Petrobras Fills Public Coffers With R$ 179 Billion in Just the First Quarter of This Year, Along With Investing Over R$ 16 Billion to Generate Jobs and Income for Brazilians!

Petrobras Announces Investments of US$ 3.1 Billion in the Second Quarter, Generating Greater Economic Development and Job and Income Creation for Brazilians.

Petrobras reported last night (07/31) to the market that the strong cash generation combined with the increase in the market price of oil, reflected the company’s operational performance and allowed for an expanded distribution of the generated results as well as the payment of taxes and government contributions to society.

Once again, the Brazilian oil giant has achieved solid quarterly results. According to the Chief Financial Officer and Investor Relations Officer, Rodrigo Araujo Alves, “the results of the second quarter of 2022 demonstrate the resilience and solidity of the company, which is capable of generating sustainable results, continuing its trajectory of value creation. In line with our commitment to distribute our results, we approved compensation to shareholders of R$ 6.73 per common and preferred share. Additionally, we collected a total of R$ 77.3 billion in taxes and government contributions in the second quarter. For the year, it was around R$ 147 billion, a 92% increase compared to the first half of last year.”

Petrobras states that its net profit for the quarter was R$ 54.3 billion, reflecting primarily the appreciation of the oil price (Brent) during the period. Additionally, the company’s results were positively impacted by a capital gain of R$ 14.2 billion related to the co-participation agreement in Sépia and Atapu.

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The state-owned company also claims that, excluding special items, the recurring net profit for the quarter was R$ 45 billion. These factors also explain the growth of recurring EBITDA to R$ 99.3 billion (+27% vs 1Q22) and free cash flow to R$ 63.4 billion (+57% vs 1Q22).

Petrobras Generates Significant Return for Brazilian Society Through Dividends and Tax Payments

Petrobras’ activities generated significant returns for Brazilian society through dividends and tax payments. In the first half of 2022 alone, Petrobras had already paid R$ 179 billion to the public coffers, with R$ 147 billion in taxes and government contributions and about R$ 32 billion* in dividends to the Union (paid up to July). Therefore, the payments of dividends and taxes to the public administration, when combined, exceed the reported profit for the period.

With the approval of a new dividend installment announced, the total compensation for its majority shareholder – the Union – will amount to R$ 64.1 billion* this year.

The proposed dividend is aligned with the Shareholder Compensation Policy, which stipulates that, in the case of gross debt lower than US$ 65 billion, Petrobras may distribute to its shareholders 60% of the difference between operating cash flow and capital expenditures and intangible asset acquisitions (investments). Furthermore, the Policy also provides for the possibility of extraordinary dividend payments, provided that the company’s financial sustainability is preserved.

In addition to tax and dividend payments, investments of US$ 3.1 billion in the second quarter stand out, which is 74% above the 1Q22, primarily due to the impact of the signing bonus related to the Sépia and Atapu fields. These resources are for investments made responsibly and that generate greater economic development and job and income creation for Brazilians.