These dividends and interest on capital were paid
in June and July 2022, in 2 equal installments.
The amount is indexed to the Selic rate, from the
date of the payment to the end of the fiscal year, and will be considered when determining the remaining dividends to be paid relating
to 2022 when the annual amounts are calculated.
The anticipation of interest on capital for the
year 2022 resulted in a deductible expense which reduced the income tax expense by US$ 385. This amount was subject to withholding
income tax (IRRF) of 15%, except for immune and exempt shareholders, as established in applicable law.
At June 30, 2022, the balance of dividends payable,
in the amount of US$ 4,633, corresponds to the second installment of the anticipation of dividends for the year 2022 (amount of R$
24,233 million paid in Brazilian reais translated at the final exchange rate of the period) , which was paid on July 20, 2022.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Earnings (Losses) Per Share
|
|
Jan-Jun/2022 |
|
Jan-Jun/2021 |
|
Common |
Preferred |
Total |
Common |
Preferred |
Total |
Net income attributable to shareholders of Petrobras |
11,191 |
8,424 |
19,615 |
4,736 |
3,565 |
8,301 |
Weighted average number of outstanding shares |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
Basic and diluted earnings per share - in U.S. dollars |
1.50 |
1.50 |
1.50 |
0.64 |
0.64 |
0.64 |
Basic and diluted earnings per ADS equivalent - in U.S. dollars (*) |
3.00 |
3.00 |
3.00 |
1.28 |
1.28 |
1.28 |
|
|
|
Apr-Jun/2022 |
|
Apr-Jun/2021 |
|
Common |
Preferred |
Total |
Common |
Preferred |
Total |
Net income attributable to shareholders of Petrobras |
6,282 |
4,728 |
11,010 |
4,633 |
3,488 |
8,121 |
Weighted average number of outstanding shares |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
7,442,231,382 |
5,601,969,879 |
13,044,201,261 |
Basic and diluted earnings per share - in U.S. dollars |
0.84 |
0.84 |
0.84 |
0.62 |
0.62 |
0.62 |
Basic and diluted earnings per ADS equivalent - in U.S. dollars (*) |
1.68 |
1.68 |
1.68 |
1.24 |
1.24 |
1.24 |
(*) Petrobras' ADSs are equivalent to two shares. |
Basic earnings per share are calculated by dividing
the net income attributable to shareholders of Petrobras by the weighted average number of outstanding shares during the period.
Diluted earnings per share are calculated by adjusting
the net income attributable to shareholders of Petrobras and the weighted average number of outstanding shares during the period taking
into account the effects of all dilutive potential shares (equity instrument or contractual arrangements that are convertible into shares).
Basic and diluted earnings are identical as the
Company has no potentially dilutive shares.
|
26. | Fair value of financial assets
and liabilities |
Fair value measured of assets and liabilities
|
Level I |
Level II |
Level III |
Total fair
value
recorded |
Assets |
|
|
|
|
Marketable securities |
622 |
- |
- |
622 |
Commodity derivatives |
39 |
4 |
- |
43 |
Balance at June 30, 2022 |
661 |
4 |
- |
665 |
Balance at December 31, 2021 |
650 |
23 |
− |
673 |
|
|
|
|
|
Liabilities |
|
|
|
|
Foreign currency derivatives |
- |
(273) |
- |
(273) |
Interest rate derivatives |
− |
(7) |
- |
(7) |
Balance at June 30, 2022 |
− |
(280) |
- |
(280) |
Balance at December 31, 2021 |
(1) |
(272) |
− |
(273) |
|
|
|
|
|
The estimated fair value for the Company’s
non-current debt, computed based on the prevailing market rates, is set out in note 23.
Certain receivables are classified as fair value
through profit or loss, as presented in note 9.
