NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
|
|
Pension
Plans
|
Medical Plan
|
|
|
|
|
Petros
Renegotiated (*)
|
Petros
Non-renegotiated (*)
|
Petros
2
|
AMS
|
Other
Plans
|
Jan-Mar/2021
|
Jan-Mar/2020
|
Present
value of obligations (VPO)
|
114
|
41
|
18
|
130
|
−
|
303
|
444
|
Obligations
with contribution for the revision of the lump sum death benefit
|
10
|
2
|
−
|
−
|
−
|
12
|
−
|
Net
costs
|
124
|
43
|
18
|
130
|
−
|
315
|
444
|
Related
to active employees
|
13
|
2
|
15
|
67
|
−
|
97
|
145
|
Related
to retired employees
|
111
|
41
|
3
|
63
|
−
|
218
|
299
|
Net
costs
|
124
|
43
|
18
|
130
|
−
|
315
|
444
|
(*)
It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.
|
|
Net
actuarial liabilities are computed based on annual review carried out by an independent actuary and were already considered in the Company’s
audited financial statements ended December 31, 2020.
On
March 29, 2021, the Deliberative Council of Petros approved the financial statements of the PPSP-R and PPSP-NR plans, which presented
a surplus in the fiscal year 2020, reversing the scenario of successive deficits in the two largest defined benefit plans managed by
the Foundation .
The
table below presents the reconciliation of the surplus of Petros Plan registered by Petros Foundation as of December 31, 2020 with
the net actuarial liability registered by the Company:
|
|
|
|
PPSP-R
|
PPSP-NR
|
Surplus
registered by Petros
|
(170)
|
(94)
|
Financial
assumptions
|
3,351
|
1,023
|
Ordinary
and extraordinary sponsor contributions
|
2,422
|
699
|
Changes
in fair value of plan assets (*)
|
1,886
|
839
|
Others
(including Actuarial valuation method)
|
(924)
|
(97)
|
Net
actuarial liability registered by the Company
|
6,565
|
2,370
|
(*)
It includes balance of accounts receivable arising from the Term of Financial Commitment - TFC signed with Petrobras, which Petros
recognizes as equity.
|
|
13.2.
|
Petros
2 Plan (PP2)
|
For
the first quarter of 2021, the Company's contribution to the defined contribution portion of the Petros Plan 2 was US$ 40 (US$ 50 for
the first quarter of 2020) recognized in the statement of income.
|
13.3.
|
Petros
3 Plan (PP3)
|
On
October 1, 2020, the Board of Directors approved the submission of the PP-3 for analysis by the Secretariat of Management and Governance
of the State-owned Companies (SEST) and to the Superintendency of Post-retirement benefits (PREVIC), which approved it on January 27,
2021.
The
PP-3 is a new pension plan with defined contribution characteristics and will be an exclusive option for voluntary migration of participants
from the PPSP-R and PPSP-NR plans, not including pre-70.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
Registrations
to this plan were made until April 30, 2021 and, after validation and completion of the technical and administrative feasibility study,
the Company will carry out an actuarial review of the original plans. This plan is expected to begin operating in the second half of
2021.
The
Company’s Board of Directors approved in 2020 a new management model for its medical plan, which started operating on April 1,
2021. The management of this plan is carried out by a nonprofit civil association, nominated Associação Petrobras de Saúde
(APS), also through the self-management type, in accordance with the requirements of the National Supplementary Health Agency (Agência
Nacional de Saúde Suplementar - ANS).
The
new model will generate no change in benefit, coverage or scope on the plan, as well as no accounting effects.
|
14.
|
Provisions
for legal proceedings
|
|
14.1.
|
Provisions
for legal proceedings, judicial deposits and contingent liabilities
|
The
Company recognizes provisions based on the best estimate of the costs of proceedings for which it is probable that an outflow of resources
embodying economic benefits will be required and that can be reliably estimated. These proceedings mainly include:
|
·
|
Labor
claims, in particular: (i) opt-out claims related to a review of the methodology by which
the minimum compensation based on an employee's position and work schedule (Remuneração
Mínima por Nível e Regime - RMNR) is calculated; and (ii) actions of outsourced
employees;
|
|
·
|
Tax
claims including: (i) claims relating to Brazilian federal tax credits applied that were
disallowed; (ii) alleged misappropriation of VAT (ICMS) tax credits; and (iii) fines for
non-compliance with accessory tax obligations;
|
|
·
|
Civil
claims, in particular: (i) lawsuits related to contracts; (ii) royalties and special participation
charges, including royalties over shale extraction; and (iii) penalties applied by ANP
relating to measurement systems.
|
|
·
|
Environmental
claims, specially: (i) compensation and fines relating to an environmental accident in the
State of Paraná in 2000; and (ii) fines relating to the Company’s offshore operation.
|
Provisions
for legal proceedings are set out as follows:
Current
and Non-current liabilities
|
03.31.2021
|
12.31.2020
|
Labor
claims
|
645
|
706
|
Tax
claims
|
310
|
488
|
Civil
claims
|
599
|
713
|
Environmental
claims
|
260
|
292
|
Total
|
1,814
|
2,199
|
|
Jan-Mar/2021
|
Jan-Dec/2020
|
Opening
Balance
|
2,199
|
3,113
|
Additions,
net of reversals
|
(83)
|
464
|
Use
of provision
|
(116)
|
(744)
|
Revaluation
of existing proceedings and interest charges
|
(12)
|
28
|
Others
|
12
|
20
|
Cumulative
translation adjustment
|
(186)
|
(682)
|
Closing
Balance
|
1,814
|
2,199
|
In
preparing its consolidated interim financial statements for the three-month period ended March 31, 2021, the Company considered all available
information concerning legal proceedings in which the Company is a defendant, in order to estimate the amounts of obligations and probability
that outflows of resources will be required.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
Non-current
assets
|
03.31.2021
|
12.31.2020
|
Tax
|
4,941
|
5,154
|
Labor
|
771
|
831
|
Civil
|
922
|
1,095
|
Environmental
|
103
|
113
|
Others
|
87
|
88
|
Total
|
6,824
|
7,281
|
|
Jan-Mar/2021
|
Jan-Dec/2020
|
Opening
Balance
|
7,281
|
8,236
|
Additions
|
165
|
937
|
Use
|
(12)
|
(86)
|
Accruals
and charges
|
30
|
90
|
Others
|
7
|
(4)
|
Cumulative
translation adjustment
|
(647)
|
(1,892)
|
Closing
Balance
|
6,824
|
7,281
|
In
the three-month period ended March 31, 2021, the Company made judicial deposits in the amount of US$ 165, including: (i) US$ 86
referring to IRPJ and CSLL for not adding profits of subsidiaries and affiliates domiciled abroad to the IRPJ and CSLL calculation basis;
(ii) US$ 53 relating to the unification of Fields (Cernambi, Tupi, Tartaruga Verde and Tartaruga Mestiça); (iii) US$ 51
related to the chartering of platforms due to the legal dispute related to the IRRF; (iv) US$ 48 referring to IRPJ and CSLL in the
deduction of Petros' expenses; and (v) US$ 31 referring to several judicial deposits of a tax nature, mainly offset by (vi) US$ 132
referring to the redemption of the deposit of IPI credits used to offset debts with the Federal Revenue of Brazil.
|
14.3.
|
Contingent
liabilities
|
The
estimates of contingent liabilities for legal proceedings are indexed to inflation and updated by applicable interest rates. Estimated
contingent liabilities for which the possibility of loss is possible are set out in the following table:
Nature
|
03.31.2021
|
12.31.2020
|
Tax
|
22,578
|
24,511
|
Labor
|
6,645
|
8,179
|
Civil
- General
|
4,713
|
4,621
|
Civil
- Environmental
|
1,387
|
1,465
|
Total
|
35,323
|
38,776
|
The
main contingent liabilities are:
|
·
|
Tax
matters comprising: i) withholding income tax (IRRF), Contribution of Intervention in the
Economic Domain (CIDE), Social Integration Program (PIS) and Contribution to Social Security
Financing (COFINS) on remittances for payments of vessel charters; (ii) income from foreign
subsidiaries and associates located outside Brazil not included in the computation of taxable
income (IRPJ and CSLL); (iii) tax on services provided offshore (ISS); (iv) requests to compensate
federal taxes disallowed by the Brazilian Federal Tax Authority; (v) collection and crediting
of ICMS by several states; and (vi) collection of social security contributions over payments
of bonuses.
|
|
·
|
Labor
matters comprising mainly actions requiring a review of the methodology by which the minimum
compensation based on an employee's position and work schedule (Remuneração
Mínima por Nível e Regime - RMNR) is calculated;
|
|
·
|
Civil
matters comprising mainly: (i) litigations regarding Sete Brasil; (ii) administrative proceedings
challenging an ANP order requiring Petrobras to pay additional special participation fees
and royalties (production taxes) with respect to several fields; (iii)
a public civil action that discusses the alleged illegality of the gas supply made by the
Company to its Nitrogen Fertilizer Production Unit; (iv) regulation agencies fines; and (v)
lawsuits related to contracts.
|
|
·
|
Environmental
matters comprising indemnities for material and collective moral damages to the environment
and environmental fines related to the Company operation.
|
In
the three-month period ended March 31, 2021, the main changes in the balance of contingent liabilities are related to: (i) a US$ 847
reduction in collective labor lawsuits in which unions question the formula for calculating the RMNR Complement, based on the published
minutes on the decision of the Supreme Federal Court in relation to the financial update indexes applied to labor debts; partially offset
by: (ii) a US$ 410 increase related to civil matters involving contractual issues; (iii) a US$ 142 increase referring to ICMS
collection on inventories and value added; (iv) a US$ 87 increase related to requests for offsetting federal taxes not approved
by the Federal Revenue of Brazil; and (v) US$ 53 referring to the collection of tax on services provided offshore (ISS).
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
14.4.
|
Class
action and related proceedings
|
Regarding
the class action in the Netherlands, on January 29, 2020, the District Court in Rotterdam determined that shareholders who understand
Portuguese and / or who bought shares through intermediaries or other agents who understand that language, among other shareholders,
are subject to the arbitration clause provided for in the Company's Bylaws, remaining out of the collective action proposed by the Stichting
Petrobras Compensation Foundation (“Foundation”). The Court also considered the binding effect of the agreement signed to
close the United States' Class action. In this way, the Foundation needs to demonstrate that it represents a sufficient number of investors
to justify pursuing collective action in the Netherlands. The Foundation and the Company presented the oral arguments at a hearing held
on January 26, 2021, which is pending judgment. See note 20.4.1 to the annual 2020 Financial Statements for more information.
