Petrobras(US:PBR)2023-05-12 21:47Financial Data and Key Metrics Changes - EBITDA reached approximately $14 billion, marking the fourth highest in Petrobras' history [11] - Net income was $7.3 billion, down from $8.2 billion in the previous quarter, primarily due to Brent devaluation and increased tax expenses [16] - Free cash flow was around $8 billion, indicating strong cash generation [11] - Gross debt decreased to $53.3 billion, the lowest level since 2010, while net debt was $37.6 billion, a 9.5% drop compared to the end of 2022 [36] Business Segment Data and Key Metrics Changes - Exploration and Production segment's EBITDA declined by 1% compared to Q1 2022, impacted by Brent price devaluation [13] - Downstream segment's EBITDA was 15% lower than the previous quarter due to inventory turnover effects from Brent price reductions [13] - Gas and Power EBITDA rose by 16% due to favorable market conditions and strategic actions [35] Market Data and Key Metrics Changes - Brent prices dropped by 8% during the quarter, and the average exchange rate decreased by 1% compared to Q4 2022 [12] - The natural gas market remained stable compared to Q1 2022, but there was a decrease of 16 million cubic meters per day due to market opening and increased competition [42] Company Strategy and Development Direction - The company is focused on leading the energy transition while maintaining its oil production capabilities, aiming for a diversified investment strategy [30] - Petrobras plans to decarbonize production processes and develop greener products, positioning itself as a leader in the energy transition [30] - The strategic plan for 2023-2027 includes investments in new production units and enhancing operational efficiency [26] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of a skilled workforce to meet market demands, especially during the energy transition [5] - The company remains committed to generating value and financial sustainability, having paid R$63 billion in taxes and government take in Q1 2023 [33] - Future investments will focus on renewable energy and sustainability, with a preference for organic growth through partnerships [90] Other Important Information - The company achieved a new monthly production record in February 2023, with pre-salt production reaching 77% of total production [9][24] - Significant advancements were made in refining operations, including the launch of new low-sulfur fuel products [10][83] Q&A Session Summary Question: What are the potential investment options for energy transition? - Management indicated that while specific targets are not yet set, diversification will be pursued with financial responsibility, focusing on organic investments and partnerships [61][90] Question: What caused the delay in the startup of some platforms? - The delay was attributed to minor adjustments in the schedule, primarily related to supply chain perceptions, with shifts being minimal [87][88] Question: How does the company plan to manage its fuel pricing policy? - The current pricing policy considers international prices, but management emphasized the need for a robust commercial strategy that may explore other pricing references [91][100]