Core Viewpoint - Brazilian state-run oil firm Petrobras has reported no impact on its oil and petroleum product output despite the initiation of a planned strike by some workers on Monday [1] Company Summary - Petrobras is a state-run oil company in Brazil [1] - The company has maintained its production levels of oil and petroleum products during the ongoing strike [1]

Core Viewpoint - Workers at Brazil's state-run oil company Petrobras are set to initiate a strike on Monday, as announced by their union in a statement on Wednesday [1] Company Summary - The strike involves employees of Petrobras, indicating potential disruptions in operations and production [1] - The announcement from the union highlights ongoing labor tensions within the company, which may affect its performance and market perception [1] Industry Summary - The strike at Petrobras reflects broader labor issues within the oil and gas sector in Brazil, which could impact supply chains and market stability [1] - Such labor actions may lead to increased scrutiny on state-run enterprises and their operational efficiency in the face of labor disputes [1]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $96.9 million, with operating income at $30.6 million and net income at $15.1 million. Adjusted EBITDA was reported at $61.6 million [4][9] - Available liquidity as of September 30, 2025, was $125.2 million, consisting of $77.2 million in cash and cash equivalents, plus $48 million in undrawn capacity on credit facilities, which is $20.4 million higher than at the end of Q2 2025 [4][9] Business Line Data and Key Metrics Changes - The company operated with a utilization rate of 99.9%, accounting for scheduled dry docking, resulting in an overall utilization of 96.5% [4] - The company extended its backlog to $963 million of fixed contracts, averaging 2.6 years, with potential for more if all options are exercised [9] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by FPSO startups and ramp-ups, which are expected to increase shuttle tanker demand [8][12] - Petrobras' five-year plan indicates that overall production volumes and project startup timelines are in line with or above prior expectations, which is positive for the Brazilian offshore market [12][13] Company Strategy and Development Direction - The company is focused on maintaining a robust financial model, evidenced by successful refinancing efforts and a commitment to debt repayment of $95 million or more per year [9] - The company has established a buyback program and completed the purchase of the Daqing Knutsen, indicating a strategy to enhance shareholder value and fleet growth [5][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the shuttle tanker demand absorbing the current order book, with expectations of a medium-term shortage of shuttle tankers against forthcoming production [13] - The management refrained from commenting on specific rates related to the Fortaleza Knutsen but indicated satisfaction with the expected rate under the new contract [19][20] Other Important Information - An unsolicited and non-binding offer from the sponsor, KNOT, to buy the publicly owned common units for $10 per unit is currently under evaluation by the Conflicts Committee [3][4] - The company has completed its refinancing schedule for the year, securing a $71 million loan and a $25 million revolving credit facility [8] Q&A Session Summary Question: Can you give me an appreciation for the potential rate change for Fortaleza? - Management did not comment on individual rates but expressed satisfaction with the expected rate [19][20] Question: How many dry dockings are expected in 2026? - Management confirmed that there would be at least four to five dry dockings in 2026 [21] Question: Will G&A expenses change with the acquisition of Daqing? - Management does not expect a material change in G&A expenses, maintaining it at approximately $1.6 million per quarter [22] Question: Has the buyback program concluded? - Management confirmed that the buyback program has concluded, stopping at three million instead of the full ten million authorization [25][26] Question: What is the timeframe for the independent committee process regarding the KNOT offer? - Management indicated that all available information was provided in the press release and that no further comments could be made [28][30]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $96.9 million, with operating income at $30.6 million and net income at $15.1 million. Adjusted EBITDA was reported at $61.6 million [4][9] - Available liquidity as of September 30, 2025, was $125.2 million, consisting of $77.2 million in cash and cash equivalents, plus $48 million in undrawn capacity on credit facilities, which is $20.4 million higher than at the end of Q2 2025 [4][9] Business Line Data and Key Metrics Changes - The company operated with a utilization rate of 99.9%, accounting for scheduled dry docking, resulting in an overall utilization of 96.5% [4] - The company extended its backlog to $963 million of fixed contracts, averaging 2.6 years, with potential for more if all options are exercised [8][9] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by FPSO startups and ramp-ups, which are expected to increase shuttle tanker demand [8][12] - Petrobras' five-year plan indicates that overall production volumes and project startup timelines in the pre-salt region are in line with or above prior expectations, suggesting a positive outlook for the Brazilian offshore market [12][13] Company Strategy and Development Direction - The company is focused on maintaining a robust financial model, evidenced by successful refinancing efforts and a commitment to debt repayment of $95 million or more per year [9][10] - The company has established a buyback program and completed the purchase of the Dan Cisne, indicating a strategy to enhance shareholder value and fleet growth [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the shuttle tanker demand absorbing the current order book, with expectations of a medium-term shortage of shuttle tankers against forthcoming production [13] - The management refrained from commenting on specific rates related to the Fortaleza contract but indicated satisfaction with the expected rate change [19][20] Other Important Information - An unsolicited and non-binding offer from the sponsor, KNOT, to buy publicly owned common units for $10 per unit is currently under evaluation by the Conflicts Committee [3][4] - The company has completed its refinancing schedule for the year, securing loans and credit facilities to support its operations [8][10] Q&A Session Summary Question: Can you provide insight on the potential rate change for Fortaleza when it moves to KNOT? - Management did not comment on individual rates but expressed satisfaction with the expected rate [19][20] Question: How many dry dockings are expected in 2026? - Management confirmed that there would likely be four to five dry dockings in 2026 [21] Question: Will G&A expenses change with the acquisition of Dan Cisne? - Management indicated that G&A is not expected to change materially and will remain around $1.6 million per quarter [22] Question: Has the unit buyback program concluded? - Management confirmed that the buyback program has concluded, stopping at three units instead of the full ten [25][26] Question: What is the expected timeframe for the independent committee process regarding the KNOT offer? - Management stated that no further information is available beyond the press release and that the process is ongoing [28][30]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $96.9 million, with operating income at $30.6 million and net income at $15.1 million. Adjusted EBITDA was reported at $61.6 million [4][9] - Available liquidity as of September 30, 2025, was $125.2 million, consisting of $77.2 million in cash and cash equivalents and $48 million in undrawn credit facilities, which is $20.4 million higher than at the end of Q2 2025 [4][9] Business Line Data and Key Metrics Changes - The company operated with a utilization rate of 99.9%, accounting for scheduled dry docking, resulting in an overall utilization of 96.5% [4] - The company extended its backlog to $963 million in fixed contracts, averaging 2.6 years, with potential for more if all options are exercised [9][12] Market Data and Key Metrics Changes - The shuttle tanker market is tightening in both Brazil and the North Sea, driven by FPSO startups and ramp-ups, which have positively impacted shuttle tanker demand growth [8][12] - Petrobras' five-year plan for 2026 to 2030 indicates that overall production volumes and project startup timelines are in line with or above prior expectations, suggesting a favorable outlook for the Brazilian offshore market [12] Company Strategy and Development Direction - The company has initiated a buyback program, purchasing nearly 385,000 common units at an average price of $7.87 per unit, which concluded in October [5][26] - The company is focused on prudent debt repayment, targeting $95 million or more per year, to manage its depreciating asset base effectively [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the charter market, indicating that charterers' options are likely to be exercised due to favorable market conditions [11] - The company is optimistic about the future demand for shuttle tankers, anticipating a medium-term shortage against forthcoming production [13] Other Important Information - The company received an unsolicited and non-binding offer from its sponsor, KNOT, to buy publicly owned common units for $10 each, which is currently under evaluation by the Conflicts Committee [3][4] - The company has completed refinancing of two facilities, including a $71 million loan secured by the Synnøve Knutsen and a $25 million revolving credit facility [7][10] Q&A Session Summary Question: Can you provide insight on the potential rate change for Fortaleza when it moves to KNOT? - Management refrained from commenting on specific rates but indicated satisfaction with the expected rate [18][19] Question: Will G&A expenses remain stable despite the acquisition of Dan Cisne? - Management confirmed that G&A is not expected to change materially, maintaining around $1.6 million per quarter [21] Question: Has the unit buyback program concluded? - Management confirmed that the buyback program has concluded, stopping at approximately $3 million instead of the full $10 million authorization [24][26] Question: What is the expected timeframe for the independent committee's evaluation process? - Management stated that all available information has been disclosed, and further details will depend on the Conflicts Committee's discussions with KNOT [27][29]