In
relation to the arbitration in Argentina, the Argentine Supreme Court has not yet judged the appeal filed by the Association.
As
for the criminal actions in Argentina, related to an alleged fraudulent offer of securities, on September 14, 2020, the judge accepted
the defense presented by the Company and decided that Petrobras could not be sued in a criminal case before the Argentine Justice. The
Association appealed this decision, and the appeal is pending judgment. Regarding the action related to the alleged nonobservance of
the obligation to disclose a press release, on March 4, 2021, the Court decided that the competence to judge this criminal action should
be transferred from the Criminal Economic Court No. 3 of Buenos Aires to the Criminal Economic Court No. 2 in the same city.
|
14.5.
|
Arbitrations
in Brazil
|
In
the three-month period ended March 31, 2021 there were no events that changed the assessment and judgment of arbitration in Brazil.
For
more information, see note 20.4.2 to the 2020 Financial Statements.
|
14.6.
|
Tax
recoveries under dispute
|
|
14.6.1.
|
Deduction
of VAT tax (ICMS) from the basis of calculation of PIS and COFINS
|
The
Company filed complaints against Brazilian Federal Government challenging the constitutionality of the inclusion, from 2001 to 2020,
of ICMS within the calculation basis of PIS and COFINS. In 2020, the Company obtained a favorable and definitive court decision on this
claim, and the Company recognized the corresponding credit. The tax credit relates to the exclusion of the ICMS effectively collected
when included in the basis of calculation of PIS and COFINS, as deliberated by the Federal Revenue of Brazil, as set out in note 11.1.
In
relation to the amounts corresponding to the difference between the criterion established in the regulation and the ICMS amount reported
in the invoices, these were not recognized as tax credit, since it is still pending final decision of the STF.
|
15.
|
Provision
for decommissioning costs
|
Non-current
liabilities
|
Jan-Mar/2021
|
Jan-Dec/2020
|
Opening
balance
|
18,780
|
17,460
|
Adjustment
to provision
|
5
|
5,720
|
Transfers
related to liabilities held for sale (*)
|
(205)
|
(519)
|
Payments
made
|
(162)
|
(446)
|
Interest
accrued
|
180
|
571
|
Others
|
7
|
15
|
Cumulative
translation adjustment
|
(1,643)
|
(4,021)
|
Closing
balance
|
16,962
|
18,780
|
(*)
In the first quarter of 2021, it includes transfers to held for sale mainly related to US$ 109 in the concessions of Peroá
Group in Espírito Santo state and US$ 97 in Miranga Group in Bahia state. In 2020, it includes transfers to held
for sale mainly related to US$ 301 in the concessions in Rio Grande do Norte state and US$204 in Bahia state, as set out in note
24 to the 2020 Financial Statements.
|
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
16.
|
The
“Lava Jato (Car Wash) Operation” and its effects on the Company
|
The
Company has monitored the progress of investigations under the “Lava Jato” Operation and, in the preparation of these unaudited
consolidated interim financial statements for the period ended March 31, 2021, did not identify any additional information that would
affect the adopted calculation methodology to write off, in the third quarter of 2014, amounts overpaid for the acquisition of property,
plant and equipment. The Company will continue to monitor these investigations for additional information in order to assess their potential
impact on the adjustment made.
In
addition, the Company has fully cooperated with the Brazilian Federal Police (Polícia Federal), the Brazilian Public Prosecutor’s
Office (Ministério Público Federal), the Federal Auditor’s Office (Tribunal de Contas da União –
TCU) and the General Federal Inspector’s Office (Controladoria Geral da União) in the investigation of all crimes
and irregularities.
During
the period ended March 31, 2021, new leniency and plea agreements entitled the Company to receive funds with respect to compensation
for damages, in the amount of US$ 141 (US$ 21 in the same period of 2020), accounted for as other income and expenses. Thus,
the total amount recovered from Lava Jato investigation through March 31, 2021 is US$ 1,428.
|
16.1.
|
Investigations
involving the Company
|
|
16.1.1.
|
U.S.
Commodity Futures Trading Commission - CFTC
|
In
May 2019, the U.S. Commodity Futures Trading Commission (“CFTC”) contacted Petrobras with an inquiry regarding trading activities
related to the Lava Jato Operation. Petrobras reiterates that it continues to cooperate with the regulatory authorities, including the
CFTC, regarding any inquiry.
|
16.1.2.
|
Order
of civil inquiry - Brazilian Public Prosecutor’s Office
|
On
December 15, 2015, the State of São Paulo Public Prosecutor’s Office issued the Order of Civil Inquiry 01/2015, establishing
a civil proceeding to investigate the existence of potential damages caused by Petrobras to investors in the Brazilian stock market.
The Brazilian Attorney General’s Office (Procuradoria Geral da República) assessed this civil proceeding and determined
that the São Paulo Public Prosecutor’s Office has no authority over this matter, which must be presided over by the Brazilian
Public Prosecutor’s Office. The Company has provided all relevant information requested by the authorities.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
17.
|
Property,
plant and equipment
|
|
Land,
buildings
and
improvement
|
Equipment
and other assets (*)
|
Assets
under
construction
(**)
|
Exploration
and development costs (oil and gas producing properties) (***)
|
Right-of-use
assets
|
Total
|
Balance
at January 1, 2020
|
4,450
|
70,378
|
21,952
|
40,897
|
21,588
|
159,265
|
Additions
|
-
|
4,587
|
3,090
|
365
|
4,338
|
12,380
|
Additions
to / review of estimates of decommissioning costs
|
-
|
-
|
-
|
5,421
|
-
|
5,421
|
Capitalized
borrowing costs
|
-
|
-
|
941
|
-
|
-
|
941
|
Write-offs
|
(4)
|
(438)
|
(461)
|
(187)
|
(1,271)
|
(2,361)
|
Transfers
|
(258)
|
2,676
|
(3,175)
|
1,336
|
(21)
|
558
|
Transfers
to assets held for sale
|
(8)
|
(226)
|
27
|
(848)
|
(13)
|
(1,068)
|
Depreciation,
amortization and depletion
|
(142)
|
(4,298)
|
-
|
(3,864)
|
(4,022)
|
(12,326)
|
Impairment
recognition
|
(14)
|
(7,293)
|
(2,855)
|
(4,603)
|
(337)
|
(15,102)
|
Impairment
reversal
|
-
|
5,542
|
482
|
1,612
|
124
|
7,760
|
Cumulative translation
adjustment
|
(981)
|
(12,248)
|
(4,558)
|
(8,963)
|
(4,517)
|
(31,267)
|
Balance
at December 31, 2020
|
3,043
|
58,680
|
15,443
|
31,166
|
15,869
|
124,201
|
Cost
|
5,450
|
107,199
|
27,544
|
60,902
|
23,780
|
224,875
|
Accumulated
depreciation, amortization, depletion and impairment
|
(2,407)
|
(48,519)
|
(12,101)
|
(29,736)
|
(7,911)
|
(100,674)
|
Balance
at December 31, 2020
|
3,043
|
58,680
|
15,443
|
31,166
|
15,869
|
124,201
|
Additions
|
-
|
359
|
1,476
|
-
|
382
|
2,217
|
Additions
to / review of estimates of decommissioning
costs
|
-
|
-
|
-
|
(1)
|
-
|
(1)
|
Capitalized
borrowing costs
|
-
|
-
|
212
|
-
|
-
|
212
|
Write-offs
|
-
|
(3)
|
(98)
|
(14)
|
(4)
|
(119)
|
Transfers
|
265
|
(229)
|
(1,144)
|
1,158
|
-
|
50
|
Transfers
to assets held for sale
|
-
|
(1,070)
|
(107)
|
(101)
|
3
|
(1,275)
|
Depreciation,
amortization and depletion
|
(33)
|
(988)
|
-
|
(1,039)
|
(988)
|
(3,048)
|
Impairment
recognition (note 19)
|
-
|
(114)
|
-
|
(8)
|
-
|
(122)
|
Impairment
reversal (note 19)
|
-
|
-
|
27
|
-
|
-
|
27
|
Cumulative translation
adjustment
|
(270)
|
(5,115)
|
(1,304)
|
(2,686)
|
(1,361)
|
(10,736)
|
Balance
at March 31, 2021
|
3,005
|
51,520
|
14,505
|
28,475
|
13,901
|
111,406
|
Cost
|
4,976
|
95,926
|
25,166
|
55,355
|
21,874
|
203,297
|
Accumulated
depreciation, amortization, depletion and impairment (****)
|
(1,971)
|
(44,406)
|
(10,661)
|
(26,880)
|
(7,973)
|
(91,891)
|
Balance
at March 31, 2021
|
3,005
|
51,520
|
14,505
|
28,475
|
13,901
|
111,406
|
Weighted
average useful life in years
|
40
(25
to 50)
(except
land)
|
20
(3
to 31)
|
|
Units
of production method
|
8
(2
to 47)
|
|
(*)
It is composed of production platforms, refineries, thermoelectric power plants, natural gas processing plants, pipelines, and other
operating, storage and production plants, including subsea equipment for the production and flow of oil and gas, depreciated based
on the units of production method.
|
(**)
See note 24 for assets under construction by operating segment.
|
(***)
It is composed of exploration and production assets related to wells, abandonment and dismantling of areas, signature bonuses associated
with proved reserves and other costs directly associated with the exploration and production of oil and gas.
|
(****)
In the case of assets under construction, it refers only to impairment losses.
|
The
right-of-use assets comprise the following underlying assets:
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
Platforms
|
Vessels
|
Properties
|
Total
|
Balance
at March 31, 2021
|
7,266
|
5,917
|
718
|
13,901
|
Cost
|
10,411
|
10,133
|
1,330
|
21,874
|
Accumulated
depreciation, amortization and depletion
|
(3,145)
|
(4,216)
|
(612)
|
(7,973)
|
Balance
at December 31, 2020
|
7,979
|
7,167
|
723
|
15,869
|
Cost
|
11,144
|
11,256
|
1,379
|
23,779
|
Accumulated
depreciation, amortization and depletion
|
(3,165)
|
(4,089)
|
(656)
|
(7,910)
|
|
17.2.
