Petroleo Brasileiro S.A. Petrobras ADS

They had no crews, so we changed this procedure. So now they have a crew. They go straight to their location or their sites, and that also anticipates production and operation of more oil, again, to benefit our investors, government or private sector investors. That's another improved procedure that ultimately means more oil in the tanks, in our tanks. We also had more natural gas supply offered to the market. We increased our gas production by 15% to the market. And this was a result of our Route 3 reaching the state of Rio de Janeiro, in the Boa Ventura complex. And this also means that in addition to Route 3, there has been a lot of effort put into processing this gas in a gas processing unit in the Boa Ventura complex, in the Itaburayi hub. Ladies and gentlemen, we are really happy to have All this good news to you. These deliveries are under our control. We're totally in control of them. So we are delivering them. We're improving on them. And you can rest assured that in our daily work, that means continuous improvement. And this is done. When the company realizes that there's a challenging scenario, geopolitical challenges that are ahead of us when we consider the price of our final product, crude oil and gas. As I said, these factors are not controlled. The price of crude oil is not under our control. However, mitigating effects of these price variations, this is indeed under our control. So we are responding by increasing production with also increased production and also a very strong perspective in cost reduction. In the second quarter, you know, the second quarter was impacted by a falling oil price that was around 68 U.S. dollars per barrel. That was 10 percent down as compared to last year, last semester. And we responded by increasing our production by 5 percent. oil price falls in our balance sheets. We are now working hard and you can rest assured that we're doing this to make our projects increasingly more competitive in this scenario of uncertainty and in this scenario of price falls of our final product. And the major product is crude oil. You will see that we will have more earnings in our next business plan that will be presented by the end of the year. So we are analyzing all possibilities of simplifying and optimizing our projects to reduce costs and also to increase efficiency gains.

Having said that, I'd like to repeat what I mentioned in the previous webcast and what I have been saying since the beginning of my speech today. We are absolutely committed to looking for the best possible results for our investors and for the Brazilian society as a whole. We will generate value even in challenging times. scenarios in terms of oil prices. Our projects will be profitable and valuable for the portfolio of our company. We will dedicate to the things we do best, which is to explore and produce oil and gas and its products, selling these products efficiently and with quality. always reconciling all these efforts, considering our needs to provide a fair energy transition. Thank you very much for joining us. And now we will proceed to the presentation of our CFO, Fernando Melgarejo, who will talk about the financial results of our company. Fernando, the floor is yours. Good morning, everyone. Good morning to those who are listening to us. And I'd like also to greet everyone from the Spaniel. Thank you for joining us for another Petrobras earnings webcast. And I'll begin by presenting the key figures for the second quarter of 2025. Well, Magna has already highlighted in her opening remarks the remarkable growth in our production this quarter. On this slide, you can see that while brand prices declined by 10% quarter over quarter, going from from 60.7% to 75%, we had an increase of 5% with new production systems and improved operational efficiency across our fields. As our CEO mentioned, the first half of the year, we already reached the midpoint of our 2025 production target, which is 2.3 million barrels per day. Commercial gas production also grew significantly. Petrobras increased its gas supply significantly to the market by 15%, mainly due to the progress of the Rhoda III pipeline and the Boa Ventura gas processing unit. When considering total production, we reached a new record of 4.2 million barrels of oil equivalent per day. This increased production volume in quarter two was key to delivering financial results in line with the previous quarter. It was only made possible through consistent complex execution and strong engagement from our workforce. And our complex has been discussed in many situations. If it would be productive, it would have an impact on our production. And this is being presented now. Let's move on to slide six. Our operational, slide six. So we reported net income, excluding one of events of 4.2 1 billion US dollars and EBITDA also excluded one of events of 10.2 billion US dollars. These figures are on par with the previous quarter when brand prices were 10% higher. In other words, our strong operation results offset external factors which were beyond our control. For example, the price of the commodities. Efficient management of our commercial strategy also positively contributed to the results. we implemented three diesel price reductions in the quarter two and one gasoline price reduction during the period, maintaining competitive margins and profitable operations and also the company's share. Operating cash flow was 7.5 billion US dollars. Here, we saw a decline compared to the previous quarter, mainly