Webcast about 1st quarter results 2011 - IFRS

1. Results Announcement
1st Quarter 2011
(IFRS)
Conference Call/Webcast
Almir Guilherme Barbassa
CFO and Investor Relations Officer
May 17th, 2011
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2. DISCLAIMER
FORWARD-LOOKING STATEMENTS:
DISCLAIMER
The presentation may contain forward-looking statements We undertake no obligation to publicly update or
about future events within the meaning of Section 27A of revise any forward-looking statements, whether as
the Securities Act of 1933, as amended, and Section 21E a result of new information or future events or for
of the Securities Exchange Act of 1934, as amended, that any other reason. Figures for 2011 on are
are not based on historical facts and are not assurances of estimates or targets.
future results. Such forward-looking statements merely
reflect the Company’s current views and estimates of
future economic circumstances, industry conditions, All forward-looking statements are expressly
company performance and financial results. Such terms qualified in their entirety by this cautionary
as "anticipate", "believe", "expect", "forecast", "intend", statement, and you should not place reliance on
"plan", "project", "seek", "should", along with similar or any forward-looking statement contained in this
analogous expressions, are used to identify such forward- presentation.
looking statements. Readers are cautioned that these
statements are only projections and may differ materially
from actual future results or events. Readers are referred NON-SEC COMPLIANT OIL AND GAS RESERVES:
to the documents filed by the Company with the SEC,
specifically the Company’s most recent Annual Report on CAUTIONARY STATEMENT FOR US INVESTORS
Form 20-F, which identify important risk factors that could We present certain data in this presentation, such
cause actual results to differ from those contained in the as oil and gas resources, that we are not permitted
forward-looking statements, including, among other to present in documents filed with the United
things, risks relating to general economic and business States Securities and Exchange Commission (SEC)
conditions, including crude oil and other commodity under new Subpart 1200 to Regulation S-K because
prices, refining margins and prevailing exchange rates, such terms do not qualify as proved, probable or
uncertainties inherent in making estimates of our oil and possible reserves under Rule 4-10(a) of Regulation
gas reserves including recently discovered oil and gas S-X.
reserves, international and Brazilian political, economic
and social developments, receipt of governmental
approvals and licenses and our ability to obtain financing.
2

3. HIGHLIGHTS OF THE QUARTER
o Record net income;
o Start‐up of pre‐salt EWT in Campos and Santos Basins: Brava,
Tracajá and Lula Northeast;
o New oil discoveries in Santos Basin pre‐salt area, such as
Carioca Northeast and Macunaíma;
o Start‐up of gas pipelines linking Lula Pilot and Mexilhão platform
and connecting Caraguatatuba and Taubaté (Gastau);
o New diesel and naphtha HDT units in RPBC, REGAP and REVAP
refineries;
o US$ 6 billion Bond issuance of 5, 10 and 30 year.
3

4. MAIN INDICATORS
∆%
1Q11 4Q10 1Q10
1Q11 X 4Q10
EBITDA (R$/million) 16,093 14,584 10% 15,076
OPERATING INCOME¹ (R$/million) 12,536 10,773 16% 11,617
NET INCOME² (R$/million) 10,985 10,602 4% 7,726
AVERAGE REALIZATION PRICES – ARP (R$/bbl) 163.58 158.89 3% 157.39
AVERAGE REALIZATION PRICES – ARP (U$/bbl) 98.15 93.66 5% 87.29
Brent (US$/bbl) 104.97 86.48 21% 76.24
Average sales dollar (R$) 1.67 1.70 ‐2% 1.80
Production (thousand bbl/day) 2,627 2,628 ‐ 2.547
¹ Income before financial results, profit sharing and taxes
² Net income attributable to Petrobras shareholders 4

5. OIL AND GAS PRODUCTION – 1Q11 VS 1Q10
Total Production (daily average) Brazilian Production (daily average)
+3% 2,385
2,547 2,627 2,302 +4%
‐1% 341 Natural
245 242 International 317 8%
Gas
(thous bpd)
4% 3% Oil and
2,385 2,044 NGL
2,302 Brazil 1,985
1Q10 1Q11 1Q10 1Q11
o Increase in production due to ramp‐up of installed units in 2010 in Campos Basin, Lula Pilot, and EWTs of
Tiro, Sidon and Guará;
o Start‐up of new wells in Akpo and Agbami (Nigeria) partially offset by decline of mature fields in Argentina
and Colombia;
o Investments in infrastructure and new NG production units contributed to a supply growth of 8% when
compared 1Q11 VS 1Q10.
5