|
Capitalization
rate used to determine the amount of borrowing costs eligible for capitalization
|
The
capitalization rate used to determine the amount of borrowing costs eligible for capitalization was the weighted average of the borrowing
costs applicable to the borrowings that were outstanding during the period, other than borrowings made specifically for the purpose of
obtaining a qualifying asset. For the three-month period ended March 31, 2021, the capitalization rate was 5.55% p.a. (6.36% p.a. for
the three-month period ended March 31, 2020).
|
Rights
and Concessions
|
Software
|
Goodwill
|
Total
|
Balance
at January 1, 2020
|
19,168
|
242
|
63
|
19,473
|
Addition
|
31
|
88
|
-
|
119
|
Capitalized
borrowing costs
|
-
|
1
|
-
|
1
|
Write-offs
|
(173)
|
(3)
|
-
|
(176)
|
Transfers
|
(2)
|
(1)
|
(26)
|
(29)
|
Amortization
|
(8)
|
(58)
|
-
|
(66)
|
Impairment
recognition
|
-
|
(6)
|
(6)
|
(12)
|
Cumulative translation
adjustment
|
(4,302)
|
(53)
|
(7)
|
(4,362)
|
Balance
at December 31, 2020
|
14,714
|
210
|
24
|
14,948
|
Cost
|
14,803
|
1,245
|
24
|
16,072
|
Accumulated
amortization and impairment
|
(89)
|
(1,035)
|
-
|
(1,124)
|
Balance
at December 31, 2020
|
14,714
|
210
|
24
|
14,948
|
Addition
|
10
|
26
|
-
|
36
|
Capitalized
borrowing costs
|
-
|
1
|
-
|
1
|
Write-offs
|
(1)
|
-
|
-
|
(1)
|
Transfers
|
(39)
|
1
|
-
|
(38)
|
Amortization
|
(2)
|
(13)
|
-
|
(15)
|
Cumulative translation
adjustment
|
(1,292)
|
(19)
|
(2)
|
(1,313)
|
Balance
at March 31, 2021
|
13,390
|
206
|
22
|
13,618
|
Cost
|
13,471
|
1,169
|
22
|
14,662
|
Accumulated
amortization and impairment
|
(81)
|
(963)
|
-
|
(1,044)
|
Balance
at March 31, 2021
|
13,390
|
206
|
22
|
13,618
|
Estimated
useful life in years
|
(*)
|
5
|
Indefinite
|
|
(*)
Mainly composed of assets with indefinite useful lives, which are reviewed annually to determine whether events and circumstances
continue to support an indefinite useful life assessment.
|
|
19.1.
|
Impairment
of property, plant and equipment and intangible assets
|
The
Company annually tests its assets for impairment or when there is an indication that their carrying amount may not be recoverable.
In
the first quarter of 2021, impairment losses were recognized, in the amount of US$ 90, mainly due to:
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
·
|
Oil
and gas production and drilling equipment in Brazil: the Company decided to discontinue the
use of P-33 platform in the Marlim field, due to the discontinuation of production and the
beginning of its decommissioning process, resulting in its exclusion of CGU North group and
its impairment testing as a separated asset, with the recognition of a US$ 122 impairment
loss; and
|
|
·
|
Oil
and gas production and drilling equipment abroad: the Company decided to use in producing
fields in the Santos basin, certain equipment that were previously part of platforms P-72
and P-73. Thus, considering estimated future cash flows for these assets, the Company recognized
a US$ 27 impairment reversal.
|
In
the first quarter of 2020, impairment losses were recognized due to the significant and adverse effects on the oil and oil products market
arising from: (i) the outbreak of the COVID-19 pandemic and its effects on the economic activity, and (ii) failure in negotiations between
members of Organization of the Petroleum Exporting Countries (OPEC) and its allies to define production levels, which contributed to
an increase in the global oil supply with a significant reduction in price in early March 2020.
These
events led the Company to adopt a set of measures, aiming at preserving cash generation, as well as to revise its key assumptions such
as Brent prices, exchange rates, oil product spreads, among others and, in the first quarter of 2020, impairment losses were recognized
in the amount of US$ 13,371, primarily due to:
(i)
US$ 11,798 relating to the effect of updated assumptions in the estimation of the recoverable amount of several E&P fields, notably
in the following Cash Generating Units (CGU): Roncador, Marlim Sul, North group, Albacora Leste, Berbigão-Sururu group, CVIT group
and Mexilhão; and
(ii)
US$ 1,356 relating to the hibernation of fields and platforms in shallow waters, affecting CGUs North group, Ceará-Mar group and
Ubarana group, as well as Caioba, Guaricema and Camorim fields.
On
November 25, 2020, management concluded and approved its 2021-2025 Strategic Plan, considering a complete update of economic assumptions,
as well as its project portfolio and estimates of reserve volumes, which support the impairment tests conducted in this reporting period.
Thus, impairment reversals were accounted for in the last quarter of 2020, in the amount of US$ 6,019, mainly on producing properties
relating to oil and gas activities in Brazil.
|
19.2.
|
Investment
in publicly traded associate (Petrobras Distribuidora S.A. – BR Distribuidora)
|
On
August 26, 2020 the Company’s Board of Directors approved the disposal of the remaining interest in this Company. Accordingly,
the recoverable value of this investment took into account the value in use, including the disposal value, considering the intention
to sell the shares. The post-tax discount rate in constant currency applied was 11% p.a., considering the cost of equity. Thus, a US$ 26
impairment loss was recognized in the first quarter of 2021.
|
20.
|
Exploration
and evaluation of oil and gas reserves
|
The
exploration and evaluation activities include the search for oil and gas reserves from the date of obtaining the legal rights to explore
a specific area to the declaration of the technical and commercial viability of the reserves.
Changes
in the balances of capitalized costs directly associated with exploratory wells pending determination of proved reserves and the balance
of amounts paid for obtaining rights and concessions for exploration of oil and natural gas (capitalized acquisition costs) are set out
in the following table:
Capitalized
Exploratory Well Costs / Capitalized Acquisition Costs (*)
|
Jan-Mar/2021
|
Jan-Dec/2020
|
Property
plant and equipment
|
|
|
Opening
Balance
|
3,024
|
4,262
|
Additions
|
88
|
428
|
Write-offs
|
(119)
|
(197)
|
Transfers
|
(72)
|
(494)
|
Cumulative
translation adjustment
|
(251)
|
(975)
|
Closing
Balance
|
2,670
|
3,024
|
Intangible
Assets
|
13,221
|
14,526
|
Capitalized
Exploratory Well Costs / Capitalized Acquisition Costs
|
15,891
|
17,550
|
(*)
Amounts capitalized and subsequently expensed in the same period have been excluded from this table.
|
|
|
Exploration
costs recognized in the statement of income and cash used in oil and gas exploration and evaluation activities are set out in the following
table:
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
2021
|
2020
|
|
Jan-Mar
|
Jan-Mar
|
Exploration
costs recognized in the statement of income
|
|
|
Geological
and geophysical expenses
|
67
|
72
|
Exploration
expenditures written off (includes dry wells and signature bonuses)
|
131
|
26
|
Contractual
penalties
|
15
|
6
|
Other
exploration expenses
|
1
|
-
|
Total
expenses
|
214
|
104
|
Cash
used in :
|
|
|
Operating
activities
|
68
|
72
|
Investment
activities
|
115
|
149
|
Total
cash used
|
183
|
221
|
|
|
|
|
21.
|
Collateral
for crude oil exploration concession agreements
|
The
Company has granted collateral to ANP in connection with the performance of the Minimum Exploration Programs established in the concession
agreements for petroleum exploration areas in the total amount of US$ 1,544 (US$ 1,631 as of December 31, 2020) of which US$ 1,464
were still in force as of March 31, 2021 (US$ 1,543 as of December 31, 2020), net of commitments undertaken. The collateral comprises
crude oil from previously identified producing fields, pledged as collateral, amounting to US$ 1,146 (US$ 1,256 as of December 31,
2020) and bank guarantees of US$ 318 (US$ 287 as of December 31, 2020).
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
22.1.
|
Investments
in associates and joint ventures
|
|
Balance
at 12.31.2020
|
Investments
|
Transfer
to assets held for sale
|
Restructuring,
capital decrease and others
|
Results
of equity-accounted investments
|
CTA
|
OCI
|
Dividends
|
Balance
at
03.31.2021
|
Joint
Ventures
|
813
|
1
|
(2)
|
-
|
46
|
(28)
|
1
|
(5)
|
826
|
Associates
(*)
|
2,455
|
1
|
-
|
1
|
137
|
(92)
|
(113)
|
(50)
|
2,339
|
Other
investments
|
5
|
-
|
-
|
−
|
−
|
(3)
|
-
|
−
|
2
|
Total
|
3,273
|
2
|
(2)
|
1
|
183
|
(123)
|
(112)
|
(55)
|
3,167
|
(*)
It includes Petrobras Distribuidora and Braskem.
|
|
23.
|
Disposal
of assets and other changes in organizational structure
|
The
Company has an active partnership and divestment portfolio, which takes into account opportunities for disposal of non-strategic assets
in several areas in which it operates, whose development of transactions also depends on conditions beyond the control of the Company.
The divestment projects and strategic partnerships follow the procedures aligned with the guidelines of the Brazilian Federal Auditor’s
Office (Tribunal de Contas da União – TCU) and the current legislation.