due to known events such as PIS, COFINS, tech credit related to last year's tax transaction, which had positively impacted quarter one, 25 results, but was not the case for this quarter. Additionally, the payment of variable remuneration, which had a higher rent, which is the basis to payment to government shareholders and payment of variable remuneration. which usually impacts company cash flow in the quarter two after the shareholders meeting. All events that will not happen in the next quarter. Additionally, in quarter two, we had higher selling expenses, mainly due to increased crude oil export volumes because of our production. Slide seven, here we present our debt history. you can see that both financial debt and chartering remain under control and that over 60% of total indebtedness relates to leases of platforms, vessels, and rigs, which, according to accounting standards, must be recognized as debt. It is important to remember that this lease portion refers to assets generated production and, consequently, revenue for the company. When we consider commissioned this year the FSOs Alexandre de Gouman and Almirante Tamandaré, both chartered platforms, we had to record lease liabilities as debt. These two platforms added 3.7 billion to our debt this year, but on the other hand, we added 207,000 barrels per day of production capacity for our company. Considering other vessels and amortizations, leases added approximately 5 billion US dollars to our debt in the first half of 2025. So these leases are associated with more capacity, more production, and therefore they add revenue to our company. Well, regarding financial debt, this quarter we highlight a successful public offering of the ventures, totaling 3 billion Brazilian reals. It was successful with high demand and allowed us to raise funds at the local market, something we hadn't done for eight years, with competitive costs in line with our liabilities management strategy. Slide eight, we're going to talk about CapEx. We invested 4.4 billion US dollars in quarter two, which added to the first quarter leads to 18.5 billion US dollars for this year. We are, according to our plan, of our guidance, which is 18.5 for the year. We have a firm commitment to the market to execute what we planned, accelerating value, generating deliveries, and anticipating revenue. Due to these efforts, we started production from the FPSO Alexandre de Guzmão, starting over two months ahead of schedule. As our CEO has already mentioned, the Almirante da Mandaré, a huge platform, began operating in February, has already reached 200,000 barrels with only four producing wells. Soon we will reach peak of production. In 2025, we have already connected more wells than in the entire previous years. 48 wells, including 30 producing and 18 injecting wells. In the same period last year, we had 31, 12 producers and 19 injectors. This is therefore a complex that is very much focused on production. Let's now proceed to slide number nine. Petrobras investment has been bringing benefits to the company, its shareholders and society. We are talking here about more production and consequently more operational cash flow. And we are now an important exporter of commodities, contributing to Brazil's trade balance. It's not just investment in new projects, we are improving efficiency, adjusting our maintenance schedules and managing reservoirs efficiently. All this contributes to the production curve growth. Our CEO mentioned in her opening remarks production in July, which exceeded the previous quarter. We are talking here about an increase of 380,000 barrels per day only in seven months. With this trend and ongoing efforts, we expect average oil and gas production in 2025 to be at the upper end of the target range, representing about 100,000 barrels per day above the midpoint. At a price of 70 US dollars, in US dollars, we will have an additional 2.5 billion US dollars revenue. And this... Current plan production curve carries less risks today than when the plan was approved. In other words, for the same confidence level, we would have a higher curve today. Slide number 10. We have talked about CapEx production, and now we will talk about dividends. I want to remind you of the strength of our shareholders' remuneration policy. The formula ensures dividends align with different oil prices without compromising the company's financial robustness. Accordingly, we apply the formula set forth in our policy and we will distribute 45% of a free cash flow from quarter two. Therefore, the board approved a distribution of 8.7 billion Brazilian Reals, equivalent to 0.67 per share to be paid in two equal installments in November and December this year. Well, this concludes my presentation and I thank you all again for your attention. So along with the other directors, I'm available to answer your questions. Now I hand over to Eduardo who will then continue with the Q&A session. Thank you, Fernando. Thank you, Magda. So let's start with the Q&A session. Can you hear us? You can proceed with the question. Good morning. Thank you very much for the call. So I will align Capex results with what you mentioned yesterday, so that you work with natural gas distribution. As CEO mentioned, Petrobras has been focusing CapEx, particularly on upstream delivering operational results. We'd like to understand what we can expect in terms of new investments in the next few years and how this is integrated to the business plan, including strategy from the board and timing for this operation.