6. SANTOS BASIN PRE‐SALT UPDATE
o Approval of chartering of 2 new FPSOs for the
Guará‐Norte and Cernambi projects;
o New discovery of good quality oil in the pre‐
salt reservoirs of block BM‐S‐9, informally
known as Carioca Nordeste;
o Discovery of a new accumulation of good
quality oil in Parati (BM‐S‐10), named
‘ Macunaíma;
o 8 new drilled wells in 2011, taking Santos
Basin Pre‐Salt total to 28 wells drilled;
o PLANSAL Revision;
o Start up of Lula Nordeste EWT;
o Restart of Guará EWT;
o The current fleet of drilling rigs (6) will
increase to 11 by the and of the year.
6

7. CONTINUOUS PROJECTS OPTIMIZATION SINCE THE FIRST
PLANSAL
PLANSAL IN 2008
Capex
Transfer
of Rights
Areas Under
Concession
Net Present
Value
Areas Under
Concession
7

8. EXTENDED WELL TESTS IN PRE‐SALT
EWT Results:
o Steady Production without decline
during the test;
o Good behavior of the reservoirs;
o Excellent lateral communication;
o No flow assurance issues;
o Restriction due to gas flaring limits.
6 EWT completed and 4 still underway
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9. DRILLING OPTIMIZATION IN THE SANTOS PRE‐SALT
o Since the beginning of the activities in the Santos pre‐salt, the drilling time has decreased, reducing Capex.
* Wells ordered by drilling duration.
9

10. AVERAGE REALIZATION PRICE
US$/bbl R$/bbl
120 1Q11 AVERAGE
220
105 ARP Petrobras: 163.58
100 ARP USA: 180.54
86 170
78 94
80 75 76 77
68 80
59 70 73 74 72 120
60 64
44 2010 AVERAGE
ARP Petrobras: 158.26
70
40 49 ARP USA: 150.67
32
20 20
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
ARP USA ARP Petrobras
Petrobras Oil Price (Average) Brent (US$/bbl)
o Oil price volatility in the quarter (Brent went from US$ 86,48 in the 4Q10 to US$ 104,97 in the 1Q11) due to
geopolitical issues in North Africa, especially in Libya.
10

11. LIFTING COST IN BRAZIL
175.30
R$/barrel US$/barrel
104.97
147.02
86.48
140.16
137.23
134.51
78.30
76.24 76.86
50.66 30.48
24.50 24.67 25.58
43.82 43.91 42.72 43.47 23.73
19.10
31.66 14.33 14.71 14.07 15.29
26.87 26.37 24.26 26.13
16.95 17.54 18.46 17.34 19.00 9.40 9.79 10.60 10.29 11.38
1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11
Brent Government Take Lifting Cost
o 1Q11 vs. 4Q10 Comparison:
o Lifting cost increased due to higher expenses with well intervention and scheduled stoppages;
o Higher government take due to higher reference oil price.
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12. OIL PRODUCTS AND NATURAL GAS SALES IN
DOMESTIC MARKET
OIL PRODUCTS NATURAL GAS
2.052 1.968 363
1.851
578 OTHERS 125 291
525
505 257
Thous. bpd
46 Thermal
219 30
208 LPG
203
414 439 GASOLINE
410
227 238 245 Non thermal
733 841 796 DIESEL
1Q10 4Q10 1Q11
1Q10 4Q10 1Q11
o Domestic oil products sales increased 6% in the 1Q11 vs 1Q10 comparison, due to the Brazilian economy growth;
o Jet Fuel sales increased 18% in the 1Q11 vs. 1Q10;
o Natural Gas sales increased 13% (1Q11 vs 1Q10), due to industrial and power generation demand.
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13. OPERATING RESULTS – BRAZILIAN REFINING
Crude Oil Processed Oil Products Production Utilization Factor and
Thous. Barrels/day Thous. Barrels/day % Brazilian Oil Throughput
2.000 2.100
100
1,852 6.4%
1,738 1,877
1.800 1,765
1.800 95
332
1.600
341 424 89.8
1.500
418 90
1.400 86.2
244 85
1.200 239 82.1
1.200 80.4
1.000 80
390
900 353
800
1,520 92 75
1,397 73
600 600
70
400 6.5%
682 727
300
200 65
- 0 60
1Q10 1Q11 1Q10 1Q11 1Q10 1Q11
Imported Oil Processed
Diesel Jet Fuel Gasoline Utilization Factor - Brazil (*)
Brazilian Oil Processed
Brazilian Oil Throughput
Fuel Oil Others
o Increase in crude oil processed in the 1Q11 due to revamps and refining expansions during 2010. Schedule stoppages
in the 1Q10 also contributed to the increase.
(*) Utilization Factor reached 92.1% in March/2011 13