The
major classes of assets and related liabilities classified as held for sale are shown in the following table:
|
|
03.31.2021
|
12.31.2020
|
|
E&P
|
RT&M
|
Gas
& Power
|
Corporate
and other business
|
Total
|
Total
|
Assets
classified as held for sale
|
|
|
|
|
|
|
Cash
and cash equivalents
|
1
|
−
|
−
|
−
|
1
|
14
|
Trade
receivables
|
-
|
−
|
−
|
−
|
-
|
24
|
Inventories
|
-
|
298
|
−
|
−
|
298
|
4
|
Investments
|
-
|
−
|
19
|
−
|
19
|
68
|
Property,
plant and equipment
|
637
|
1,090
|
−
|
−
|
1,727
|
640
|
Others
|
-
|
−
|
−
|
−
|
-
|
35
|
Total
|
638
|
1,388
|
19
|
−
|
2,045
|
785
|
Liabilities
on assets classified as held for sale
|
|
|
|
|
|
|
Trade
payables
|
-
|
-
|
-
|
-
|
-
|
22
|
Finance
debt
|
-
|
-
|
-
|
1
|
1
|
13
|
Provision
for decommissioning costs
|
695
|
-
|
-
|
-
|
695
|
640
|
Others
|
-
|
-
|
-
|
-
|
-
|
10
|
Total
|
695
|
−
|
−
|
1
|
696
|
685
|
|
23.1.
|
Transactions
pending closing at March 31, 2021
|
As
of March 31, 2021, the amounts refer to (i) the remaining 10% interest in Lapa field; (ii) Sale of the Company’s entire interest
in Polo Peroá; (iii) Onshore fields in Ceará, Bahia e Espírito Santo; (iv) Eólicas Mangue Seco 1, 2, 3 and
4; and (v) RLAM Refinery.
The
most significant progress under the divestment process is describe below:
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
Transaction
|
Acquirer
|
Signature
date
|
Transaction
amount (*)
|
Further
information
|
Sale
of E&P assets in the state of Espírito Santo (Polo Peroá).
|
OP
Energy e DBO Energy
|
January
2021
|
13
|
a
|
Sale
of the Company’s entire interest in nine onshore fields, called Miranda group, in the in the state of Bahia.
|
Miranga
S.A. (structured entity), subsidiary of
PetroRecôncavo
S.A.
|
February
2021
|
135
|
b
|
Sale
of the Company’s 51% interest in the company Eólica Mangue Seco 2 - Geradora e Comercializadora de Energia Elétrica
S.A. (“Eólica Mangue Seco 2), wind power generation plant.
|
Fundo
de Investimento em Participações Multiestratégia Pirineus (FIP Pirineus)
|
February
2021
|
6
(R$
33 million)
|
c
|
Sale
of the Company's shares that will hold the Landulpho Alves Refinery (RLAM) and its associated logistics assets, in the state of Bahia
|
MC
Brazil Downstream Participações, a company of the Mubadala Capital group
|
March
2021
|
1,650
|
d
|
(*)
Only amounts considered at the signing of the transaction.
|
a)
Sale of E&P assets in Espírito Santo (Polo Peroá)
Amounts
due to Petrobras are composed of: (i) US$ 5 was paid at the contract signing; (ii) US$ 8 to be paid at the transaction closing;
(iii) up to US$ 42 as contingent payments provided for in the contract, related to factors such as Malombe's declaration of
commerciality, future oil prices and extension of the concession terms. This transaction is subject to price adjustments and to the fulfillment
of conditions precedent, such as approval by the ANP.
b)
Sale of onshore fields in Bahia
Amounts
due to Petrobras are composed of: (i) US$ 11 paid upon the contract signing; (ii) US$ 44 to be paid at the transaction closing;
(iii) US$ 80 deferred in three installments over three years from the transaction closing.
The
contract provides for the payment of conditional amounts of up to US$ 85 in contingent payments related to future average Brent
prices for the years 2022, 2023 and 2024.
This
transaction includes price adjustments and is still subject to conditions precedent, such as approval by the ANP.
c)
Sale of Eólica Mangue Seco 2
Amount
to be paid to Petrobras in a single installment at the transaction closing, subject to price adjustments provided for in the contract.
The transaction results from the exercise of the preemptive right by FIP Pirineus, in accordance with the shareholders' agreement of
Eólica Mangue Seco 2.
This
sale is subject to price adjustments and to the fulfillment of conditions precedent, such as approval by Banco do Nordeste do Brasil,
resource provider of the wind farm development, and by the Administrative Council for Economic Defense (CADE).
d)
Sale of the RLAM refinery
The
agreement provides for price adjustment due to changes in working capital, net debt and investments until the transaction closing, and
is subject to conditions precedent, such as approval by the CADE.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
23.2.
|
Closed
transactions in the three-month period ended March 31, 2021
|
Transaction
|
Acquirer
|
Signature
date (S)
Closing
date (C)
|
Sale
amount (*)
|
Gain/(loss)
(**)
|
Further
information
|
|
Sale
of 30% of the Frade field concession. The transaction also includes the sale of the entire stake held by the subsidiary Petrobras
Frade Inversiones S.A. (PFISA), in the company Frade BV.
|
PetroRio
|
November
2019 (S)
February
2021 (C)
|
44
|
88
|
a
|
|
Sale of the
Company’s entire interest in Petrobras Uruguay Distribución S.A. (PUDSA).
|
DISA
Corporación Petrolífera S.A.
|
August
2020 (S)
February
2021 (C)
|
68
|
(3)
|
b
|
|
Petrobras
Biocombustível S.A. (PBio) signed a contract for the sale of all of its shares issued by BSBios Indústria e Comércio
de Biodiesel Sul Brasil S.A. (BSBios) (50% of the share capital).
|
RP
Participações em Biocombustíveis S.A
|
December
2020 (S)
February
2021 (C)
|
60
(R$
322 million)
|
1
|
c
|
|
|
|
|
172
|
86
|
|
|
(*)
The amount of "Proceeds from disposal of assets" in the Statement of Cash Flows is composed of amounts received this period,
including installments of operations from previous years and advances referring to operations not completed.
|
(**)
Recognized in “Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control”
within Other income and expenses (note 6).
|
a)
Sale of the Frade field
The
operation was concluded with the payment of US$ 36 to Petrobras, after price adjustments (including cash inflows from the sale of crude
oil from the concession), in addition to US$ 8 paid to Petrobras upon the contract signing. In addition, there is a contingent amount
of US$ 20 linked to a potential new commercial discovery in the field.
The
original sale amounting to US$ 100 was adjusted considering the cash flows arising from the Company’s interest in the block from
July 1, 2019 (inception date of the negotiation) to February 5, 2021 (closing date). In addition, there is a contingent payment amounting
to US$ 20 subject to a new discovery in the field.
b)
Sale of Petrobras Uruguay Distribución S.A. (PUDSA)
The
transaction was concluded with the payment of US$ 62 to Petrobras, in addition to US$ 6 paid upon the contract signing, totaling US$
68. As a result of this operation, a US$ 34 loss was reclassified to the statement of income, within other income and expenses, relating
to cumulative translation adjustments arising from exchange rate variations recognized in PUDSA's shareholders' equity since de acquisition
of this investment.
c)
Sale of BSBios
The
transaction was concluded with the payment of US$ 47 to Petrobras, including price adjustments. In addition to this amount, US$
12 is held in an escrow account for indemnification of eventual contingencies, to be released according to terms and conditions set forth
in the contract, and US$ 1 was received in advance as interest on capital in December 2020, totaling US$ 60.
On
January 5, 2021, Petrobras acquired 100% of shares of the structured entity Companhia de Desenvolvimento e Modernização
de Plantas Industriais (CDMPI) for US$ 9 thousand. The difference between the amount paid and CDMPI's negative shareholders' equity,
in the amount of US$ 691, was registered as a capital transaction, reducing the shareholders' equity attributable to shareholders
of Petrobras, while increasing non-controlling interests, since Petrobras already controlled its operations prior to this transaction.
On April 14, 2021, an Extraordinary General Shareholders Meeting approved the incorporation of CDMPI.
|
23.4.
|
Cash
flows from sales of interest with loss of control
|
In
the three-month periods ended March 31, 2021 and 2020, the Company disposed of its interest in certain subsidiaries over which control
was lost. The following table summarizes cash flows arising from losing control in subsidiaries:
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
Cash received
|
Cash
in subsidiary before losing control
|
Net
Proceeds
|
Jan-Mar/2021
|
|
|
|
PUDSA
|
62
|
(15)
|
47
|
Total
|
62
|
(15)
|
47
|
Jan-Mar/2020
|
|
|
|
Petrobras
Oil & Gas B.V.(PO&GBV)
|
276
|
−
|
276
|
Total
|
276
|
−
|
276
|
|
24.
|
Assets
by operating segment
|
|
Exploration
and Production
|
Refining,
Transportation & Marketing
|
Gas
&
Power
|
Corporate
and other business
|
Elimina-tions
|
Total
|
|
|
|
|
|
|
|
Consolidated
assets by operating segment - 03.31.2021
|
|
|
|
|
|
|
|
Current
assets
|
3,459
|
12,950
|
2,156
|
13,857
|
(5,397)
|
27,025
|
Non-current
assets
|
104,332
|
20,044
|
7,414
|
16,405
|
−
|
148,195
|
Long-term
receivables
|
4,430
|
1,776
|
746
|
13,052
|
−
|
20,004
|
Investments
|
405
|
488
|
581
|
1,693
|
−
|
3,167
|
Property,
plant and equipment
|
86,213
|
17,691
|
5,974
|
1,528
|
−
|
111,406
|
Operating
assets
|
76,485
|
15,354
|
3,797
|
1,265
|
−
|
96,901
|
Under
construction
|
9,727
|
2,337
|
2,177
|
264
|
−
|
14,505
|
Intangible
assets
|
13,284
|
89
|
113
|
132
|
−
|
13,618
|
Total
Assets
|
107,791
|
32,994
|
9,570
|
30,262
|
(5,397)
|
175,220
|
|
|
|
|
|
|
|
Consolidated
assets by operating segment - 12.31.2020
|
|
|
|
|
|
|
|
Current
assets
|
5,333
|
8,170
|
1,975
|
15,337
|
(3,427)
|
27,388
|
Non-current
assets
|
114,947
|
23,879
|
8,321
|
15,473
|
2
|
162,622
|
Long-term
receivables
|
4,745
|
2,539
|
976
|
11,938
|
2
|
20,200
|
Investments
|
390
|
400
|
607
|
1,876
|
−
|
3,273
|
Property,
plant and equipment
|
95,222
|
20,842
|
6,614
|
1,523
|
−
|
124,201
|
Operating
assets
|
84,916
|
18,304
|
4,300
|
1,238
|
−
|
108,758
|
Under
construction
|
10,305
|
2,537
|
2,315
|
286
|
−
|
15,443
|
Intangible
assets
|
14,590
|
98
|
124
|
136
|
−
|
14,948
|
Total
Assets
|
120,280
|
32,049
|
10,296
|
30,810
|
(3,425)
|
190,010
|
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
25.1.