Thank you for the question.

we are a company that is started already integrated. So Petrobras is 71 years old and it started and it became what it is because it is a company that is integrated all over. So with that, we are looking at the possibility of reaching synergy. When we look at an increase in gas production, for example, are looking at what it represents, for example, in terms of more LNG for the market. We import LNG and we will deliver more. These margins related to our product, they also need to be captured. So what we did yesterday was to say the following. Well, here we have the product that will have an increasing production and If it's a good business for the company, if that's profitable, and if this is properly attractive, why not have this additional synergy? So we have nothing in sight right now. No project to acquire LNG. There is nothing in Petrobras portfolio But we guarantee and make sure, we wanted to make sure that the doors were open for a possibility if the project is good and profitable and if the project attractiveness is in line with what Petrobras demands. Well, maybe we... can say basically Petrobras has already been working to be the best choice to our customers and being the best choice to our customers means to have competitive prices, to really have availability where there's demand for the products so we have already been doing that to the extent that we have direct sales. We have been trying to have direct sales to big customers. So we are doing that already. We have tried to access terminals, channels, and advancing in a way. Obviously, this is a way of distributing. We'll get to the source. It's something that is natural. as our CEO has mentioned, we will have a significant production of diesel. We will have an increase in production of LNG. So all, well, for that, we need markets. So the market is the way to monetize and it's the most profitable thing for our company. This is where our efforts go to in this regard. We have been advancing in direct sales, in direct sales of LNG where we have infrastructure available. We are talking with big customers to supply LNG directly to them, capturing a margin. As our CEO said, I would say that this vision is very natural. So we have a driver here. I think it's on the table for discussion and we will look at it and obviously finding this economic rationale as our CEO mentioned, and we're going to look at it and this will be considered for approval going through our board. Well, just adding to that, from the point of view of governance, as we've already said, we will follow all the assessment by governance, availability of funds in order to make investments when needed. So we are really sure that any project, it will be implemented if it creates value for our shareholders and if there's discipline in the capital to be used in the project. So it has to do with that limit we have and we have have been strongly managing our debt and we intend to reach the target we presented in our strategic plan for 2025-2029. Thank you Fernando, Magna, Milene for the question. Next question by Bruno Montanari. Good afternoon, thank you for Taking my question, I'd like to congratulate the company for the significant increase in production in such a short period of time. It's very clear the ramp up of the new platforms and the pre-salt layer. I'd like to understand about the risk factors that is less than leading to a more conservative curve and connected to a better execution. try to advance a potential revitalization of intrapinoa so that you have even greater production in the midterm. Thank you very much.

Good morning, everyone.

We are in a very special quarter. We had increase in our production. Reduction, well, we spent less, we produced more, and we also strongly reduced our costs. So the issue of production in this field, we are talking about this growth. And this really refers to the reservoir. We have a reservoir in the pre-salt layer, and the effective response of this reservoir is only given when the field is connected. We have had very good surprises. Expectations have been confirmed in terms of increase in production and wells that are really very productive. We have four wells with over 200,000 production, and by the end of the year, we are planning to increase production, but we'd like to remind you that we will have this issue of platforms. We have started some big platforms and we will have the planned shutdowns. So this increase will level off. But anyway, by the end of this year, we will have an increase reaching our target as for plan. But at the upper portion of our target, we are looking at Itapinhoa and Tupi improving optimization with new units to increase production there.