The fair values of cash and cash equivalents, current
debt and other financial assets and liabilities are equivalent or do not differ significantly from their carrying amounts.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
| 27.1. | Derivative financial instruments |
A summary of the positions of the derivative financial
instruments held by the Company and recognized in other current assets and liabilities as of June 30, 2022 , as well as the amounts recognized
in the statement of income and other comprehensive income and the guarantees given is set out as follows:
Schedule of statement of financial position
|
|
Statement of Financial Position |
|
|
|
|
Fair value |
|
|
Notional value |
Asset Position (Liability) |
Maturity |
|
06.30.2022 |
12.31.2021 |
06.30.2022 |
12.31.2021 |
|
Derivatives not designated for hedge accounting |
|
|
|
|
|
Future
contracts - total (*) |
(3,884) |
(1,308) |
39 |
(1) |
|
Long position/Crude oil and oil products |
5,242 |
1,380 |
- |
- |
2022 |
Short position/Crude oil and oil products |
(9,126) |
(2,688) |
- |
- |
2022 |
Swap
(**) |
|
|
|
|
− |
Long
put/ Soybean oil (**) |
(13) |
(11) |
2 |
- |
2022 |
Options |
|
|
|
|
|
Long
put/ Soybean oil (**) |
(25) |
− |
2 |
- |
2022 |
Forward contracts |
|
|
|
|
|
Short
position/Foreign currency (BRL/USD) (***) |
US$ 64 |
US$ 15 |
(3) |
- |
2022 |
Short
position/Foreign currency (EUR/USD) (***) |
EUR 94 |
- |
(1) |
− |
2022 |
Swap |
|
|
|
|
|
Foreign
currency / Cross-currency Swap (***) |
GBP 583 |
GBP 583 |
(31) |
23 |
2026 |
Foreign
currency / Cross-currency Swap (***) |
GBP 442 |
GBP 442 |
(137) |
(50) |
2034 |
Swap - IPCA |
R$ 3,008 |
R$ 3,008 |
(7) |
(1) |
2029/2034 |
Foreign
currency / Cross-currency Swap (***) |
US$ 729 |
US$ 729 |
(102) |
(221) |
2024/2029 |
Total recognized in the Statement of Financial Position |
|
|
(238) |
(250) |
|
(*) Notional value in thousands of bbl. |
(**) Notional value in thousands of tons. |
(***) Amounts in US$, GBP, EUR and R$ are presented in million.
|
Schedule of Amounts Recognized and Guarantees Given Related to Derivative Financial Instrument
|
Gains/ (losses) recognized in the statement of income |
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Apr-Jun/2022 |
Apr-Jun/2021 |
Commodity derivatives |
|
|
|
|
Other commodity derivative transactions - 27.2 (a) |
(222) |
(42) |
(169) |
(19) |
Recognized in Other Income and Expenses |
(222) |
(42) |
(169) |
(19) |
Currency derivatives |
|
|
|
|
Swap Pounds Sterling x Dollar - 27.3 (b) |
(156) |
(3) |
(126) |
(32) |
NDF – Pounds Sterling x Dollar - 27.3 (b) |
− |
9 |
− |
5 |
Swap CDI x Dollar - 27.3 (b) |
147 |
56 |
(22) |
84 |
Others |
− |
1 |
− |
− |
|
(9) |
63 |
(148) |
57 |
Interest rate derivatives |
|
|
|
|
Swap - CDI X IPCA |
(16) |
(10) |
(15) |
18 |
|
(16) |
(10) |
(15) |
18 |
Cash
flow hedge on exports (*) |
(2,488) |
(2,307) |
(1,108) |
(1,194) |
Recognized in Net finance income (expense) |
(2,513) |
(2,254) |
(1,271) |
(1,119) |
Total |
(2,735) |
(2,296) |
(1,440) |
(1,138) |
(*) |
As presented in note 27.3 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Schedule of Amounts Recognized and Guarantees
Given Related to Derivative Financial Instrument of comprehensive income
|
Gains/ (losses) recognized in other comprehensive income |
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Apr-Jun/2022 |
Apr-Jun/2021 |
Cash
flow hedge on exports (*) |
7,561 |
4,758 |
(5,415) |
9,236 |
|
|
|
|
|
(*) |
As presented in note 27.3 |
|
|
|
|
Schedule of guarantees given as collateral
|
|
|
Guarantees given as collateral |
|
|
|
06.30.2022 |
12.31.2021 |
Commodity derivatives |
|
|
111 |
15 |
Currency derivatives |
|
|
134 |
27 |
Total |
|
|
245 |
42 |
A sensitivity analysis of the derivative financial
instruments for the different types of market risks as of June 30, 2022 is set out as follows:
Financial Instruments |
Risk |
Probable Scenario |
Reasonably possible
scenario |
Remote
Scenario |
Derivatives not designated for hedge accounting |
|
|
|
|
Future and forward contracts |
Crude oil and oil products - price changes |
- |
(192) |
(384) |
Future and forward contracts |
Soybean oil - price changes |
2 |
7 |
17 |
Option |
Soybean oil – price changes |
2 |
3 |
141 |
Non-deliverable forwards (NDF) |
Foreign currency - depreciation BRL x USD |
(3) |
18 |
33 |
|
|
1 |
(164) |
(323) |
The probable scenario uses market references, used
in pricing models for oil, oil products and natural gas markets, and takes into account the closing price of the asset on June 30, 2022.