|
Balance
by type of finance debt
|
In
Brazil
|
03.31.2021
|
12.31.2020
|
Banking
Market
|
3,750
|
5,016
|
Capital
Market
|
2,323
|
2,512
|
Development
banks
|
1,149
|
1,315
|
Others
|
9
|
11
|
Total
|
7,231
|
8,854
|
Abroad
|
|
|
Banking
Market
|
13,609
|
13,581
|
Capital
Market
|
26,070
|
27,625
|
Development
banks
|
-
|
201
|
Export
Credit Agency
|
3,210
|
3,424
|
Others
|
197
|
203
|
Total
|
43,086
|
45,034
|
Total
finance debt
|
50,317
|
53,888
|
Current
|
3,292
|
4,186
|
Non-current
|
47,025
|
49,702
|
Current finance debt
is composed of:
|
03.31.2021
|
03.31.2020
|
Short-term
debt
|
338
|
1,140
|
Current
portion of long-term debt
|
2,408
|
2,383
|
Accrued
interest on short and long-term debt
|
546
|
663
|
Total
|
3,292
|
4,186
|
At
March 31, 2021, there was no default, breach of covenants or change in collateral provided or clauses that would result in change in
payment terms compared December 31, 2020.
|
25.2.
|
Changes
in finance debt and reconciliation with cash flows from financing activities
|
|
Balance
at 12.31.2019
|
Additions
|
Principal
amorti zation (*)
|
Interest
amorti zation (*)
|
Accrued
interest (**)
|
Foreign
exchange/ inflation indexation charges
|
Cumulative
translation adjustment (CTA)
|
Modification
of contractual cash flows
|
Transfer
to liabilities classified as held for sale
|
Balance
at 12.31.2020
|
In
Brazil
|
10,730
|
1,488
|
(1,080)
|
(352)
|
399
|
142
|
(2,473)
|
-
|
-
|
8,854
|
Abroad
|
52,530
|
15,535
|
(23,471)
|
(2,967)
|
3,187
|
1,667
|
(1,201)
|
(245)
|
-
|
45,035
|
|
63,260
|
17,023
|
(24,551)
|
(3,319)
|
3,586
|
1,809
|
(3,674)
|
(245)
|
−
|
53,889
|
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
Balance
at
12.31.2020
|
Additions
|
Principal
amorti zation (*)
|
Interest
amorti zation (*)
|
Accrued
interest (**)
|
Foreign
exchange/ inflation indexation charges
|
Cumulative
translation adjustment (CTA)
|
Modification
of contractual cash flows
|
Transfer
to liabilities classified as held for sale
|
Balance
at 03.31.2021
|
In
Brazil
|
8,854
|
-
|
(940)
|
(83)
|
81
|
89
|
(507)
|
-
|
-
|
7,231
|
Abroad
|
45,035
|
54
|
(1,940)
|
(635)
|
627
|
425
|
865
|
(2)
|
-
|
43,086
|
|
53,889
|
54
|
(2,880)
|
(718)
|
708
|
514
|
358
|
(2)
|
−
|
50,317
|
Debt
restructuring
|
|
|
(183)
|
-
|
|
|
|
|
|
|
Deposits
linked to financing
|
|
|
-
|
(361)
|
|
|
|
|
|
|
Net
cash used in financing activities
|
|
(3,063)
|
(1,079)
|
|
|
|
|
|
|
(*) It includes pre-payments.
|
|
(**) It includes
premium and discount over notional amounts, as well as gains and losses by modifications in contractual cash flows.
|
|
For
the three-month period ended March 31, 2021, the Company used its cash to settle older debts and manage liabilities, aiming at improving
the debt repayment profile taking into account its alignment with investments returns over the long run, and also to have cash reserve
to maintain the Company’s liquidity.
The
Company repaid several finance debts, in the amount of US$ 4,142 notably: (i) prepayment of banking loans in the domestic and international
market totaling US$ 100 and (ii) US$ 1,427 to repurchase of global bonds previously issued by the Company in the capital market,
with net premium paid to bond holders amounting to US$ 183; and (iii) total prepayment of US$ 224 for loans with development
agencies.
|
25.3.
|
Summarized
information on current and non-current finance debt
|
Maturity
in
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
onwards
|
Total
(**)
|
Fair
Value
|
|
|
|
|
|
|
|
|
|
Financing
in U.S.Dollars (US$)(*):
|
2,279
|
2,193
|
3,659
|
4,355
|
5,260
|
21,869
|
39,615
|
42,744
|
Floating
rate debt
|
1,900
|
2,193
|
2,744
|
3,576
|
4,286
|
2,041
|
16,740
|
|
Fixed
rate debt
|
379
|
-
|
915
|
779
|
974
|
19,828
|
22,875
|
|
Average
interest rate
|
4.8%
|
4.8%
|
4.8%
|
5.2%
|
5.3%
|
6.6%
|
6.1%
|
|
Financing
in Brazilian Reais (R$):
|
494
|
1,085
|
1,586
|
1,416
|
368
|
2,282
|
7,231
|
7,464
|
Floating
rate debt
|
354
|
850
|
1,451
|
1,091
|
294
|
791
|
4,831
|
|
Fixed
rate debt
|
140
|
235
|
135
|
325
|
74
|
1,491
|
2,400
|
|
Average
interest rate
|
3.4%
|
4.7%
|
6.0%
|
5.2%
|
4.4%
|
4.3%
|
4.5%
|
|
Financing
in Euro (€):
|
33
|
-
|
337
|
14
|
510
|
704
|
1,598
|
1,806
|
Fixed
rate debt
|
33
|
-
|
337
|
14
|
510
|
704
|
1,598
|
|
Average
interest rate
|
4.6%
|
-
|
4.6%
|
4.7%
|
4.7%
|
4.7%
|
4.7%
|
|
Financing
in Pound Sterling (£):
|
35
|
-
|
-
|
-
|
-
|
1,838
|
1,873
|
2,102
|
Fixed
rate debt
|
35
|
-
|
-
|
-
|
-
|
1,838
|
1,873
|
|
Average
interest rate
|
6.2%
|
-
|
-
|
-
|
-
|
6.4%
|
6.3%
|
|
Total
as of March 31, 2021
|
2,841
|
3,278
|
5,582
|
5,785
|
6,138
|
26,693
|
50,317
|
54,116
|
Average
interest rate
|
4.6%
|
4.9%
|
5.0%
|
5.2%
|
5.3%
|
6.5%
|
6.0%
|
|
Total
as of December 31, 2020
|
4,186
|
3,282
|
5,892
|
5,961
|
6,229
|
28,338
|
53,888
|
61,517
|
Average
interest rate
|
4.6%
|
4.8%
|
4.8%
|
5.1%
|
5.2%
|
6.4%
|
5.9%
|
|
(*)
Includes debt raised in Brazil (in Brazilian reais) indexed to the U.S. dollar.
|
(**)The
average maturity of outstanding debt as of March 31, 2021 is 11.84 years (11.71 years as of December 31, 2020).
|
The
fair value of the Company's finance debt is mainly determined and categorized into a fair value hierarchy as follows:
Level
1- quoted prices in active markets for identical liabilities, when applicable, amounting to US$ 28,666 of March 31, 2021 (US$ 33,236
of December 31, 2020); and
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
Level
2 – discounted cash flows based on discount rate determined by interpolating spot rates considering financing debts indexes proxies,
taking into account their currencies and also Petrobras’ credit risk, amounting to US$ 25,450 as of March 31, 2021 (US$ 28,281
as of December 31, 2020).
The
sensitivity analysis for financial instruments subject to foreign exchange variation is set out in note 29.3.
A
maturity schedule of the Company’s finance debt (undiscounted), including face value and interest payments is set out as follows:
Maturity
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
and thereafter
|
03.31.2021
|
03.31.2020
|
Principal
|
2,361
|
3,263
|
5,495
|
6,053
|
6,252
|
28,113
|
51,537
|
55,130
|
Interest
|
1,660
|
2,247
|
2,096
|
1,938
|
1,727
|
27,178
|
36,847
|
38,953
|
Total
|
4,021
|
5,510
|
7,591
|
7,991
|
7,979
|
55,291
|
88,384
|
94,083
|
(*)
A maturity schedule of the lease arrangements (nominal amounts) is set out in note 26.
|
|
|
|
|
|
|
Amount
|
Company
|
Financial
institution
|
Date
|
Maturity
|
Available
(Lines
of Credit)
|
Used
|
Balance
|
Abroad
|
|
|
|
|
|
|
PGT
BV
|
Syndicate
of banks
|
3/7/2018
|
2/7/2023
|
4,350
|
−
|
4,350
|
PGT
BV
|
Syndicate
of banks
|
3/27/2019
|
2/27/2024
|
3,250
|
−
|
3,250
|
PGT
BV
|
The
Export - Import Bank of China
|
12/23/2019
|
12/27/2021
|
750
|
714
|
36
|
Total
|
|
|
|
8,350
|
714
|
7,636
|
|
|
|
|
|
|
|
In
Brazil
|
|
|
|
|
|
|
Petrobras
|
Banco
do Brasil
|
3/23/2018
|
1/26/2023
|
351
|
−
|
351
|
Petrobras
|
Bradesco
|
6/1/2018
|
5/31/2023
|
351
|
351
|
−
|
Petrobras
|
Banco
do Brasil
|
10/4/2018
|
9/5/2025
|
351
|
−
|
351
|
Transpetro
|
Caixa
Econômica Federal
|
11/23/2010
|
Not
defined
|
58
|
−
|
58
|
Total
|
|
|
|
1,111
|
351
|
760
|
|
|
|
|
|
|
|
The
Company is the lessee in agreements primarily including oil and gas producing units, drilling rigs and other exploration and production
equipment, vessels and support vessels, helicopters, lands and buildings.
