing the home market solely gasoline oil with a most sulfur content material of 1% discontinuing the sale of gasoline oil with a most sulfur content material of about 2%. By guaranteeing that each one gasoline oil bought by the corporate within the home market has a low sulfur content material, we assist customers within the business phase to scale back their emissions. I additionally spotlight the gross sales of the brand new product, the Extremely Low Sulfur Marine Fuel Oil, marine gasoline with the utmost sulfur content material of 0.1%. The brand new marine fuel oil is produced on the Presidente Bernardes refinery, RPBC in Cubatão, São Paulo.
Beforehand, the merchandise bought on the Port of Santos to lengthy haul and the [coverage] ship haulers was standard Petrobras marine fuel oil containing a most tremendous content material of 0.5%. And introducing this Extremely Low Sulfur MGO, we began serving to ship haulers to scale back emissions of the issue content material sulfur oxide, along with avoiding fueling stops and all the best way up the vessels passing by the sulfur emission management areas, decreasing the associated fee and the time. These actions present that we’re heading in the right direction in creating cleaner fuels and guaranteeing decrease emissions, producing nice worth for the corporate, society and the surroundings.
That is the ultimate slide. And going again to Carla.
Query-and-Reply Session
A – Carla Albano
Thanks, Schlosser. Thanks all, we are able to transfer on to our Q&A session. And the primary query that we acquired comes from Bruno Amorim with Goldman Sachs and it is for Sergio. Sergio, Petrobras CapEx is poised to develop within the subsequent few years underneath the present and presumably the brand new strategic plan to be introduced, what’s the snug stage of money place the corporate ought to goal, extra, much less or according to the prior administration goal of $8 billion?
Sergio Caetano Leite
Thanks, Bruno, to your query. I imagine that the degrees arrange within the present enterprise are very prudent. I feel we should hold strong parameters when it comes to liquidity and leverage. We wished to at all times hold sturdy monetary well being territory, which permit us to face inevitable downcycles in oil costs. Additionally, we have to ensure that our investments will likely be self-funded with our operational money circulation, nonetheless, permitting to emphasise that the execution of the brand new marketing strategy could end in a revision of the present targets. Than you, Bruno.
Carla Albano
Thanks, Sergio. The following query comes from Vicente Falanga with Bradesco BBI. And it is for Travassos. Travassos, the corporate not too long ago introduced the delay within the startup of some platforms. What was the foremost reason behind that?
Carlos Travassos
Thanks very a lot to your query. That is an excellent query. Really, we’ve in that — truly it is a minor adjustment on the schedule. Regardless of of we see the shift from one yr to a different yr, sure, we’re speaking about minor change, after which possibly attributable to some notion of our danger evaluation, and these perceptions is regarded for the provision chain markets, each for high sides and in addition for subsea. However only for data, should you check out into an IPB, that is we’re speaking about 13 days of shifts, sure, not an excessive amount of. In fact, if you see a shift in all probability one yr to a different yr, appears that you’ve got an enormous change sure. However right here we’re not speaking a few huge change. However Petrobras, on a regular basis that we’re having a change, that seems in our enterprise plans, we’re very clear, and it is vital to indicate up and analyze to the market, sure. However this modification doesn’t convey any affect on our manufacturing curve, okay? Thanks very a lot to your query.
Carla Albano
Thanks, Travassos. The following query comes from Luiz Carvalho with UBS. And it is for Tolmasquim. Tolmasquim, we’re seeing a sequence of feedback concerning the corporate’s focus sooner or later, notably with diversification of investments centered on power transition. May you record some potential investments choices, how briskly the funding portfolio might be constructed? This portfolio might be made by natural investments or potential acquisitions? Will the corporate pursue belongings in petrochemicals, renewable energy era, offshore wind, fertilizers, biofuels, gasoline distribution, new refiners, or another sector? In your view, is there any goal on how a lot this might signify from future funding plans?
Mauricio Tolmasquim
Thanks very a lot, Luiz. Properly, actually, we’re planning to diversify our funding concerning renewables. For example, we’re speaking concerning the investing in offshore wind, inexperienced hydrogen, CCUS and different prospects. We’re nonetheless doing our strategic plan for the following cycle. So this strategic plan that we’re having the ability to perceive to know which know-how we’re going to make investments. What prices? The funding will be, as an instance, by prices — natural investments, but it surely’s not simply bought the likelihood to make some acquisition out. So our choice for natural investments. We need to do that primarily with partnership with different corporations, I feel is one of the simplest ways to do new investments, and primarily with huge corporations.
And when it comes to goal about future funding plans, we do not have but the targets, as a result of as I’ve mentioned, the strategic plan is being doing, however I may say that we’re going to do that with derisked monetary accountability. The concept is that it is attainable to do some diversification, however sustaining our monetary indicators.
Carla Albano
The following query additionally from Luiz Carvalho with UBS is for Schlosser. Schlosser, the corporate’s present gasoline worth coverage considers worldwide worth and import prices. What parameters might be utilized in a attainable new coverage? Is exports parity for the domestically produced merchandise an possibility? Does the corporate considers holding decrease margins on the domestically produced merchandise to be able to scale back worth strain for the ultimate client?