Now, adding to the question, you mentioned 2P in particular, right? So as Sylvia mentioned, 2P is having at least another two projects, revitalizing 2P and what we call complementary 2P. Our challenge is to reach the level of one million barrels of oil a day. Thank you. Thank you, Sylvia. Thank you, Magda. Thank you, Bruno, for your question. Now, Vicente. Vicente of Bradesco. So, Vicente, over to you. Good afternoon, everyone. Thank you for taking my question. I'd like to discuss the GLP release or LPG release that you published last night. So, any M&A movements in this sector, they need to be approved in the November planned first, and only then you would make any transactions. Then you also mentioned on the release that you would have partnership, distribution partnerships, according to, quote unquote, provisional contract provisions. So what kind of partnership is this? What are these contract provisions? Thank you. As Executive Director Claudio, Claudio Schlosser mentioned, As our production increases, our greatest challenge is really to put these products onto the market and also to widen our market base. We have increasing production. That means extending our refinery facility or refinery system. We want to increase diesel as well. S10, which is highly profitable, in at least an additional 200,000 barrels a day. As a result, there's more pressure for increasing our markets. So what have we been doing? We knock at the door of our largest consumers, including agribusiness in Brazil, agribusiness consumers. LPG, not only industrial, but also domestic. In other words, we are expanding our natural gas market. As you can see, our efforts to have natural gas in Brazil's free market meant everything. a large number of companies that are now part of this movement by Petrobras. This is why we extended this gas market by 15%. Now, what we cannot have is limitations to make strides to make progress in this area. So whatever is needed is B2B or sales to large consumers, sales to final consumers in gas stations or even in terms of gas. What we want is to have open doors to make choices, to choose the best company that will add the most value possible. and in the most efficient way of really placing our product in the market. Now, after we understood that Petrobras, over time, Petrobras has chosen to leave some markets behind. We had this duty So why having this duty of leaving some markets? Why can't we leave this door open so that this door may be used in the best possible way? And this is what we did yesterday. Thank you, Magda. Thank you for your question. Now, Gabriel Bardo of Citi. Gabriel, you have the floor. Thank you, Nat. President Magdo Fernandes, thank you for taking my question. My point here is just one. One of the major topics that has been discussed with investors are, of course, your investment plan for next year. We have a perspective in taking the cue of the last commitment when you discussed efficiency gains and the difficulty we have today hiring new personnel in a tighter industry environment. We have a software price movement for probes. But I think what I need to understand better is about what's going to happen. What can we expect next year? When you look at our plans for the future and also considering your previous CapEx data. So how flexible are you for next year? And what solutions could you offer provide or improve for 2026? And what are NMAs and also LPG or other fuels? So how does that mean more capex efficiency for a market that is a little more uncertain in terms of oil price in the next few months or even next few years? Okay, I'll start answering and then I'll give the floor to Fernando. And also Sylvia and Renata, if they believe they should also comment on the question. Well, what we've been telling you is that we do have extremely relevant business opportunities in exploration and production of oil companies. has the major focus. Its major focus is exploration and production with highly profitable projects. You saw the profitability level of these projects. So when we show results in the second quarter we have decreased prices that were offset by increased production levels. So when we look at these projects, first, we will check whether they're profitable. And number two, whether their profitability level is desired. If this is the case, then we move on. In other words, we will not destroy value. Rather, we will move on with profitable projects and, in a way, We should also