Changes
in the balance of lease liabilities are presented below:
|
Balance
at 12.31.2020
|
Remeasurement
/ new contracts
|
Payment
of principal and interest (*)
|
Interest
expenses
|
Foreign
exchange gains and losses
|
Cumulative
translation adjustment
|
Transfers
|
Balance
at 03.31.2021
|
In
Brazil
|
4,340
|
61
|
(373)
|
45
|
237
|
(380)
|
(1)
|
3,929
|
Abroad
|
17,310
|
257
|
(1,094)
|
255
|
1,510
|
(1,508)
|
(10)
|
16,720
|
Total
|
21,650
|
318
|
(1,467)
|
300
|
1,747
|
(1,888)
|
(11)
|
20,649
|
A
maturity schedule of the lease arrangements (nominal amounts) is set out as follows:
Nominal
Future Payments
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
onwards
|
Total
|
Balance
at March 31, 2021
|
4,196
|
4,517
|
2,971
|
2,248
|
1,818
|
11,938
|
27,688
|
Balance
at December 31, 2020
|
5,756
|
4,310
|
2,896
|
2,250
|
1,825
|
11,983
|
29,020
|
Payments
in certain lease agreements vary due to changes in facts or circumstances occurring after their inception other than the passage of time.
Such payments are not included in the measurement of the lease obligations. Variable lease payments in the first quarter of 2021 amounted
to US$ 185, representing 13% in relation to fixed payments (US$ 785 and 13% in the same period of 2020).
In
the first quarter of 2021, the Company recognized lease expenses in the amount of US$ 23 relating to short-term leases (US$ 59
in the same period of 2020).
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
At
March 31, 2021, the nominal amounts of lease agreements for which the lease term has not commenced, as they relate to assets under construction
or not yet available for use, is US$ 80,293 (US$ 67,408 at December 31, 2020). The increase in the first quarter of 2021 basically
corresponds to the devaluation of the Brazilian Real against the US Dollar in the period, as well as the inclusion of a new contractual
commitment to lease a floating production unit.
The
sensitivity analysis of financial instruments subject to exchange variation is presented in note 29.3.
|
27.1.
|
Share
capital (net of share issuance costs)
|
As
of March 31, 2021 and 2020, subscribed and fully paid share capital, net of issuance costs, was US$ 107,101, represented by 7,442,454,142
common shares and 5,602,042,788 preferred shares, all of which are registered, book-entry shares with no par value.
Preferred
shares have priority on returns of capital, do not grant any voting rights and are non-convertible into common shares.
As
of March 31, 2021 and December 31, 2020, the Company held treasury shares, of which 222,760 are common shares and 72,909 are preferred
shares.
|
27.2.
|
Distributions
to shareholders
|
Proposed
distribution to shareholders relating to 2020 amounts to US$ 1,977 (corresponding to 0.1515 per outstanding share), including the
minimum mandatory dividend to preferred shareholders (US$ 849) and the additional dividends proposed (US$ 1,128) to ordinary shareholders,
arising from the remaining portion of the net income for the year and the profit retention reserve.
On
April 14, 2021, the Annual General Shareholders Meeting approved dividends relating to 2021. Thus, additional dividends proposed to ordinary
shareholders in the amount of US$ 1,128 were reclassified from shareholder’s equity to liabilities.
On
April 29, 2021, dividends were paid, in the amount of US$ 1,990, updated by Selic rate (Brazilian short-term interest rate) since
December 31, 2020.
|
27.3.
|
Earnings
(losses) per share
|
|
|
Jan-Mar/2021
|
|
Jan-Mar/2020
|
|
Common
|
Preferred
|
Total
|
Common
|
Preferred
|
Total
|
Net
income (loss) attributable to shareholders of Petrobras
|
103
|
77
|
180
|
(5,543)
|
(4,172)
|
(9,715)
|
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 (losses) per share - in U.S. dollars
|
0.01
|
0.01
|
0.01
|
(0.74)
|
(0.74)
|
(0.74)
|
Basic
and diluted earnings (losses) per ADS equivalent - in U.S. dollars (*)
|
0.02
|
0.02
|
0.02
|
(1.48)
|
(1.48)
|
(1.48)
|
(*)
Petrobras' ADSs are equivalent to two shares.
|
Basic
earnings (losses) per share are calculated by dividing the net income (loss) attributable to shareholders of Petrobras by the weighted
average number of outstanding shares during the period.
Diluted
earnings (losses) per share are calculated by adjusting the net income (loss) 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 (losses) are identical as the Company has no potential shares in issue.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
28.
|
Fair
value of financial assets and liabilities
|
|
|
|
|
Level
I
|
Level
II
|
Level
III
|
Total
fair
value
recorded
|
Assets
|
|
|
|
|
Marketable
securities
|
575
|
-
|
-
|
575
|
Foreign
currency derivatives
|
-
|
69
|
-
|
69
|
Interest
rate derivatives
|
-
|
11
|
-
|
11
|
Balance
at March 31, 2021
|
575
|
80
|
-
|
655
|
Balance
at December 31, 2020
|
652
|
115
|
−
|
767
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Foreign
currency derivatives
|
-
|
(258)
|
-
|
(258)
|
Commodity
derivatives
|
(1)
|
−
|
-
|
(1)
|
Balance
at March 31, 2021
|
(1)
|
(258)
|
-
|
(259)
|
Balance
at December 31, 2020
|
(10)
|
(269)
|
−
|
(279)
|
|
|
|
|
|
The
estimated fair value for the Company’s long-term debt, computed based on the prevailing market rates, is set out in note 25.
Certain
receivables are classified as fair value through profit or loss, as presented in note 9.
The
fair values of cash and cash equivalents, short-term debt and other financial assets and liabilities are equivalent or do not differ
significantly from their carrying amounts.
|
29.1.
|
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 March 31, 2021 , as well as the amounts recognized in the statement of income and other comprehensive income and the guarantees
given is set out as follows:
|
|
Statement
of Financial Position
|
|
|
|
|
Fair
value
|
|
|
Notional
value
|
Asset
Position (Liability)
|
Maturity
|
|
03.31.2021
|
12.31.2020
|
03.31.2021
|
12.31.2020
|
|
Derivatives
not designated for hedge accounting
|
|
|
|
|
|
Future
contracts - total (*)
|
(122)
|
(240)
|
(1)
|
(10)
|
|
Long
position/Crude oil and oil products
|
2,435
|
3,927
|
-
|
-
|
2021
|
Short
position/Crude oil and oil products
|
(2,557)
|
(4,167)
|
-
|
-
|
2021
|
Forward
contracts
|
|
|
|
|
|
Long
position/Foreign currency forwards (BRL/USD) (**)
|
20
|
-
|
-
|
-
|
2021
|
Long
position/Foreign currency forwards (GPB/USD) (**)
|
GBP
354
|
GBP
354
|
27
|
23
|
2021
|
Swap
|
|
|
|
|
|
Foreign
currency / Cross-currency Swap (**)
|
GBP
615
|
GBP
615
|
42
|
44
|
2026
|
Foreign
currency / Cross-currency Swap (**)
|
GBP
600
|
GBP
600
|
(15)
|
(26)
|
2034
|
Swap
- IPCA
|
R$
3,008
|
R$
3,008
|
11
|
47
|
2029/2034
|
Foreign
currency / Cross-currency Swap (**)
|
US$
729
|
US$
729
|
(243)
|
(244)
|
2024/2029
|
Total
recognized in the Statement of Financial Position
|
|
|
(179)
|
(166)
|
|
|
|
|
|
|
|
(*)
Notional value in thousands of bbl.
|
(**)
Amounts in US$, GBP and EUR are presented in million.
|
|
|
|
|
|
|
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
Gains/
(losses) recognized in the statement of income
|
|
Jan-Mar/2021
|
Jan-Mar/2020
|
Commodity
derivatives
|
|
|
Other
commodity derivative transactions - 29.2 (a)
|
(23)
|
223
|
Recognized
in Other Income and Expenses
|
(23)
|
223
|
Currency
derivatives
|
|
−
|
Swap
Pounds Sterling x Dollar - 29.3 (b)
|
29
|
(335)
|
NDF
– Euro x Dollar - 29.3 (b)
|
−
|
(73)
|
NDF
– Pounds Sterling x Dollar - 29.3 (b)
|
4
|
(23)
|
Swap
CDI x Dollar - 29.3 (b)
|
(28)
|
(246)
|
Others
|
1
|
(2)
|
|
6
|
(679)
|
Interest
rate derivatives
|
|
|
Swap
- CDI X IPCA
|
(28)
|
(55)
|
|
(28)
|
(55)
|
Cash
flow hedge on exports (*)
|
(1,113)
|
(1,400)
|
Recognized
in Net finance income (expense)
|
(1,135)
|
(2,134)
|
Total
|
(1,158)
|
(1,911)
|
|
|
|
(*)
As presented in note 29.3
|
|
|
|
Gains/
(losses) recognized in other comprehensive income
|
|
Jan-Mar/2021
|
Jan-Mar/2020
|
Cash
flow hedge on exports (*)
|
(4,455)
|
(20,959)
|
|
|
|
(*)
As presented in note 29.3
|
|
|
|
Guarantees
given as collateral
|
|
03.31.2021
|
12.31.2020
|
Commodity
derivatives
|
32
|
13
|
Currency
derivatives
|
23
|
78
|
Total
|
56
|
91
|
A
sensitivity analysis of the derivative financial instruments for the different types of market risks as of March 31, 2021 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
|
-
|
(10)
|
(20)
|
Forward
contracts
|
Foreign
currency - depreciation BRL x USD
|
1
|
(5)
|
(10)
|
|
|
1
|
(15)
|
(30)
|
(*)
The probable scenario was computed based on the fair value of oil and oil products prices at March 31, 2021. Reasonably possible
and remote scenarios consider 25% and 50% deterioration in the associated risk variables, respectively; R$ x U.S. Dollar - a 3.5%
appreciation of the Real.
|
|
29.2.
|
Risk
management of crude oil and oil 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.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
29.3.
|
Foreign
exchange risk management
|
|
a)
|
Cash
Flow Hedge involving the Company’s future exports
|
The
carrying amounts, the fair value as of March 31, 2021, 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$ 5.6973 exchange rate
are set out below:
|
|
|
|
|
|
Present
value of hedging instrument at
03.31.2021
|
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
|
April
2021 to March 2031
|
63,644
|
362,596
|
Changes
in the present value of hedging instrument
|
US$
|
R$
million
|
Amounts
designated as of January 1, 2021
|
61,502
|
319,608
|
Additional
hedging relationships designated, designations revoked and hedging instruments re-designated
|
8,281
|
46,155
|
Exports
affecting the statement of income
|
(3,285)
|
(17,775)
|
Principal
repayments / amortization
|
(2,854)
|
(15,913)
|
Foreign
exchange variation
|
-
|
30,521
|
Amounts
designated as of March 31, 2021
|
63,644
|
362,596
|
Nominal
value of hedging instrument (finance debt and lease liability) at March 31, 2021
|
68,981
|
393,005
|
According
to the 2021-2025 Strategic Plan, there is an increase in expected exports and consequently in highly probable future exports, but not
in an amount equal to or greater than the finance debt and lease liabilities subject to designation as hedge instruments. As a result,
the relevant increase in Dollar/Real exposure observed during 2020 remains at March 31, 2021, as presented in item (c) below.