Financial Performance (3Q 2025) - Revenues reached $96.9 million[10], with an operating income of $30.6 million[10] and a net income of $15.1 million[10] - Adjusted EBITDA stood at $61.6 million[10] - A cash distribution of $0.026 per common unit was paid in November 2025[10, 18] Key Transactions & Refinancing - Daqing Knutsen was purchased for a net cash cost of $24.8 million[12], with KNOT guaranteeing the hire rate until July 2032[12, 22] - A common unit buyback program was concluded in October, with 384,739 common units purchased for $3.03 million, averaging $7.87 per unit[13, 28] - The Synnøve Knutsen loan was refinanced with a new $71.1 million senior secured term loan facility[24] - Refinancing of the Tove Knutsen was completed, generating $32 million of net proceeds[16] Contractual Agreements & Fleet Utilization - Fleet operated with 99.9% utilization, or 96.5% overall including the drydocking of the Tove Knutsen[10, 74] - The term of the current time charter for the Bodil Knutsen was extended to a fixed term ending in March 2029, followed by two charterer's options each of one year[17] - The term of the current time charter for the Hilda Knutsen was extended by 3 months firm (to June 2026) plus a further 9 months at the company's option (to March 2027)[15] - A time charter for the Fortaleza Knutsen was executed with KNOT, to commence Q2 2026 for a fixed period of one year plus two charterer's options each for one additional year[27] Strategic Developments - KNOT made an unsolicited non-binding offer to purchase all publicly held common units of the Partnership for $10 in cash per common unit[9, 25] - Contractual backlog expanded to $939.5 million of fixed contracts averaging 2.6 years, with charterers' options averaging a further 4.2 years[32, 54]