inform you that for the first time in all Patrick Ross's life, a project changed its phase. So we had projects that were progressing in our portfolio, advancing in their phases, moving on in their phases. you have zero, one, two, three, and four assigned to our project. Four means the project is totally mature. So we had projects that were expected to migrate from phase three to phase four. Now, when we look at them with this new level, they went back to level two. The idea was that these projects should be optimized. In other words, We won't leave these projects behind. They are still profitable. They used to be profitable before, but the profitability level that they had at that time with the current Oil price, we decided to put them a few phases back, back to the drawing board so that these projects to be better optimized. I'll now give the floor to Fernando and then Renata so that they can give you a little more details. Thank you, Gabriel, for your question. First, I should stress that the current scenario is more challenging and that reflects on our business plan. And as we have this commitment with a capital discipline, all our business plan structure needs to be adequate to reflect the needs for this new scenario. In other words, we'll be able to restructure all our CapEx that will then meet the needs of our investing capacity. Considering our new production curve, that we will deliver until potentially even above the margin, but within the margin or even in the upper range. Brent is lower, so we need to offset that, and then the cash flow generation that is possible. So I believe the greatest goal or greatest commitment is really to reduce cost for the company and also optimizing projects that our president mentioned. It's the first time we went back to phase one to consider engineering aspects and then also productivity. So all these factors together They are integrated in our business plan. The idea is for us to devise a business plan that shows all this capital discipline with adjusted debt, adjusted to our size. We do not want to increase our debt for no reason, of course. Our target is still 65 billion. This will remain. So we want to create a portfolio in a business plan that is safe and secure. and adapt it to the current situation and scenario. Hello, Gabrielle. I think they've said everything that had to be said, but I'd just like to add one more point. Whatever the value of our business plan in 2026, rest assured that we will realize, make it happen this year. in the first quarter of last year, it was at 30%. And this quarter, it is aligned to what we had planned. It was 30 below the expected level. So whatever the value, we will execute as planned. Magda Fernanda Renata, thank you. And thank you, Gabriel, for your question. Now, Lilian Yan of HSBC, you have the floor, Lilian. Hello, and thank you for the opportunity. Can you please tell us about how different the results are today as compared to what you promised in your strategic plan? Of course, it's better than expected. You're probably at the top of the guidance. But again, can you please make comments about your CAPEX, your $18.5 billion investment plan? So in summary, is it safe to say that today there's a higher likelihood if this CapEx be higher this year? Are you feeling pressure from providers, suppliers? Can you expect Petrobras to put more money into Brascam if that might be a good consumer of your gas? Thank you. Thank you for your questions. All contracts for our 2025 plan and part of 2026, the contracts have already been signed. So there's no possibility or any idea of really exceeding our guidance. We will meet whatever was set on our guidance.

Our commitment is firm. short, there are no surprises ahead for Brostein.

If you allow me to just go out of protocol and pinpoint some of the things you've discussed, you have 470, that was the production number for July, and then new platforms this year. So I'd like to confirm something that you said earlier. that the curve with 2,470 is still growing. And then there's the effect of scheduled shutdowns. Maybe you can give me more details. This, I think, has to do with previous comments. I wanted to repeat these points and maybe if you could clarify them a little bit more. And then the question is about the last auction with the Amazonas blocks. And in particular, what is that partnership with AXA like? Do you believe there's synergy with the Guyanas and Suriname?

Thank you.