Claudio Schlosser
Thanks to your query, Luiz. First, I want to take the chance to remark that though the present worth coverage is utilizing quite a bit, what’s as much as Petrobras is to elaborate its industrial technique. That being mentioned, the import parity is a reference to the price of our importing opponents. However it would not must be the one reference for Petrobras. We now have different alternatives that we are able to discover by our put in refinery capability, logistics integration [with all the shine] and operational effectivity that enables us to compete effectively, preserving the corporate’s valued innovation. That’s there — that is the reply. Again to you, Carla.
Carla Albano
Thanks, Schlosser. The following query comes from Monique Greco with Itaú BBA. She despatched us a message. Thanks for the chance for addressing our questions. On behalf of Itaú, I might wish to want the brand new Government Board good luck on this new section.
The primary query from Monique is to Spinelli. May you touch upon the problem you anticipate to come across in your new place? And if attainable, share some outlook plans and concepts to be applied throughout your time period.
Mario Spinelli
Hello, Monique. Thanks to your query. Initially, I take into account that is vital to level out that we already had a really sturdy integrity…
Carla Albano
Spinelli, you need to activate the digital camera. Sorry.
Mario Spinelli
Activate. Is it working, Carla? Are you able to see?
Carla Albano
Now I can see. Thanks.
Mario Spinelli
Okay. And so initially, I feel that we should take into account that we’ve a really sturdy integrity and governance system. However that does not imply that there is not something to do. Fairly the opposite. What we have to do is now to boost this technique, in order that it turns into extra sustainable and completely aligned with our enterprise. And there are vital points associated to enhancing our efficiency that may be thought-about, corresponding to our technique to forestall and fight harassment, it is simply an instance. This is a vital level for us, and we’ll embrace it.
Furthermore, some know-how instruments will be included into our compliance actions, making them extra environment friendly and agile. We’ll improve our compliance danger administration, additionally specializing in points which will signify dangers of injury to the corporate’s strategic goals. And with this, we will establish probably the most uncovered areas and work in a preventive method.
However the level that I take into account most vital is that we have to be certain that our integrity program is robust and responsive sufficient to guard our belongings, to guard the corporate, and on the identical time, to make sure effectivity, respecting all the foundations and specializing in folks. I feel that is it. Thanks, Monique.
Carla Albano
Thanks, Spinelli. The following query from Monique is to William. William, despites the refinery upkeep perform within the latest quarters, the corporate has managed to take care of excessive ranges of refinery utilization charges. On this regard, is there nonetheless room to extend the present utilization ranges? What could be the specified stage of refinery utilization for the refining park as an entire?
William França
Hello, Monique. Thanks for a very good query for us. The reply is, sure. We now have bought situations to extend our refinery utilization due to two causes. Okay? First one, we’re performing and working our refiners and we’ve a superb reliability. So vital to stay in this sort of this one. And the second, the second level is as a result of we cannot have gotten huge turnarounds for the following month and thru the top of the yr. Then I feel that we’ve who’ve good guidelines to extend our utilization for the following month above 90% to be able to get to market alternatives, okay? However the purpose is to maximise our manufacturing and the standard of our operations, by respecting all the points of security, surroundings, well being, any integrity, okay? Thanks to your query, Monique.
Carla Albano
Thanks, William. And the following query is about E&P and I will name Anna Paula Zettel. Anna Paula, concerning the equatorial margin, may you touch upon the corporate’s expectation concerning the approvals at IBAMA? If the regulatory company president follows the damaging opinion offered by the technical space earlier this month, may you talk about the medium long-term options for the corporate to proceed enhance its manufacturing figures?
Anna Paula Zettel
Thanks, Carla. Thanks, Monique, to your query. Properly, Petrobras is awaiting for IBAMA positions on the preoperational evaluation. That is an train to guage the corporate response capability in an unlikely accident occasion. So it is a part of the method and we’re pursuing that authorization to the following steps of the allowing course of. We’re following strictly the necessities of IBAMA. And there aren’t any pending points from Petrobras. All of the assets are within the places ready for IBAMA’s authorization.
So we perceive that the exercise within the area could be very protected. That is the rationale we’ve deliberate $3 billion to drill 16 wells within the equatorial margin. However we even have investments plan in exploratory section, and we’re monitoring carefully all alternatives overseas. That is a part of our technique to construct up our reserves and to handle our portfolio. So thanks very a lot, Monique, once more.
Carla Albano
Thanks, Anna Paula. The following query comes from Gabriel Barra with Citi and it is for Mauricio Tolmasquim. Tolmasquim, may the managers give us extra data, return ranges, time for development on offshore wind farms, initiatives being studied along with ethanol?
Mauricio Tolmasquim
Properly, thanks for the query. Till the second we’ve solely as an instance a Memorandum of Understanding and a few initiatives, some areas that we apply to environmental license on the IBAMA. However as an instance we’re ready for the institution of the regulatory framework to begin learning particular initiatives. So for the time being we have no figures about investments, timeframe and so forth. I imagine which means unsure of time of — we’re going to have this sort of formation. Thanks.
Carla Albano
Thanks, Tolmasquim Thanks all. Right now, the Q&A session is over. In case you have any additional questions, you’ll be able to ship to our Investor Relations workforce. I might wish to thanks all to your consideration. It is crucial quarter with a strong end result from operation and monetary perspective. Thanks all and have an awesome day.