Therefore, no variation is considered arising from outstanding operations in this scenario. The reasonably possible and remote scenarios
reflect the potential effects on the statement of income from outstanding transactions, considering a variation in the closing price of
25% and 50%, respectively. To simulate the most unfavorable scenarios, the variation was applied to each asset according to open transactions:
price decrease for long positions and increase for short positions.
| 27.2. | Risk management of products prices |
The Company is usually exposed to commodity price
cycles, although it may use derivative instruments to hedge exposures related to prices of products purchased and sold to fulfill operational
needs and in specific circumstances depending on business environment analysis and assessment of whether the targets of the Strategic
Plan are being met.
| a) | Other commodity derivative transactions |
Petrobras, by use of its assets, positions and
market knowledge from its operations in Brazil and abroad, occasionally seeks to optimize some of its commercial operations in the international
market, with the use of commodity derivatives to manage price risk.
| 27.3. | Foreign exchange risk management |
| a) | Cash Flow Hedge involving the
Company’s future exports |
The carrying amounts, the fair value as of June
30, 2022, and a schedule of expected reclassifications to the statement of income of cumulative losses recognized in other comprehensive
income (shareholders’ equity) based on a US$ 1.00 / R$ 5.2380 exchange rate are set out below:
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Schedule of expected reclassifications to the
statement of income of cumulative losses
|
|
|
Present value of hedging instrument notional
value at
06.30.2022 |
Hedging Instrument |
Hedged Transactions |
Nature
of the Risk |
Maturity
Date |
US$ million |
R$ million |
Foreign exchange gains and losses on proportion of non-derivative financial instruments cash flows |
Foreign exchange gains and losses of highly probable future monthly exports revenues |
Foreign Currency
– Real vs U.S. Dollar
Spot Rate |
July 2022 to June 2032 |
64,626 |
338,509 |
Changes in the present value of hedging instrument notional value |
US$ million |
R$ million |
Amounts designated as of December 31, 2021 |
72,640 |
405,370 |
Additional hedging relationships designated, designations revoked and hedging instruments re-designated |
6,162 |
32,036 |
Exports affecting the statement of income |
(5,794) |
(29,264) |
Principal repayments / amortization |
(8,382) |
(42,533) |
Foreign exchange variation |
- |
(27,100) |
Amounts designated as of June 30, 2022 |
64,626 |
338,509 |
Nominal value of hedging instrument (finance debt and lease liability) at June 30, 2022 |
75,052 |
393,121 |
In the first half of 2022, the Company recognized
a US $83 loss within foreign exchange gains (losses) due to ineffectiveness (a US$ 15 gain in the same period of 2021).
The average ratio of future exports for which cash
flow hedge accounting was designated to the highly probable future exports is 62.77%.
A roll-forward schedule of cumulative foreign exchange
losses recognized in other comprehensive income as of June 30, 2022 is set out below:
Schedule of cumulative foreign exchange losses recognized
|
Exchange rate variation |
Tax effect |
Total |
Balance at December 31, 2021 |
(36,621) |
12,452 |
(24,169) |
Recognized in Other comprehensive income |
5,073 |
(1,725) |
3,348 |
Reclassified to the statement of income - occurred exports |
2,488 |
(846) |
1,642 |
Balance at June 30, 2022 |
(29,060) |
9,881 |
(19,179) |
|
|
|
|
|
Exchange rate variation |
Tax effect |
Total |
Balance at December 31, 2020 |
(37,257) |
12,667 |
(24,590) |
Recognized in Other comprehensive income |
2,451 |
(833) |
1,618 |
Reclassified to the statement of income - occurred exports |
2,307 |
(784) |
1,523 |
Balance at June 30, 2021 |
(32,499) |
11,050 |
(21,449) |
Additional hedging relationships may be revoked
or additional reclassification adjustments from equity to the statement of income may occur as a result of changes in forecasted export
prices and export volumes following a revision of the Company’s strategic plan. Based on a sensitivity analysis considering a US$ 10/barrel
decrease in Brent prices stress scenario, when compared to the Brent price projections in the Strategic Plan 2022-2026, would not indicate
a reclassification from equity to the statement of income.