Okay, Regis. With regard to the ramp up, there was indeed a production increase in our reports. You can see that you have efficiency in the linking of the wells, of the wells. And the reservoir then responded well, and we had an increase rapid production increase but this growth it will be offset by the other large platforms that are programmed to start production so i can confirm that there's safety we want our platform to have a long life and also we want to make sure that we have future operations so scheduled shutdowns are essential they need to be done but we are within our planned goal. And in fact, in the upper range, that's about four. So we will have a very positive result. It is important to mention that the pre-salt layer is really surprising in terms of productivity. It's been a very positive surprise with very good results and earnings. We have an oil column That's as high as the Ponte Azucar Mountain and the size of the Guanabara Bay. And Buzos is twice as large as the Guanabara Bay. This is only confirmed when you start producing. As for the auction, yes, we did. I had the auction and defined the 10 blocks. We now have 16 blocks in Amapá. We're just waiting for environmental licensing to test our productivity out. I should stress that the blocks we have there, they're very similar to the one that we have in Venezuela, Guyana, and very similar to what we have here in the campus of Basin as well. So we know them really well. And then the partnership with Axon and Shell, we have over 30 partners here. Pedro Bras has over 30 partners. So choosing or this choice of working with Axon, which is a great operator, has made very significant results at that Guyana. And that's very similar to the equatorial margin results. So That's the best operator for us to share risks and knowledge. Thank you, Silvia and Regis for your question. Monique, you have the floor, Monique. Hello, good afternoon, and thank you for taking my questions. By the way, congratulations for your operating performance. It's really impressive. Congratulations to the entire team. I have one question only. The message that your CapEx and guests, that message was very clear. Now, we know that there are some potential movements on the radar on the horizon in the next few months, like President Magda Schamp-Riard mentioned, movements in ethanol, for instance, that the government will hold auctions for. areas, the pre-sort layer areas that were not hired this year still. So can you clarify about what we're expecting in terms of CapEx execution in addition to the 18.5 billion when you consider these additional movements that are on the short-term horizon? Can you maybe explain, especially in the non-hired areas? Thank you. Hello, Monique. Thank you for your question. Okay, Petrobras will always be present when we discuss any opportunity of auctions. The Brazilian territory is our home. In other words, when resort layer areas are being offered, we will always be present at such auctions. This is really in our interest. However, irrespective of any other factor, this will only happen if it makes economic sense to us. No one is considering embarking on a wild adventure, of course, if the project is worth it. And if it is on our business plan, This is the direction we'll be taking. The same thing applies to ethanol. Our project portfolio includes investment in renewable fuels, in energy transition, and also in biofuels. It also expects considerable effort, for instance, in electricity, including thermal power plants.

Again, we will do it provided the project is profitable and attractive, provided the project meets the attractiveness and expectations of our company in terms of economic returns. Thank you, Magda. Thank you, Monique, for your question. Next question by Luis Cavallo from BTG. Luis, the floor is yours. Good afternoon. Thank you for taking my question. I would like to congratulate you for your production ramp up. It's really nice to see it. I have a question. I'd like to reconcile it. I don't know, maybe to our, to CEO Magda or Fernando, the initial estimate for the years of this year had planned oil of 83 per barrel. And as Fernando said, now it's around 67, 68. That's the old price right now. And in this scenario, you have a gap, a delta for cash generation that is below what was initially planned when we look at that graph. We know that it's a five years plan, but this year, cash generation should be less than planned. And you are keeping that cap as guidance for this year and also for next year. So my question is, what is the flexibility depending on oil prices and changes in oil prices vis-a-vis this investment plan and also vis-a-vis the debt or indebtedness limit the company has. Of course, considering also the payment of dividends. So in this scenario with lower oil prices, you are talking a lot about profitability of projects. They have to show that they are profitable to be approved, but in which level of oil prices Could we see not cancellation of progress, but maybe postponing projects towards the end of the plan because of lower cash generation, more in the short term? Thank you. Luis. Well, let's talk a bit about this topic. I think that the first thing is that last year we adjusted our debt level so that we could have a little bit more flexibility, so that we could consider the scenario that occurred, reduction in bread prices and thus reduction in revenue. So it's still at the limit of our debt. We can still take some investments in the short term, meaning for this year, we have this capex of 18.5. We have many contracts that have already been signed. So we have scheduled that and this should happen. The flexibility will take place when we build the strategic plan for 26, 2030. Then we'll have to reevaluate some projects. Actually, we will look again at all assumptions and include these assumptions on the projects and see which ones