Petroleo Brasileiro S.A. Petrobras ADS

Good afternoon and welcome to Petrobras' webcast with analysts and investors about our second quarter 2026 results. It's a pleasure to have you with us today. This event will be presented in Portuguese with simultaneous interpretation into English. Links for both languages are available on our investor relations website. All participants will follow the webcast. Magda Maria Chambriard, President of Petrobras, Angelica Laureano, Executive Officer for Logistics, Commercialization and Market, Clarice Coppetti, Executive Officer for Corporate Affair Fernando Melgarejo, Chief Financial and Investor Relations Officer Renata Baruzzi, Executive Officer for Engineering, Technology and Innovation Ricardo Wagner, Chief Governance and Compliance Officer Sylvia Anjos, Chief Exploration and Production Officer William Franca, Chief Industrial Processes and Products Officer William Nizaki, Acting Executive Officer for Energy Transition and Sustainability To begin with, I will hand it over to our President Magda Chambriard for her remarks. President, please go ahead. Good morning, everyone. It's a pleasure to be with you today to demonstrate once again Petrobras' capacity to surpass its goals and deliver impressive results to our investors, be they from the public or private sectors. We have the full board of Petrobras with us and I'd like to take the opportunity to greet all investors, all of the representatives of our investors, all of the executives that are in this session with us and our partners and everybody that joined us remotely for the disclosure of our second quarter 2026 results. Also, I'd like to greet everybody from the press joining us. We become increasingly prouder of our results. It's a pleasure to be here once again joined by you to once again present another result that surpassed the previous ones, a result of our intensive work with our diverse teams working in a partnership to deliver an increasing amount of oil, gas, and byproducts In the first quarter of 2026, we reached several records. And in the second quarter, we surpassed them with important milestones once again. We reached... and I must highlight this we reached the highest net profit on a recurring basis for the quarter in dollars in the history of Petrobras this recurring profit excludes Thank you for watching Petrobras ADS. Thank you very much. Oil prices above that one in the past and nonetheless we achieved the highest recurring results in terms of net profits in the history of Petrobras. Our key differentiator which we're proud of is operational administration which is shared with the company's several different departments. Operational records in terms of the production of oil, gas, refining, and selling of products. That's been our commitment. In the quarter, we produced 2.7 billion barrels of oil per day, in addition to gas. If we consider in... Thank you for joining us. We surpassed the goal of the second quarter by 200,000 barrels of oil per day that's due among other factors to increased efficiency in the production of platforms and also By pushing forward the delivery of projects, you probably remember that we pushed forward the delivery and the wrap-up of P78 as well as the delivery and the ramp-up of P79. Other platforms will come. Some of them are already arriving this year. And once again, I'm going to repeat that. we will move forward the delivery of big projects with greater volumes we also increased our oil export levels with an additional 12 percent in this quarter and these sales become greater revenue and cash generation and here I must make a side note to highlight in addition to the work involved in production and the engineering work involved in these projects the participation of refining by refining and teaching our buyers to further and further refine our oil and to further and also with the participation of logistics at Petrobras with the intent of broadening the market for our end product which is oil was And once again, it was these events and the joint work of all departments of Petrobras dedicated to the same purpose and the same goal that allowed us to achieve these great results. Carlos Henrique de Araujo The cash flow that's being generated today will be used to fund Petrobras' growth. And I'd like to say that just like the company was successful in its first 72 years, we are preparing the company to successfully take on the following 72 years. The refining teams, in addition to production and engineering, did a great job. The utilization factor of our refineries surpassed 100% in the second quarter of 2026. and here at the company we got into the habit of saying that goals are for the weak of heart Petrobras is proud to always surpass its goals we've increased the processing maintaining the same diesel yield and gasoline which is equivalent to greater revenue for Petrobras and a greater value to our shareholders, be they public or private. Without losing sight of capital discipline, the production of byproducts grew 6% vis-a-vis the previous quarter. And with that, Thank you for watching. Thank you for watching. and that's why we invest with capital discipline prioritizing projects of high returns all of our investments involve rigorous governance Renata Faria Rodrigues Baruzzi Lopes Once again, be they comprised by our public or private shareholders and respect the governance. And we need to reiterate that every day is a pillar of our administration. We will... Continue focusing on our business plan which is well known to all of you with the commitment to deliver to society a Petrobras that's profitable and absolutely relevant to our country. I will now give the floor to our CFO Fernando Melgarejo who will dive into the details of the second quarter of 2026 and I want to thank you for listening to us. Thank you all for your presence. Thank you President. Good morning, everyone. Thank you for joining us for this webcast for the results of the second quarter of 2026. I also want to greet everybody that's here at the headquarters of the company. As we said, we had a quarter of record operating performance, which drove Petrobras to one of its best financial results in history. Thank you very much. One of the highlights of this administration, the search for increased oil production, production efficiency, accelerated ramp-ups that are also part of the records that we've been bringing to the company. If it were not for that, we wouldn't have achieved the financial records. Financial records are firmly anchored in the operating records of the company. Now let's move forward to slide 3. Our oil production, as the President already said, was 2.7 million barrels per day, a 15% increase over 12 months, which is equivalent to... 350,000 additional barrels if we compare this period to the same previous period. Personally, three platforms producing additionals in only one year. And as a reminder, last year we also had records in the third quarter. It was an additional 4%.