A schedule of expected reclassification of cumulative
foreign exchange losses recognized in other comprehensive income to the statement of income as of June 30, 2022 is set out below:
Schedule of reclassification of cumulative foreign exchange losses recognized
|
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 a 2031 |
Total |
Expected realization |
(4,281) |
(7,051) |
(5,289) |
(3,329) |
(2,828) |
(3,242) |
(29,060) |
|
|
|
|
|
|
|
|
|
| b) | Information on ongoing contracts |
As of June 30, 2022, the Company has outstanding
swap contracts - IPCA x CDI and CDI x Dollar, as well as Swap - Pound sterling x Dollar.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Swap contracts – IPCA x
CDI and CDI x Dollar
Changes in future interest rate curves (CDI) may
have an impact on the Company's results, due to the market value of these swap contracts. The parallel shock was estimated from the average
term of swap contracts (25% of the future interest rate). A sensitivity analysis on CDI through a parallel shock keeping all other variables
remaining constant, would result in the impacts shown in the following table:
Sensitivity Analysis |
Result |
Parallel increase of 300 basis points |
(29) |
Parallel reduction of 300 basis points |
48 |
| c) | Sensitivity analysis for foreign
exchange risk on financial instruments |
A sensitivity analysis is set out below, showing
the probable scenario for foreign exchange risk on financial instruments, computed based on external data along with reasonably possible
and remote scenarios (25% and 50% changes in the foreign exchange rates prevailing on June 30, 2022, respectively), except for assets
and liabilities of foreign subsidiaries, when transacted in a currency equivalent to their respective functional currencies. This analysis
only covers the exchange rate variation and maintains all other variables constant.
Schedule of sensitivity analysis for foreign exchange risk on financial instruments
Financial Instruments |
Exposure at 06.30.2022 |
Risk |
Probable
Scenario (*) |
Reasonably possible
scenario |
Remote
Scenario |
Assets |
4,458 |
|
10 |
1,115 |
2,229 |
Liabilities |
(86,164) |
Dollar/Real |
(197) |
(21,541) |
(43,082) |
Exchange rate - Cross currency swap |
(574) |
|
(1) |
(144) |
(287) |
Cash flow hedge on exports |
64,626 |
|
148 |
16,156 |
32,313 |
|
(17,654) |
|
(40) |
(4,414) |
(8,827) |
Assets |
3 |
Euro/Real |
− |
1 |
2 |
Liabilities |
(128) |
|
(1) |
(32) |
(64) |
|
(125) |
|
(1) |
(31) |
(62) |
Assets |
936 |
Euro/Dollar |
3 |
234 |
468 |
Liabilities |
(1,869) |
|
(6) |
(467) |
(935) |
|
(933) |
|
(3) |
(233) |
(467) |
Assets |
2 |
Pound/Real |
− |
1 |
1 |
Liabilities |
(20) |
|
− |
(5) |
(10) |
|
(18) |
|
− |
(4) |
(9) |
Assets |
1,661 |
Pound/Dollar |
5 |
415 |
830 |
Liabilities |
(3,267) |
|
(9) |
(817) |
(1,634) |
Derivative - cross currency swap |
1,246 |
|
4 |
312 |
623 |
|
(360) |
|
− |
(90) |
(181) |
Total at June 30, 2022 |
(19,090) |
|
(44) |
(4,772) |
(9,546) |
(*) |
At June 30, 2022, the probable scenario was computed
based on the following risks: R$ x U.S. Dollar - a 0.23% depreciation of the Real; Euro x U.S. Dollar: a 0.3% appreciation
of the Euro; Pound Sterling x U.S. Dollar: a 0.29% appreciation of the Pound Sterling; Real x Euro: a 0.5% depreciation of the Real;
and Real x Pound Sterling - a 0.5% depreciation of the Real. Source: Focus and Thomson Reuters. |
| 27.4. | Interest rate risk management |
The Company considers that interest rate risk does
not create a significant exposure and therefore, preferably does not use derivative financial instruments to manage interest rate risk,
except for specific situations faced by certain subsidiaries of Petrobras.