Core Insights - Petrobras is expanding its Abreu e Lima Refinery with the Train 2 project, which will double its processing capacity to 260,000 barrels per day by 2029, with an investment of approximately 12 billion reais [1][8] - The expansion aims to enhance Brazil's domestic fuel production, reduce reliance on fuel imports, and support national energy security [2][3] Expansion Significance - The addition of Train 2 will increase the refinery's output of refined petroleum products, including an estimated 88,000 barrels per day of S-10 diesel, which complies with environmental regulations [2] - This expansion will significantly decrease Brazil's dependence on fuel imports, addressing a long-standing challenge for the country's energy self-sufficiency [2] Economic Impact - The project is expected to create around 15,000 direct and indirect jobs, with approximately 5,700 workers currently engaged in construction [4][8] - Job creation will span various sectors, contributing to local infrastructure development and improving socio-economic conditions in surrounding municipalities [5] Sustainability Initiatives - Petrobras is committed to sustainable practices in the RNEST expansion, including the implementation of the Atmospheric Emissions Reduction Unit to mitigate environmental impact [6] - The company is also involved in social and environmental initiatives in 29 communities across seven municipalities, aimed at enhancing local living standards and promoting sustainable development [7] Strategic Plans - The expansion is part of Petrobras' long-term strategy to maintain leadership in Brazil's oil and gas sector, with a total investment budget of $109 billion (581.2 billion reais) for the 2026–2030 period [9] - The company is focusing on refining capacity and domestic fuel production while investing in technologies to improve refinery processes and reduce carbon emissions [10] Conclusion - The Train 2 expansion at the Abreu e Lima Refinery represents a significant step towards enhancing Brazil's energy independence, creating jobs, and supporting regional economic development while balancing industrial growth with social responsibility [11][12]

Core Insights - Petrobras, the Brazilian state-run oil firm, will increase the average price of jet fuel sold to distributors by 3.8%, which translates to an increase of 0.13 real ($0.0243) per liter, effective from December 1 [1] Company Summary - Petrobras is implementing a price increase for jet fuel, indicating a strategic adjustment in response to market conditions [1]

Core Insights - Petrobras has outlined its investment strategy for 2026-2030, adapting to fluctuating oil prices and global market shifts [1][16] - The company has reduced its total investment budget by 2% to $109 billion, marking the first downward revision since President Lula's inauguration in 2023 [2][9] Investment Overview - The total investment budget for 2026-2030 is set at $109 billion, with approximately $91 billion allocated to ongoing projects [2][3] - $10 billion is earmarked for projects pending final budget approvals [3] Exploration and Production Investments - $69.2 billion is dedicated to exploration and production, with 62% of this amount focused on Brazil's pre-salt fields [4][5] - 24% of the exploration and production budget is allocated to post-salt fields, while 10% is for reserve expansion activities [5] Production Targets and Outlook - Petrobras aims for peak oil production of 2.7 million barrels per day (mbbl/d) by 2028, with total production projected to reach 3.4 million barrels of oil equivalent (mboe) per day by 2028 and 2029 [6][9] - The short-term oil production target has been raised to 2.5 mbbl/d for the coming year [7] New Projects and Technological Advancements - The company plans to implement eight new production systems by 2030 to support its production targets [10] - Petrobras has received permits to drill in the Equatorial Margin, with plans for 15 wells in the coming years [11] Financial Management and Shareholder Returns - Petrobras has committed to regular dividend payouts between $45 billion and $50 billion over the 2026-2030 period [13] - The company has set a gross debt cap of $75 billion to maintain financial robustness [14] Impact of Global Oil Price Fluctuations - The investment budget reduction is largely due to the unpredictable nature of global oil prices [15] - Despite the budget cut, Petrobras remains confident in executing its long-term strategic vision [16] Decarbonization and Sustainability Initiatives - Petrobras is investing in decarbonization projects, including green technology and carbon capture initiatives [17] Strategic Path Forward - The Business Plan reflects a balanced approach to growth, innovation, and financial responsibility, positioning Petrobras for continued success in the energy sector [18][19]

Core Points - Petrobras is hosting a webcast to discuss its new business plan for the period 2026-2030 [1] - The event includes simultaneous translation into English, indicating a focus on international investors [1] - Key executives present include the President of Petrobras and the Executive Director of Energy Transition and Sustainability [2]