And that's quite relevant.

And we were always wondering where we would get to, and now we can demonstrate with our production that we are reaching our goals, surpassing some indicators as well. Alexandre Guzman for instance at the Meadowfield is producing 100,000 barrels and P78 at Buzio's 120,000 and both have the capacity to produce 180,000 barrels per day that is to say that we have a greater capacity to achieve in addition to the record-breaking capacity we still have some room to cover when they're at the nominal capacity level We'll add another 90,000 barrels per day. And we also have the ramp up of P79, as I said, which started operations in May this year and has a capacity of 180,000 barrels. In summary, even with the record production of 2.7 million barrels of oil per day, we still have 270,000 barrels per day of capacity to ramp up in the second half. Another highlight has been the increase in production of certain platforms beyond their nameplate capacities. The Almirante Tamandaré FPSO in Búzios has an original capacity of 225,000 barrels, which makes it a large-scale platform. And the unit has reached a peak production of 270,000 barrels per day and is currently the highest-producing platform in Brazil. It's a huge platform in a huge field with a very positive potential for the next years. In addition to Almirante Tamandaré, we have another six platforms adapted to operate above their original capacity. Today, this additional capacity already totals more than 100,000 barrels per day, practically a new population.

The important thing is that we are increasing production safely and we're doing that without the need for additional construction work, which allows us to increase revenue and cash flow immediately without the need for any additional investment. So it's only revenue without any investment, which is quite positive. Now before moving over to the next slide, I'd like to highlight important news from this week. We announced a new gas discovery of gas in Colombia, which confirms the region's gas potential. Now, this is a project which is aligned with our long-term strategy, which seeks to replenish reserves through exploration across new frontiers. So this doesn't mean that the Brazilian land is not our priority. Brazil still is our focus, but we are an international company, so we need to look across our borders as well. Let's finally move on to slide four, talking about CapEx. In the second quarter of this year, as we can see on the slide, we invested $5.3 billion. and more than 80% of that investment in fact 82% is focused on E&P projects focusing on increasing production with high returns for the company. We have a few examples here on the slide versus the previous quarter. We increased well drilling by 40% and 45% in well completions. Interconnections also increased by 43%, driven by the ramp-up of Buzios VI and Buzios VIII, as well as complementary wells, which helped to maximize the production for each production unit. Part of the investment was also allocated to advancing the construction of new platforms in Buzios, such as P78, P82, and P83. These are all huge platforms, each with nameplate capacity of 225,000 barrels. We expect to hear positive news with regards to moving ahead of schedule, much like what happened to P79. So now over to slide 5, talking a little about our products. In refining, we hit a record refinery utilization with a 101% FUT, increasing production by 68% of the yield mix in higher value-added products. In April and May, we came to about 102% FUT, a record for the company. We've been working with very low FUT rates. And another important point, usually when FUT increases, That's because we're focusing on lower value-added products. But in this case, we continue to see the same shares for higher value-added products with diesel, jet fuel, and gasoline, which makes these even more effective refineries. As a result, we expanded the supply of our own products and reduced the need for imports, especially diesel, which we still need to import. We're essentially self-sufficient in terms of gasoline. And that's all because we have produced more. We also increased oil product output by 6% and reduced our imports by 40% versus the previous quarter. Again, this increases even more the company's efficiency and cash flow. Another factor with a positive impact for us were our imports. Even though we were processing more oil, production was so much higher that refining has increased and our exports of Brazilian products also increased. We were already seeing high exports in the first or in the second quarter, but increased even more in Q3. My apologies, we just heard something from our civil defense, so we had to interrupt, but just jumping in now. We saw an increase by 12% in experts for the company and reached very significant increase in our experts of oil, which improved our cash flow even more. Moving over to the following slides, slide six, a little bit about our financial results. We can see our EBITDA