The sensitivity analysis of interest rate risk
presented in the table below is carried out for a 12-month term. Amounts referring to reasonably possible and remote scenarios mean the
total floating interest expense if there is a variation of 25% and 50% in these interest rates, respectively, maintaining all other variables
constant.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Schedule of interest rate risk management
Risk |
|
Probable
Scenario (*) |
Reasonably possible
scenario |
Remote
Scenario |
LIBOR 3M |
|
9 |
11 |
12 |
LIBOR 6M |
|
529 |
603 |
677 |
CDI |
|
138 |
173 |
207 |
TJLP |
|
69 |
87 |
104 |
IPCA |
|
89 |
111 |
133 |
|
|
834 |
985 |
1,133 |
(*) |
The probable scenario was calculated considering
the quotations of currencies and floating rates to which the debts are indexed. |
| 27.5. | Liquidity risk management |
The possibility of a shortage of cash or other
financial assets in order to settle the Company’s obligations on the agreed dates is managed by the Company. Following its liability
management strategy, the Company regularly evaluates market conditions and may enter into transactions to repurchase its own securities
or those of its affiliates, through a variety of means, including tender offers, make whole exercises and open market repurchases, in
order to improve its debt repayment profile and cost of debt.
| 28. | Related-party transactions |
| 28.1. | Transactions with joint ventures,
associates, government entities and pension plans |
The Company has engaged, and expects to continue
to engage, in the ordinary course of business in numerous transactions with joint ventures, associates, pension plans, as well as with
the Company’s controlling shareholder, the Brazilian Federal Government, which include transactions with banks and other entities
under its control, such as financing and banking, asset management and other transactions.
The balances of significant transactions are set
out in the following table:
Summary of Balances of Significant Transactions
|
|
06.30.2022 |
|
12.31.2021 |
|
|
|
|
|
|
Assets |
Liabilities |
Assets |
Liabilities |
Joint ventures and associates |
|
|
|
|
State-controlled gas distributors (joint ventures) |
205 |
51 |
255 |
42 |
Petrochemical companies (associates) |
2 |
10 |
26 |
12 |
Other associates and joint ventures |
96 |
1 |
104 |
13 |
Subtotal |
303 |
62 |
385 |
67 |
Brazilian government – Parent and its controlled entities |
|
|
|
|
Government bonds |
1,767 |
- |
1,446 |
- |
Banks controlled by the Brazilian Government |
9,825 |
1,611 |
8,417 |
1,267 |
Petroleum and alcohol account - receivables from the Brazilian Government |
582 |
- |
506 |
- |
Brazilian Federal Government - dividends payable |
− |
1,327 |
− |
− |
Others |
52 |
54 |
28 |
54 |
Subtotal |
12,226 |
2,992 |
10,397 |
1,321 |
Pension plans |
57 |
32 |
51 |
61 |
Total |
12,586 |
3,086 |
10,833 |
1,449 |
Current |
2,678 |
2,039 |
2,110 |
315 |
Non-Current |
9,908 |
1,047 |
8,723 |
1,134 |
Total |
12,586 |
3,086 |
10,833 |
1,449 |
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
The income/expenses of significant transactions
are set out in the following table:
|
2022 |
2021 |
2022 |
2021 |
|
Jan-Jun |
Jan-Jun |
Apr-Jun |
Apr-Jun |
|
|
|
|
|
Joint ventures and associates |
|
|
|
|
BR Distribuidora (now called Vibra Energia) |
− |
7,608 |
− |
4,298 |
Natural Gas Transportation Companies |
− |
(304) |
− |
(59) |
State-controlled gas distributors (joint ventures) |
1,196 |
1,034 |
622 |
585 |
Petrochemical companies (associates) |
2,457 |
1,590 |
1,332 |
822 |
Other associates and joint ventures |
89 |
119 |
60 |
77 |
Subtotal |
3,742 |
10,047 |
2,014 |
5,723 |
Brazilian government – Parent and its controlled entities |
|
|
|
|
Government bonds |