are feasible. Those who are not, They will be along the way, or maybe they will be postponed, or we will look for engineering alternatives that will lead to lower cap tax so that it's financially feasible. As our CEO said, we had one project and the first time it went back so that we could rethink how our engineering would work and whether that would be more profitable alternatives, because we understand that at the current price levels with this very volatile world scenario, we should have some flexibility for that. Well, dividends will continue at the same levels. There are no discussions going on in terms of changes regarding the ordinary now for the extraordinary with lower revenue, we would have a harder time paying extraordinary dividends, even though we would really like very much to have surplus cash in order to pay extraordinary dividends. But I think the probability for this year is pretty low. I would like to add and then give the floor to Director Renata to further elaborate on that. But often we are dealing not only with the engineering of the projects, but how we contract projects. So when we look, for example, at this issue of contracting Rennes, so the mere change in the way we contract and publicizing the price and the dilution of the lots in a larger number of lots, these meant a saving of 1 billion Brazilian reals for our company. So we had a work forbidding, we changed how these packages would be contracted and we diluted a lot of number of packages to have more competition. And with that, we could save 1 billion Brazilian reals and we are multiplying this effort in other works. And I'll give the floor to Renata to further elaborate on that because after all, this is a major effort being carried out for her team. So we really have been thinking out of the box when the CEO invited us to take this position, she said, you should do it differently. And this is what we have been doing. And one of the things we have been doing differently, which is POT, Just to give you an idea, BOT enables us to change specifications during the bidding process because this is a conceptual concept. It's designed so you can change requirements in this conceptual design. With this initiative and with a lot of discussions with the market, in the past, we had some restrictions, but Only with this move alone, we could reduce the weight of CI platforms between 15 to 20%. That alone represents a cost reduction that is very significant. We will open these packages in September the 30th and We expect that with that, we will really have a significant reduction in prices. As our CEO said, depending on the market, on the scenario, depending on the demands, depending on how the world is, depending on geopolitics, every contract has a different strategy so that we can take the best possible of all our contracts. Thank you, Magda. Thank you, Fernando, Renata. Thank you, Luis, for your question. So we are coming to the end of our webcast. We will close the Q&A session. If you have any additional questions, you can send it to our investor relations team and we will answer them later. So I'd like to thank you all for having joined our webcast. And I will give the floor to Fernando and to Magda for their final remarks. Fernando, Magda, the floor is yours. Well, I'd like to thank you all for joining us. I'd like to say that our team is really available. If you have any further questions, we are all always at our disposal. Well, to close, I would like to say that we're really happy because we could show what a proper, well thought of and planned CAPEX can do, which was to increase production. In our view, this will really stay for a very long time with very positive prospects looking forward. And with new equipment coming, with new production equipment starting up. So I think that our increase will be more than our decrease. And in the next five years, we are really sure that this will take place. Production was better. And with that, it offset reduction in brand prices. And this was very important for our earnings so that we could continue complete our strategic plan as we plan. And all contracts regarding distribution will be complied with. We have contracts. There is no discussion, no argument. We will comply with all these contracts. This is a commitment we have. So thank you all very much. And we are available and also doing the this week to discuss any issues you deem necessary. Well, to close, I would like to thank you all for joining us in this webcast and thank you all for the attention you give to Petrobras and Petrobras businesses. I agree with Fernando and I would like to again say that We are really willing to meet everything that has been planned, offering our investors, be it government or private investors, making sure that Petrobras really want to have profitable projects, optimizing its projects portfolio, and really making investments and projects that are as efficient as possible. We have wonderful actions from exploration and production, very attractive projects, including refining and sales. We are making money. We have 24% renewable energy in Asia expanding our market We are making money. We are at spending production of business with profitability, very high levels of profitability. So you can all be reassured that Petrobras is making an effort and that this board is really making an effort so that we can achieve the best results possible. Thank you all very much. Our doors are open and our investors' relationship And Eduardo is available so that we can answer all the questions you may have. And so whatever questions you have, just ask. Thank you all very much and have a nice day. Thank you, Magda. Thank you, Fernando. So the presentation will be made available at the Investors Relationship website. And soon we will also make the audio available Thank you all very much for having joined us and see you in the next webcast.