and net profit. All of these operating records Ricardo Baruzzi Lopes Renata Faria Rodrigues Baruzzi Lopes Thank you for joining us today. All of that, as we keep repeating, anchored in our stupendous operating performance, which is what making the difference. The higher volume of oil and oil product production and sales combined with higher brand prices has strengthened our cash generation with operating cash flow of 12.3 billion for the quarter, growth of nearly 50% when compared with the previous quarter. So these are very strong results, and I therefore emphasize we did not have record brand prices, but we did have record production, which drove our financial results this quarter. Now moving over to slide seven, a little bit about our debt. This year we carried out a very important initiative to renegotiate contracts for recharters and wealth services. Renata Faria Rodrigues Baruzzi Lopes, Bruno Motta, William Franca da Silva, Angelica Garcia Cobas which will allow us to reach our goals now because the amendments extending the contract terms were signed in the second quarter we had to reorganize the value of these contracts and lease liabilities immediately so these increase in the short term but we reduce our future disbursements and cash flow creating value and that's the key benefit and that's how it has to work now on this slide we can also see the increase in lease liabilities but the reduction in financial debt offset the increase as you can see in the third column so this was possible due to our prepayments during the quarter we repaid loans and financing totaling 2.9 billion dollars close to 3 billion Notably, the prepayment of 1.4 billion in bank market transactions and the repurchase and redemption of 700 million in bonds issued in the international capital markets. Also during this quarter, we opportunely raised about $600 million. We therefore ended the quarter with gross debt of $70.8 billion and a net debt of $60.4 billion. Without the recognition of the lease contract amendments, our debt would have been at the same level as in 2025, which is what you see in the first column on the slide. Even so, the trend is still downward. We maintain our expectation of converging to $65 billion over the horizon of this plan, a level that optimizes our capital structure. Moving over to the following slide. Now looking at our forecasts for the year. Here we have a snapshot of how we're progressing this semester versus our projections which were laid out in 2025 and presented in our strategic plan. Reduction has remained above the top of the range and we're working hard to exceed the target. Ricardo Baruzzi Lopes, Bruno Motta, William Franca da Silva, Angelica Garcia Cobas Laureano With regard to cash investments, we expect to end the year at the top of the range. The projection is $16.9 billion with a 5% margin, give or take. And if we have to bring any investment forward, that will be because it'll create more added value and bring more value ahead of schedule for the company. Of course, we've pursued bringing projects forward, but not bringing costs forward. We pursue delivery, but we do not want higher project costs. We are making the most to accelerate delivery without increasing them. Operating expenses are slightly above plan for this half of the year, pressured by higher freight and logistics, which lead to increased production as well as exchange rate effects. So we total $11.7 billion in this half of the year versus a full year plan of $20.2 billion. We're monitoring the situation and expenses may exceed the projection if global market logistics costs and exchange rates remain at the same levels in the next few six months period. We believe that there will be less uncertainty in the next quarter and if need be we will revise the figures obviously with full transparency to all our stakeholders. So moving over to the next slide about our collections. Here we see an example of the positive effects that our improved operating results have on society at large. When we produce more, we pay more taxes. So we've paid 88.6 billion reais in taxes and government take in the second quarter alone, 500 million to municipalities, 31.5 billion to state governments, Petrobras paid about $22 billion more in taxes and government take versus the second quarter of last year. On an annualized basis, we're talking about an increase in taxes. The government take in Texas of close to $90 billion, additional $90 billion for the government purse a year. So now I conclude my presentation with the message that we're reaffirming our commitment to growing the company with profitability and responsibility when it comes to capital. Petrobras' success does not remain within the company. It is shared with society as a whole. Once again, thank you all for your attention. and alongside all our other executive officers and the president we're available to answer all of your questions. I will now hand it back to Eduardo who will begin our question and answer session.