93 |
20 |
51 |
13 |
Banks controlled by the Brazilian Government |
(30) |
(93) |
(51) |
(30) |
Receivables from the Electricity sector |
− |
112 |
− |
97 |
Petroleum and alcohol account - receivables from the Brazilian Government |
46 |
22 |
27 |
11 |
Brazilian Federal Government - dividends |
(77) |
(4) |
(77) |
(4) |
Empresa Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A. – PPSA |
(171) |
(67) |
(132) |
(36) |
Others |
(5) |
(33) |
(16) |
(43) |
Subtotal |
(144) |
(43) |
(198) |
8 |
Total |
3,598 |
10,004 |
1,816 |
5,731 |
Revenues, mainly sales revenues |
3,800 |
10,604 |
2,019 |
5,870 |
Purchases and services |
5 |
(486) |
1 |
(106) |
Income (expenses) |
(245) |
(147) |
(156) |
(104) |
Foreign exchange and inflation indexation charges, net |
(31) |
(45) |
(43) |
(5) |
Finance income (expenses), net |
69 |
78 |
(5) |
76 |
Total |
3,598 |
10,004 |
1,816 |
5,731 |
The liability related to pension plans of the Company's
employees and managed by the Petros Foundation, including debt instruments, is presented in note 12.
| 28.2. | Compensation of key management
personnel |
The criteria for compensation of members of
the Board of Directors and the Board Executive Officers is based on the guidelines established by the Secretariat of Management and Governance
of the State-owned Companies (SEST) of the Ministry of Economy, and by the MME. The total compensation is set out as follows:
Summary of Total Compensation of Executive Officers and Board Members of Petrobras Parent Company
|
|
Jan-Jun/2022 |
|
Jan-Jun/2021 |
|
Executive Officers |
Board of Directors |
Total |
Executive Officers |
Board of Directors |
Total |
Wages and short-term benefits |
1.3 |
− |
1.3 |
1.3 |
− |
1.3 |
Social security and other employee-related taxes |
0.4 |
− |
0.4 |
0.3 |
− |
0.3 |
Post-employment benefits (pension plan) |
0.2 |
− |
0.2 |
0.1 |
− |
0.1 |
Benefits due to termination of tenure |
0.1 |
- |
0.1 |
0.2 |
- |
0.2 |
Total compensation recognized in the statement of income |
2.0 |
− |
2.0 |
1.9 |
− |
1.9 |
Total
compensation paid (*) |
4.1 |
− |
4.1 |
3.9 |
− |
3.9 |
Average
number of members in the period (**) |
9.00 |
11.00 |
20.00 |
9.00 |
10.33 |
19.33 |
Average
number of paid members in the period (***) |
9.00 |
2.83 |
11.83 |
9.00 |
5.00 |
14.00 |
(*) |
The variable compensation
(PPP) paid to management is included in the Executive Officers columns. |
(**) |
Monthly average number
of members. |
(***) |
Monthly average number
of paid members. |
In the six-month period ended June 30, 2022, expenses
related to compensation of the board members and executive officers of Petrobras amounted to US$ 5.8 (US$ 6.2 for the same period
of 2021).
On April 13, 2022, the Company’s Annual Shareholders’
Meeting set the threshold for the overall compensation for executive officers and board members at US$ 8 (R$ 39.5 million) from
April 2021 to March 2022.
The compensation of the Advisory Committees to
the Board of Directors is separate from the fixed compensation set for the Board Members and, therefore, has not been classified under
compensation of Petrobras’ key management personnel.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
In accordance with Brazilian regulations applicable
to companies controlled by the Brazilian Federal Government, Board members who are also members of the Statutory Audit Committees are
only compensated with respect to their Audit Committee duties. The total compensation concerning these members was US$ 340 thousand
for the six-month period ended June 30, 2022 (US$ 408 thousand with tax and social security costs). For the same period of 2021,
the total compensation concerning these members was US$ 245 thousand (US$ 290 thousand with tax and social security costs).
