Petrobras(US:PBR)2025-05-13 15:25Interim Financial Information Parent Company Interim Accounting Information The parent company reported a significant net income increase to R$35.2 billion in Q1 2025, with stable operating cash flow and growing shareholders' equity Statement of Financial Position | Account Description | 03.31.2025 (R$ Thousand) | 12.31.2024 (R$ Thousand) | | :--- | :--- | :--- | | Total Assets | 1,548,166,000 | 1,569,110,000 | | Current Assets | 178,196,000 | 209,362,000 | | Non-Current Assets | 1,369,970,000 | 1,359,748,000 | | Total Liabilities | 1,548,166,000 | 1,569,110,000 | | Current Liabilities | 277,746,000 | 281,677,000 | | Non-Current Liabilities | 874,579,000 | 921,427,000 | | Shareholders' Equity | 395,841,000 | 366,006,000 | Statement of Income | Account Description | Q1 2025 (R$ Thousand) | Q1 2024 (R$ Thousand) | | :--- | :--- | :--- | | Sales Revenues | 121,652,000 | 115,376,000 | | Gross Profit | 58,419,000 | 59,463,000 | | Net Income Before Income Taxes | 52,619,000 | 34,291,000 | | Net Income for the Period | 35,209,000 | 23,700,000 | | Income per Share (Ordinary/Preferred) | 2.73 | 1.83 | Statement of Cash Flows | Cash Flow Activity | Q1 2025 (R$ Thousand) | Q1 2024 (R$ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 41,765,000 | 40,628,000 | | Net cash used in investing activities | (500,000) | 3,847,000 | | Net cash used in financing activities | (37,259,000) | (40,338,000) | | Net increase in cash and cash equivalents | 4,006,000 | 4,137,000 | Consolidated Interim Accounting Information Consolidated Q1 2025 results show strong performance with net income rising to R$35.2 billion, increased revenue, and robust operating cash flow Statement of Financial Position | Account Description | 03.31.2025 (R$ Thousand) | 12.31.2024 (R$ Thousand) | | :--- | :--- | :--- | | Total Assets | 1,147,716,000 | 1,124,797,000 | | Current Assets | 124,853,000 | 135,212,000 | | Non-Current Assets | 1,022,863,000 | 989,585,000 | | Total Liabilities | 1,147,716,000 | 1,124,797,000 | | Current Liabilities | 173,828,000 | 194,808,000 | | Non-Current Liabilities | 576,285,000 | 562,475,000 | | Shareholders' Equity | 397,603,000 | 367,514,000 | Statement of Income | Account Description | Q1 2025 (R$ Thousand) | Q1 2024 (R$ Thousand) | | :--- | :--- | :--- | | Sales Revenues | 123,144,000 | 117,721,000 | | Gross Profit | 60,709,000 | 60,701,000 | | Net Income Before Income Taxes | 53,635,000 | 34,448,000 | | Net Income Attributable to Shareholders | 35,209,000 | 23,700,000 | | Income per Share (Ordinary/Preferred) | 2.73 | 1.83 | Statement of Cash Flows | Cash Flow Activity | Q1 2025 (R$ Thousand) | Q1 2024 (R$ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 49,338,000 | 46,481,000 | | Net cash used in investing activities | (10,235,000) | (16,440,000) | | Net cash used in financing activities | (31,444,000) | (35,582,000) | | Net increase/(decrease) in cash and cash equivalents | 6,706,000 | (3,924,000) | Notes to the Financial Statements The notes detail accounting policies, segment performance, legal contingencies, debt structure, and financial risk management strategies Sales Revenues - Total sales revenues increased to R$123.1 billion in Q1 2025 from R$117.7 billion in Q1 2024, driven primarily by higher sales of oil products in the domestic market32 Domestic Revenue by Product | Revenue by Product (Domestic) | Q1 2025 (R$ million) | Q1 2024 (R$ million) | | :--- | :--- | :--- | | Diesel | 38,360 | 35,051 | | Gasoline | 17,340 | 15,868 | | Crude oil | 8,208 | 6,088 | | Total Domestic Market | 91,093 | 84,743 | Revenue by Geography | Revenue by Geography | Q1 2025 (R$ million) | Q1 2024 (R$ million) | | :--- | :--- | :--- | | Brazil | 91,093 | 84,743 | | China | 6,276 | 7,359 | | Europe | 6,133 | 6,014 | | United States | 3,985 | 7,286 | | Total Foreign Market | 32,051 | 32,978 | Information by Operating Segment - The Exploration and Production (E&P) segment was the primary driver of profitability in Q1 2025, contributing R$29.2 billion to net income, consistent with its performance in Q1 20244142 - The Refining, Transportation & Marketing (RT&M) segment's net income decreased to R$2.2 billion from R$3.8 billion year-over-year4142 Q1 2025 Segment Performance | Segment Performance (Q1 2025) | E&P (R$ million) | RT&M (R$ million) | G&LCE (R$ million) | | :--- | :--- | :--- | :--- | | Sales Revenues | 88,169 | 116,819 | 10,867 | | Gross Profit | 48,454 | 7,053 | 4,307 | | Net Income (Loss) of the period | 29,228 | 2,155 | (77) | Provisions for Legal Proceedings, Judicial Deposits and Contingent Liabilities - As of March 31, 2025, the company has estimated contingent liabilities classified as 'possible' loss totaling R$249.6 billion, a slight increase from R$248.6 billion at year-end 202497 - The Federal Supreme Court (STF) recognized in March 2024 that the company's calculation formula for the Minimum Remuneration by Level and Regime (RMNR) is valid, and the company is adjusting loss expectations accordingly99 - On March 7, 2025, Petrobras and EIG entered into an agreement to end litigation related to Sete Brasil, with Petrobras paying EIG US$ 283 million to terminate the lawsuit122 Finance Debt - Total consolidated finance debt decreased to R$136.9 billion as of March 31, 2025, from R$143.4 billion at year-end 2024148 - The average maturity of outstanding debt as of March 31, 2025, is 12.19 years, supported by significant unused revolving credit facilities totaling over US$7 billion and R$6.3 billion154158 Equity - On January 29, 2025, the Board of Directors approved the cancellation of 155.8 million treasury shares without reducing share capital167 - The Annual General Meeting on April 16, 2025, approved total dividends for 2024 of R$73.9 billion, including a supplementary dividend of R$9.1 billion170171 Financial Risk Management - The company uses portions of its US dollar-denominated debt as hedging instruments for foreign exchange risk, with a notional value of US$68.8 billion as of March 31, 2025192193 - A sensitivity analysis shows that a 20% adverse price variation in open commodity derivative positions could result in a loss of R$511 million203206 Subsequent Events - On May 12, 2025, the Board of Directors approved the distribution of interim dividends and interest on capital for Q1 2025 totaling R$11.7 billion240241 Statement of Directors and Independent Auditors' Report Directors affirmed the interim financial statements, and the independent auditor's review found no material misstatements according to accounting standards - The Board of Directors declared that they reviewed, discussed, and agreed with the Interim Financial Statements for the period ended March 31, 2025243247 - KPMG Auditores Independentes Ltda. issued a review conclusion stating that nothing came to their attention that would cause them to believe the interim financial information was not prepared in all material respects according to relevant accounting standards253