14. OPERATING INCOME 1Q11 vs 4Q10 (CONSOLIDATED)
(R$ Million)
1,016 627 (188) 12,536
10,773 308
4Q10 Sales COGS Expenses Other 1Q11
Operating Revenues Expenses Operating
Income Income
o Positive effect on COGS due to inventories built at lower prices in the 4Q10 (R$ 1.2 billion);
o Decrease in Expenses due to lower exploratory costs (R$ 425 million) and SG&A expenses (R$ 210 million).
14

15. NET INCOME 1Q11 vs 4Q10 (CONSOLIDATED)
(R$ Million)
1,763 96 (112) (1,189)
10,602 (175) 10,985
4Q10 Operating Financial Interest in Taxes Minority 1Q11
Net Income Income Results Investments Interest Net Income
o Higher income taxes due to lower tax benefit from Interest on Capital in the 1Q11 (R$ 754 million).
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16. EXPLORATION AND PRODUCTION
Operating Income 1Q11 vs 4Q10
(R$ Million)
3,983 (815) (786) 388 (507) 14,142
11,879
4Q10 Price Effect Volume Effect Cost Effect Volume Effect Operat. 1Q11
Operat. on Revenues on Revenues on COGS on COGS Expenses Operat.
Income Income
o Negative volume effect due to lower sales/oil transfers to Downstream;
o Increase in COGS due to higher lifting costs and government take.
o Higher lifting costs partially offset by lower DD&A ( ‐ R$ 1,01 per barrel);
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17. DOWNSTREAM
Operating Income 1Q11 vs 4Q10
(R$ Million)
2,676 (1,497)
(4,690)
1,508
1,466 43 (494)
4Q10 Price Effect Volume Effect Cost Effect Volume Effect Operat. 1Q11
Operat. on Revenues on Revenues on COGS on COGS Expenses Operat.
Income Income
o Positive price effect due to higher oil and oil products prices, especially reflected on exports;
o Sales of oil and oil products inventories built at lower prices in the 4Q10 avoided higher increase in COGS.
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18. GAS & POWER, INTERNATIONAL and
DISTRIBUTION (1Q11 vs 4Q10)
(R$ Million)
1Q11 VS. 4Q10
Gas & Power
Operat. Income: R$ 745 R$ 529 41%
o Higher average market prices of natural gas and reduction of
acquisition/transfer costs of domestic gas;
o Lower LNG imports and consumption volume;
o Commercialization margins gains on power energy, due to average
cost reduction at the spot market.
International
1Q11 VS. 4Q10
Operat. Income: R$ 903 R$ 272 232%
o Earnings increased due to higher commodities prices;
FPSO Campo de Akpo
o Lower exploratory expenses and dry wells write-offs also contributed to a better
result.
Distribution
1Q11 VS. 4Q10
Operat. Income: R$ 559 R$ 443 26%
o 6% increase in commercialization margins offset by 7% reduction in
sales volume;
o This increase was compensated by the 7% reduction in sales volumes.
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19. INVESTMENTS 1Q2011 vs 1Q2010
1Q2011 1Q2010
R$ 15.9 billion R$ 17.8 billion
(R$ billion) (R$ billion) Others
Others*
0.8 0.6
Inter ‐ 0.9 Inter ‐ 1.5
G&P* ‐ 1.0
E&P* G&P* ‐ 2.4 E&P*
7.2 7.9
RTM*
6.0 RTM*
5.4
o E&P: Decreased investments as a result of reduced exploration expending for the quarter;
o RTM: Expansion (33%), quality (37%) and others (30%);
o G&P: Complementary phase of investments, after massive infrastructure built.
*Includes projects developed by SPEs 19

20. LEVERAGE
Net Debt/Net Cap. Net Debt/Ebitda
6 40%
5
34% 30%
4 32% 16% 17% 17%
3 20%
1.52
2 1.35 1.03
0.94 1.03
10%
1
0 0%
1Q10 2Q10 3Q10 4Q10 1Q11
R$ Billion 03/31/11 12/31/10
Short Term Debt 16.6 15.7
o Petrobras` Leverage level kept stable
Long Term Debt 112.4 102.2
when compared 1Q11 VS 4Q10;
Total Debt 129.0 117.9
Cash and Cash Equivalents 43.3 30.3 o QoQ higher long term debt is
Tradeable Securities 19.6 25.5 explained by bonds issuance ( US$ 6
Adjusted Cash and Cash Equivalents 62.9 55.8 billion), last January.
Net Debt 66.1 62.1
Net Debt/Ebitda 1.03X 1.03X
US$ Billion 03/31/11 12/31/10
Net Debt 40.6 37.3
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21. Information:
Investor Relations
+55 21 3224-1510
petroinvest@petrobras.com.br
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