|
29. | Supplemental information on statement
of cash flows |
Schedule of supplemental information on statement of cash flows
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Amounts paid/received during the period: |
|
|
Withholding income tax paid on behalf of third-parties |
604 |
386 |
Transactions not involving cash |
|
|
Purchase of property, plant and equipment on credit |
19 |
- |
Lease |
3,168 |
1,094 |
Provision/(reversals) for decommissioning costs |
10 |
(1) |
Use of tax credits and judicial deposit for the payment of contingency |
1,137 |
- |
Remeasurement of property, plant and equipment acquired in previous periods |
38 |
- |
The final balance of Cash and cash equivalents
in the Statements of Cash Flows includes amounts related to assets classified as held for sale, as shown in the reconciliation below:
Schedule of cash and cash equivalents in the
statement of cash flows
|
Jan-Jun/2022 |
Jan-Jun/2021 |
Reconciliation of the balance at the beginning of the period |
|
|
Cash and cash equivalents in statements of financial position |
10,467 |
11,711 |
Cash and cash equivalents classified as assets held for sale |
13 |
14 |
Cash and cash equivalents according to Statements of Cash Flows (opening balance) |
10,480 |
11,725 |
Reconciliation of the balance at the end of the period |
|
|
Cash and cash equivalents in statements of financial position |
16,287 |
9,821 |
Cash and cash equivalents classified as assets held for sale |
7 |
1 |
Cash and cash equivalents according to Statements of Cash Flows (closing balance) |
16,294 |
9,822 |
Agreement with ANP on the collection of royalties
on the exploration of shale oil
On July 1, 2022, Petrobras signed an agreement
with the Brazilian Agency of Petroleum, Natural Gas and Biofuels (ANP), in the amount of US$ 115 (R$ 601 million), previously
approved by the Board of Directors and the Board of Executive Officers in October 2021, related to the collection of royalties on the
operation of Unidade de Industrialização de Xisto - SIX (a shale processing plant), located in the state of Paraná,
as well as an agreement to regulate the exploration and production of oil and gas from shale at this plant. This amount will be paid by
Petrobras with a down payment of US$ 29 (R$ 150 million) and the remaining balance in 60 monthly installments..
The effectiveness of the agreement is subject to
its judicial approval, so that, with said approval, all legal and administrative proceedings related to the collection of royalties and
administrative fines arising from the exploration of shale oil at SIX will be terminated.
The amount of the agreement was previously provisioned
in Petrobras’ financial statements at December 31, 2021, considering the probability of future cash outflow.
Closing of the sale of Deten petrochemical plant
On July 5, 2022, Petrobras closed the sale of its
entire interest (27.88%) in Deten Química S.A (Deten), a petrochemical plant, after fulfilling all conditions precedent, with the
receipt of US$ 98 (R$ 514 million), adjusted by dividends received since the transaction signing.
Information on the agreement signed in April 2022
is described in note 22, and the result arising from this operation will be recognized in the third quarter of 2022.
Credit line with sustainability commitments
On July 8, 2022, the Company signed with Bank of
China, MUFG and The Bank of Nova Scotia, a credit line with sustainability commitments (Sustainability-Linked Loan - SLL), in the amount
of US$ 1,250, maturing in July 2027. This agreement includes incentives for the achievement of sustainability commitments,
based on corporate performance indicators of Greenhouse Gas (GHG) Intensity in the E&P and Refining segments, as well as of Methane
Intensity in the E&P segment. The Company draw down the full amount in July 2022.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Sale of the Company’s entire interest
in Gaspetro
On July 11, 2022, Petrobras finalized the sale
of its remaining 51% interest in Petrobras Gás S.A. (Gaspetro) to Compass Gás e Energia S.A. (Compass). The transaction
was closed in the amount of US$ 400 (R$ 2,097 million), fully paid on that date.
The result arising from this operation will be
recognized in the third quarter of 2022.
Settlement of tender offer
On July 15, 2022, Petrobras concluded the tender
offer to buy back global notes maturing between 2024 and 2115, made by its wholly-owned subsidiary PGF BV. The principal amount delivered
by investors, excluding unpaid accrued interest, was US$ 854. The total amount paid was US$ 791, considering the prices offered
and excluding accrued interest until the closing date.
Conduct Adjustment Agreement with ANP
On July 27, 2022, Petrobras approved the execution
with the ANP of a Conduct Adjustment Agreement (TAC) for compensation of local content fines related to 22 concessions in which Petrobras
has a 100% interest, located in the Barreirinhas, Campos, Espírito Santo, Parecis, Potiguar, Recôncavo, Santos, Sergipe-Alagoas
and Solimões basins.