In
the first quarter of 2021, the Company recognized a US$ 1 loss within foreign exchange gains (losses) due to ineffectiveness (a
US$ 1 loss in the same period of 2020).
The
average ratio of future exports for which cash flow hedge accounting was designated to the highly probable future exports is 100%.
A
roll-forward schedule of cumulative foreign exchange losses recognized in other comprehensive income as of March 31, 2021 is set out
below:
|
Exchange
rate variation
|
Tax
effect
|
Total
|
Balance
at January 1,2020
|
(20,517)
|
6,977
|
(13,540)
|
Recognized
in Other comprehensive income
|
(21,460)
|
7,296
|
(14,164)
|
Reclassified
to the statement of income - occurred exports
|
4,172
|
(1,419)
|
2,753
|
Reclassified
to the statement of income - exports no longer expected or not occurred
|
548
|
(187)
|
361
|
Balance
at December 31, 2020
|
(37,257)
|
12,667
|
(24,590)
|
Recognized
in Other comprehensive income
|
(5,591)
|
1,901
|
(3,690)
|
Reclassified
to the statement of income - occurred exports
|
1,113
|
(378)
|
735
|
Balance
at March 31, 2021
|
(41,735)
|
14,190
|
(27,545)
|
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 our Strategic Plan 2021-2025, would not indicate a reclassification adjustment 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 March 31, 2021 is set out below:
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
2022
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
to 2030
|
Total
|
Expected
realization
|
(6,113)
|
(7,983)
|
(6,661)
|
(5,234)
|
(3,745)
|
(3,364)
|
(3,454)
|
(5,181)
|
(41,735)
|
|
|
|
|
|
|
|
|
|
|
|
b)
|
Information
on ongoing contracts
|
As
of March 31, 2021, the company has outstanding swap contracts - IPCA x CDI and CDI x Dollar, swap - Pound sterling x Dollar and Non Deliverable
Forward (NDF) - Pound x Dollar.
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. A
sensitivity analysis on CDI with a constant increase (parallel shock) of 100 basis points, all other variables remaining constant, would
result in a US$ 5 gain, while a constant reduction (parallel shock) of 100 basis points, would result in a US$ 11 gain.
|
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 stressed scenarios (a 25% and a 50% change in the foreign exchange rates), except for assets and liabilities
of foreign subsidiaries, when transacted in a currency equivalent to their respective functional currencies.
Financial
Instruments
|
Exposure
at 03.31.2021
|
Risk
|
Probable
Scenario (*)
|
Reasonably
possible
scenario
|
Remote
Scenario
|
Assets
|
5,803
|
|
(201)
|
1,451
|
2,902
|
Liabilities
|
(102,446)
|
Dollar/Real
|
3,548
|
(25,612)
|
(51,223)
|
Exchange
rate - Cross currency swap
|
(528)
|
|
18
|
(132)
|
(264)
|
Cash
flow hedge on exports
|
63,644
|
|
(2,204)
|
15,911
|
31,822
|
|
(33,527)
|
|
1,161
|
(8,382)
|
(16,763)
|
Assets
|
3
|
Euro/Real
|
−
|
1
|
2
|
Liabilities
|
(27)
|
|
1
|
(7)
|
(14)
|
|
(24)
|
|
1
|
(6)
|
(12)
|
Assets
|
1,617
|
Euro/Dollar
|
21
|
404
|
808
|
Liabilities
|
(3,228)
|
|
(42)
|
(807)
|
(1,614)
|
|
(1,611)
|
|
(21)
|
(403)
|
(806)
|
Assets
|
4
|
Pound/Real
|
−
|
1
|
2
|
Liabilities
|
(23)
|
|
1
|
(6)
|
(12)
|
|
(19)
|
|
1
|
(5)
|
(10)
|
Assets
|
1,916
|
Pound/Dollar
|
28
|
479
|
958
|
Liabilities
|
(3,763)
|
|
(54)
|
(941)
|
(1,882)
|
Derivative
- cross currency swap
|
1,676
|
|
24
|
419
|
838
|
Non
Deliverable Forward (NDF)
|
488
|
|
7
|
122
|
244
|
|
317
|
|
5
|
79
|
158
|
Total
at March 31, 2021
|
(34,864)
|
|
1,147
|
(8,717)
|
(17,433)
|
Total
at December 31, 2020
|
(43,263)
|
|
384
|
(10,815)
|
(21,631)
|
(*)
At March 31, 2021, the probable scenario was computed based on the following risks: R$ x U.S. Dollar - a 3.5% appreciation
of the Real; Yen x Dollar - a 2.4% appreciation of the Yen; Euro x U.S. Dollar: a 1.3% appreciation of the
Euro; Pound Sterling x U.S. Dollar: a 1.49% apppreciation of the Pound Sterling; Real x Euro: a 2.2% appreciation of the Real; and
Real x Pound Sterling - a 2% appreciation of the Real. Source: Focus and Thomson Reuters.
|
|
29.4.
|
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.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
Risk
|
|
Probable
Scenario (*)
|
Reasonably
possible
scenario
|
Remote
Scenario
|
LIBOR
1M
|
|
10
|
12
|
14
|
LIBOR
3M
|
|
11
|
12
|
14
|
LIBOR
6M
|
|
401
|
449
|
498
|
CDI
|
|
123
|
154
|
185
|
TJLP
|
|
76
|
95
|
114
|
IPCA
|
|
73
|
91
|
110
|
|
|
694
|
813
|
935
|
(*)
The probable scenario was calculated considering the quotations of currencies and floating rates to which the debts are indexed.
|
|
29.5.
|
Liquidity
risk management
|
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.
|
30.
|
Related-party
transactions
|
The
Company has a related-party transactions policy, which is annually revised and approved by the Board of Directors in accordance with
the Company’s by-laws.
|
30.1.
|
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:
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
|
03.31.2021
|
|
12.31.2020
|
|
|
|
|
|
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
Joint
ventures and associates
|
|
|
|
|
Petrobras
Distribuidora (BR)
|
154
|
49
|
196
|
39
|
Natural
Gas Transportation Companies
|
57
|
199
|
74
|
191
|
State-controlled
gas distributors (joint ventures)
|
189
|
49
|
225
|
68
|
Petrochemical
companies (associates)
|
9
|
12
|
17
|
9
|
Other
associates and joint ventures
|
113
|
31
|
152
|
120
|
Subtotal
|
522
|
340
|
664
|
427
|
Brazilian
government – Parent and its controlled entities
|
|
|
|
|
Government
bonds
|
1,353
|
-
|
1,632
|
-
|
Banks
controlled by the Brazilian Government
|
7,119
|
3,177
|
7,676
|
3,707
|
Receivables
from the Electricity sector
|
167
|
−
|
205
|
−
|
Petroleum
and alcohol account - receivables from the Brazilian Government
|
450
|
-
|
482
|
-
|
Brazilian
Federal Government - dividends
|
2
|
−
|
2
|
−
|
Empresa
Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A. –
PPSA
|
-
|
19
|
−
|
−
|
Others
|
20
|
30
|
38
|
47
|
Subtotal
|
9,111
|
3,226
|
10,035
|
3,754
|
Pension
plans
|
48
|
30
|
52
|
65
|
Total
|
9,681
|
3,596
|
10,751
|
4,246
|
Current
|
2,128
|
868
|
2,663
|
1,225
|
Non-Current
|
7,553
|
2,728
|
8,088
|
3,021
|
Total
|
9,681
|
3,596
|
10,751
|
4,246
|
The
income/expenses of significant transactions are set out in the following table:
|
|
|
2021
|
2020
|
|
|
|
Jan-Mar
|
Jan-Mar
|
Joint
ventures and associates
|
|
|
|
|
Petrobras
Distribuidora (BR)
|
|
|
3,310
|
3,181
|
Natural
Gas Transportation Companies
|
|
|
(245)
|
(521)
|
State-controlled
gas distributors (joint ventures)
|
|
|
449
|
560
|
Petrochemical
companies (associates)
|
|
|
768
|
979
|
Other
associates and joint ventures
|
|
|
42
|
93
|
Subtotal
|
|
|
4,324
|
4,292
|
Brazilian
government – Parent and its controlled entities
|
|
|
|
|
Government
bonds
|
|
|
7
|
13
|
Banks
controlled by the Brazilian Government
|
|
|
(63)
|
(92)
|
Receivables
from the Electricity sector
|
|
|
15
|
13
|
Petroleum
and alcohol account - receivables from the Brazilian Government
|
|
|
11
|
2
|
Brazilian
Federal Government - dividends
|
|
|
−
|
(2)
|
Empresa
Brasileira de Administração de Petróleo e Gás Natural – Pré-Sal Petróleo S.A. –
PPSA
|
|
|
(31)
|
(40)
|
Others
|
|
|
10
|
−
|
Subtotal
|
|
|
(51)
|
(106)
|
Total
|
|
|
4,273
|
4,186
|
Revenues,
mainly sales revenues
|
|
|
4,734
|
4,975
|
Purchases
and services
|
|
|
(380)
|
(715)
|
Income
(expenses)
|
|
|
(43)
|
−
|
Foreign
exchange and inflation indexation charges, net
|
|
|
(40)
|
(59)
|
Finance
income (expenses), net
|
|
|
2
|
(15)
|
Total
|
|
|
4,273
|
4,186
|
The
liability related to pension plans of the Company's employees and managed by the Petros Foundation, including debt instruments, is presented
in note 13.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
|
30.2.
|
Compensation
of key management personnel
|
The total compensation
of Executive Officers and Board Members of Petrobras is set out as follows:
|
|
Jan-Mar/2021
|
|
Jan-Mar/2020
|
|
Officers
|
Board
members
|
Total
|
Officers
|
Board
members
|
Total
|
Wages
and short-term benefits
|
0.7
|
−
|
0.7
|
0.8
|
−
|
0.8
|
Social
security and other employee-related taxes
|
0.2
|
−
|
0.2
|
0.2
|
−
|
0.2
|
Post-employment
benefits (pension plan)
|
0.1
|
−
|
0.1
|
0.1
|
−
|
0.1
|
Total
compensation recognized in the statement of income
|
1.0
|
−
|
1.0
|
1.1
|
−
|
1.1
|
Total
compensation paid
|
1.0
|
−
|
1.0
|
1.1
|
−
|
1.1
|
Average
number of members in the period (*)
|
9.00
|
10.00
|
19.00
|
9.00
|
9.33
|
18.33
|
Average
number of paid members in the period (**)
|
9.00
|
5.00
|
14.00
|
9.00
|
4.00
|
13.00
|
(*)
Monthly average number of members.
|
(**)
Monthly average number of paid members.
|
For
the three-month period ended March 31, 2021, expenses related to compensation of the board members and executive officers of Petrobras
amounted to US$ 3.5 (US$ 3.6 for the same period of 2020).