The TAC provides for the conversion of fines into
investment commitments in Exploration and Production with local content. Under the terms of the agreement, Petrobras is committed to investing
US$ 191 (R$1,000 million) in local content by December 31, 2026. Thus, all administrative proceedings related to the collection of fines
arising from non-compliance with local content in these concessions will be terminated, resulting in a reduction in the liability and
a reversal of exploration costs, in the amount of US$ 127, on June 30, 2022.
Distribution of remuneration to shareholders
On July 28, 2022, Petrobras’s Board of Directors
approved the distribution of remuneration to shareholders in the amount of US$ 16,839, or R$ 87,814 million (US$ 1.2909
per outstanding preferred and common shares, or R$ 6.732003), of which US$ 9,778, or R$ 50,993 million, as an anticipation
based on the net income for the three-month period ended June 30, 2022, and US$ 7,061, or R$ 36,821 million, as an intermediate
distribution by use of a portion of the the profit retention reserve, as presented in the following table:
Schedule of distribution of remuneration to shareholders
|
Date of register |
Amount per Share |
Amount |
Anticipation of dividends |
08.11.2022 |
0.6677 |
8,710 |
Anticipation of interest on capital |
08.11.2022 |
0.0819 |
1,068 |
Total anticipations based on the net income of Apr-Jun/2022 |
|
0.7496 |
9,778 |
Intermediate dividends by use of a portion of profit retention reserve |
08.11.2022 |
0.5413 |
7,061 |
Total distribution to shareholders |
|
1.2909 |
Outstanding preferred shares |
|
1.2909 |
7,232 |
Outstanding common shares |
|
1.2909 |
9,607 |
Amounts translated into U.S. dollar based on the exchange rate prevailing at the date of the approval. |
These dividends and interest on capital will be
paid in two equal installments, on August 31 and September 20, 2022, and will be deducted from the remuneration that will be distributed
to shareholders relating to the fiscal year 2022.
For the purpose of calculating the total dividends
to be paid relating to the fiscal year 2022, these amounts will be adjusted by the Selic rate from the date of the payments to the end
of the fiscal year.
NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PETROBRAS (Expressed in millions of US Dollars, unless otherwise indicated) |
|
Report
of Independent Registered Public Accounting Firm
KPMG Auditores Independentes Ltda.
Rua do Passeio, 38 - Setor 2 - 17º andar - Centro
20021-290 - Rio de Janeiro/RJ - Brasil
Caixa Postal 2888 - CEP 20001-970 - Rio de Janeiro/RJ - Brasil
Telefone +55 (21) 2207-9400
kpmg.com.br
Report of independent registered public accounting firm
The Shareholders and Board of Directors of
Petróleo Brasileiro S.A. - Petrobras
Results of review of consolidated interim financial statements
We have reviewed the consolidated interim statement of financial position
of Petróleo Brasileiro S.A. - Petrobras and subsidiaries (the “Company”) as of June 30, 2022, the related consolidated
statements of income and comprehensive income for the three and six-month periods ended June 30, 2022 and 2021, the related consolidated
statements of changes in shareholders’ equity and cash flows for the six-month periods ended June 30, 2022 and 2021, and the related
notes (collectively, the consolidated interim financial statements). Based on our reviews, we are not aware of any material modifications
that should be made to the consolidated interim financial statements for it to be in accordance with IAS 34 - Interim Financial Reporting,
as issued by the International Accounting Standards Board (IASB).
We have previously audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Company as of December
31, 2021, and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows
for the year then ended (not presented herein); and in our report dated March 30, 2022, we expressed an unqualified opinion on those consolidated
financial statements. In our opinion, the information set forth in the accompanying consolidated statement of financial position as of
December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which
it has been derived.
Basis for review results
These consolidated interim financial statements are the responsibility of
the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect
to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our reviews in accordance with the standards of the PCAOB.
A review of consolidated interim financial statements consists principally of applying analytical procedures and making inquiries of persons
responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards
of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly,
we do not express such an opinion.
/s/ KPMG Auditores Independentes Ltda.
Rio de Janeiro - RJ
July 28, 2022