On
July 22, 2020, the Company’s Annual Shareholders’ Meeting set the threshold for the overall compensation for executive officers
and board members at US$ 8 (R$ 43.3 million) from April 2020 to March 2021. On April 14, 2021, the Company’s Annual Shareholders’
Meeting set the threshold at US$ 8 (R$ 47 million) from April 2020 to March 2021 (an increase denominated in Brazilian reais
offset by the depreciation against US dollars).
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.
In
accordance with Brazilian regulations applicable to companies controlled by the Brazilian Federal Government, Board members who are also
members of the Audit Committee or Audit Committee of Petrobras and its subsidiaries are only compensated with respect to their Audit
Committee duties. The total compensation concerning these members was US$ 113 thousand for the first quarter of 2021 (US$ 135 thousand
with tax and social security costs). For the same period of 2020, the total compensation concerning these members was US$ 123 thousand
(US$ 142 thousand with tax and social security costs).
|
31.
|
Supplemental
information on statement of cash flows
|
|
Jan-Mar/2021
|
Jan-Mar/2020
|
Amounts
paid/received during the period:
|
|
|
Withholding
income tax paid on behalf of third-parties
|
188
|
440
|
Capital
expenditures and financing activities not involving cash
|
|
|
Lease
|
384
|
440
|
Provision/(reversals)
for decommissioning costs
|
(1)
|
-
|
Sale
of Mangue Seco Wind Farms 1, 3 and 4
In
April 2021, Petrobras finalized the sale of all its 49% interest in the companies Eólica Mangue Seco 1, 3 and 4 to Vinci Energia
Fundo de Investimento em Participações em Infraestrutura (Vinci Energia). After complying with all the conditions precedent,
the operation was closed with the payment of US$ 8 (R$ 44 million) to Petrobras concerning Mangue Seco 1 and US$ 14 (R$
78 million) concerning Mangue Seco 3 and 4, including price adjustments provided for in the contract. In relation to Mangue Seco 3 and
4, the amount received adds to US$ 4 (R$ 22.5 million) at the contract signing, totaling US$ 18 (R$ 101 million).
Petrobras
on agreement with Amazonas Energia
On
April 7, 2021, Petrobras and its subsidiaries Breitener Tambaqui S.A. and Breitener Jaraqui S.A. signed a legal agreement with Amazonas
Energia S.A. (debtor) and Centrais Elétricas Brasileiras S.A. - Eletrobras (jointly responsible) , in the amount of US$ 77
(R$ 436 million), for the collection of amounts relating to seven lawsuits, which will be suspended until the full settlement of
the negotiated credits. The debt will be settled in 60 installments updated based on 124.75% of the CDI, from January 18, 2021 until
full settlement.
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
|
The
agreement also includes the recovery of a credit from Petrobras, in the amount of US$ 1 (R$ 3.2 million) related to an invoice
issued in September 2019, settled by Amazonas Energia in April 2021.
The
signing of the agreement will generate a positive effect on the Company’s statement of income in the second quarter of 2021 of
US$ 58 (R$ 328 million), net of tax effects.
Surplus
Volume of the Transfer of Rights Agreement under production sharing regime of Sépia and Atapu
On
April 9, 2020, the Company’s Board of Directors approved the signing of an agreement with the Brazilian Federal Government that
establishes the participation in each contract and the compensation value to Petrobras in case of bidding for the Surplus Oil of Transfer
of Rights Agreement in Sepia and Atapu fields. On April 16, this agreement was approved by the Ministry of Mines and Energy (MME).
With
the publication of MME Ordinances No. 23/2020 and 493/2021, Petrobras and PPSA reviewed and defined the amounts of compensation to be
paid by the new contractor to Petrobras, prior to the bidding process for the Surplus Oil of Transfer of Rights Agreement, for the deferral
of cash flow in the two areas, as well as the participation of the Transfer of Rights and production sharing contracts.
The
agreement provides for the following terms: compensation of US$ 3,254 for the 60.5% stake of the new contractor in Atapu field and US$
3,200 for the 68.7% stake in Sepia field. In addition, there are contingent payments (earn out), due from 2022 to 2032, which will be
payable as of the last business day of January of the subsequent year since the Brent oil price reaches annual average higher than US$
40 per barrel, limited to US$ 70 per barrel. Such payments have a one-year grace period for the payment of the first installment of the
earn out, from 2023 to 2024, adjusted at 8.99% p.a..
These
conditions will be established in a Co-Participation Agreement that will bind Petrobras to the new contractor in the area(s). The Co-Participation
Agreement will only be effective with the signing of the Production Sharing Contract and the payment of compensation to Petrobras, when
the contractors will have access to their participation in the production from Sépia and Atapu fields.
On
April 28, 2021, Petrobras expressed to the Conselho Nacional de Política Energética (CNPE) the interest in exercising
its preemptive right in the Second Bidding Round for the Surplus Volume of the Transfer of Rights under the Production Sharing regime,
in the areas of Atapu and Sépia, with a 30% interest, considering the parameters disclosed in CNPE Resolution nº 5 of April
22, 2021, and in the Ordinance of the Ministry of Mines and Energy (MME) nº 08 of April 19, 2021.
The
amounts corresponding to the signature bonuses to be paid, in case of confirmation of the interest, will be US$ 211 (R$ 1,201 million)
for Atapu and US$ 376 (R$ 2,141 million) for Sépia.
Settlement
of tender offer
On
April 12, 2021, Petrobras concluded the tender offer to buy back global notes maturing between 2024 and 2050, made by its wholly-owned
subsidiary PGF BV. The principal amount delivered by investors, excluding unpaid accrued interest, was US$ 2,496. The total amount paid
was US$ 2,720, considering the prices offered and excluding accrued interest until the closing date.
Sale
of remaining interest in NTS
On
April 28, 2021, the Company's Board of Directors approved the sale of its remaining 10% interest in Nova Transportadora do Sudeste S.A.
(NTS) to Nova Infraestrutura Gasodutos Participações S.A., a company formed by Nova Infraestrutura Fundo de Investimentos
em Participações Multiestrategia (FIP), an investment fund managed by Brookfield Brasil Asset Management Investimentos
Ltda, and by Itaúsa S.A., current controlling shareholders of NTS, for the amount of US$ 316 (R$ 1.8 billion).
Considering
the discount of dividends, interest on capital and restitution through capital reduction received by Petrobras throughout 2020 and 2021
and other adjustments provided for in the agreement, it is estimated a cash inflow amounting to US$ 263 (R$ 1.5 billion), to be fully
paid on the signature date of the operation.
Petrobras
extends maturity of revolving credit line
On
April 30, 2021, Petrobras extended part of the revolving credit facility maturing in March 2024, in the amount of US$ 3,250, for
two more years. Thus, 63% of this credit line (US$ 2,050) can be drawn down until 2026, and the remainder will expire in the original
term.
Sale
of thermoelectric power plants
On
May 3, 2021, Petrobras signed with São Francisco Energia SA, a subsidiary of Global Participações em Energia SA,
an agreement for the sale of three thermoelectric plants powered by fuel oil, located in Camaçari, in the state of Bahia (UTEs
Polo Camaçari) for US$ 17 (R$ 95 million) subject to price adjustments provided for in the contract and to the fulfillment
of conditions precedent, such as the approval of the Administrative Council for Economic Defense (CADE) and the National Electric Energy
Agency (ANEEL).
NOTES TO THE FINANCIAL STATEMENTS - UNAUDITED
PETROBRAS
(Expressed in millions of US Dollars, unless otherwise indicated)
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The
Company estimates the recognition of a US$ 52 (R$ 294 million) loss after taxes due to the difference between the sale and carrying
amount of these assets.
Agreement
with Companhia de Eletricidade do Amapá
On
May 11, 2021, Petrobras signed with Companhia de Eletricidade do Amapá (CEA) a legal agreement for the termination of litigation
and credit recovery in the amount of US$ 55 (R$ 314 million). The agreement establishes the unconditional payment of US$ 23
(R$ 133 million) to Petrobras, to be settled in 24 monthly installments. A discount will be granted on the remainder US$ 32
(R$ 181 million), provided that the payments occur on time. In case of default, as provided for in the agreement, Petrobras may demand
the outstanding debt without discount.
The
agreement is subject to the following suspensive conditions: (i) success on the bidding process for the privatization of the CEA, which
is expected to occur until June 30, 2021, and (ii) transfer of the controlling interest of the CEA until December 31, 2021.
Met
these conditions, the agreement will generate a US$ 23 (R$ 133 million) gain for Petrobras, before taxes. The corresponding allowance
for expected credit losses were already accounted for as of December 31, 2020.
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33.
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Information
related to guaranteed securities issued by subsidiaries
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33.1.
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Petrobras
Global Finance B.V. (PGF)
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Petróleo
Brasileiro S.A. - Petrobras fully and unconditionally guarantees the debt securities issued by Petrobras Global Finance B.V. (PGF), a
100-percent-owned finance subsidiary of Petrobras. There are no significant restrictions on the ability of Petrobras to obtain funds
from PGF.