Thank you Magda and Fernando. We'll now start our Q&A session. I kindly ask the participants to only ask one question so that we are able to make better use of our time. The first question comes from Bruno Montanari from Morgan Stanley. Please proceed Bruno. Thank you and good afternoon everybody. Congratulations on the results, especially for the execution and production growth. And focusing on production, the President Fernando already gave us an idea of by how much the production could grow this year, but I'd like to see if it's fair to say that the Thank you very much. Thank you for your question, Bruno. We have to remember that we work with non-renewable resources. Producing 2.7 million barrels every day per day is a challenge. Thank you very much. Thank you for watching. and the platforms that went into production recently and with the ramp up achieving its peak we will achieve the planned results and likely surpass them however surpassing results is something that we like delivering without promising anything previously With that, I'll give the floor to Sylvia and Renata. Renata will talk about the new platforms that will go into production. They're arriving soon in Brazil. They're leaving Asia and coming to Brazil. But I'd like to mention an important aspect. The first A huge platform that's different from the previous ones that we had at Petrobras was Almirante Tamandaré, with a capacity of 225,000 barrels per day. That platform, as Fernando mentioned, Thank you for watching. Production capacity of Petrobras by interconnecting wells and doing a better job of managing the deposits and drilling high productivity wells and connecting the platforms with all of that, all of these efforts led us to transform a platform and move it from a capacity of 225,000 to a production capacity of 270,000 barrels per day. But that alone is not enough. Thank you very much. Seeking to achieve 270,000 barrels per day in terms of capacity. So at the end of the day, that means 45,000 barrels per day times four, or 180,000. We do better management of deposits. We do a better job of managing platforms with better efficiency, better platform design. Leading to bottleneckings in giant platforms and that's what we've been delivering and which combined leads to this increased production. Well, we're talking about production, but we're doing the same thing in the refineries. I mentioned this and Fernando did it too. The utilization factor of our refineries, which in the past would achieve 65 or 70%, currently surpasses 100%. With Petrobras' capacity or purpose to every day surpass its best results and deliver them to its shareholders from the public or private market, Renata will talk about the stage delivery of the new platforms and Sylvia will talk about the ramp up of P78 and P79. Over to you, Renata. Hi, Bruno. Good afternoon. So we'll talk about P80, 82 and 83. P80 and P82. The CLOA is scheduled for the third quarter of 2026 and production will start in the second quarter of 2027. What we're doing now is we're working strongly towards bringing forward the production of P80 to the first quarter of 2027. For P83, the CLOA is scheduled to occur in the beginning of the first quarter of 2027 with Bruno Motta, William Franca da Silva, Angelica Garcia Cobas The second half, historically speaking, has worse sea conditions than the first half. So we cannot safely say that we will be able to bring it forward due to weather issues. So we're working on bringing it forward. P80 for the first quarter and the other ones are already scheduled to start operations. Thank you. Thank you Bruno for your questions. I'm sorry. Thank you, Bruno, for your questions. Just picking up on what the President said, and also what Renata said, the forecast for production is based on a risk analysis of everything that's scheduled. We have scheduled the ramp-up for 78, for 79, all of that's been included in our risk analysis, and we always like to work with a leeway of more or less 4%. and we'll certainly reach the top of guidance always seeking to surpass the past results as the president likes to say but right now we're considering it reasonable to maintain the maximum of at four percent reaching 2.6 we know that there is the down times and uh one thing that we always like to highlight is that we're receiving These super huge platforms, 220,000, and our concern is how are we going to work with the downtimes of a super huge platform like this one? We've been strongly investing in three things, which is to do a better job of planning downtimes, also working on the timelines and the headcount capacity like we do in F1, and that's what we want to do with the platforms. And with these scheduled downtimes, you can imagine that with the downtime of one month, if you reduce it by a week or even three days, that's a lot of additional oil. So we've been focusing heavily on scheduled downtimes. And another thing is to guarantee production. We're working on the integrity of platforms. We're reaching a record number of reducing the technical inspection recommendations. And we do that because by doing proper maintenance and by taking care of integrity so that we can have less downtime and make sure that with the scheduled downtimes we can maintain our stability. Just to give an idea of the scheduled downtimes for the year, we expect 290,000 barrels per day during the downtime. Also, about production, we'll try to reach maximum production, but the guidance includes all possible variations, equipment inspections and any other occurrences. Thank you, Sylvia and Magda, Renata. Thank you, Bruno, for your question. Now let's move forward. The next question comes from Moniki Greco from Ito BBA. Over to you, Moniki. Hi, good afternoon everybody and thank you for the opportunity to ask questions or to ask a question. I'd like to broach the subject of the diesel import strategy. How is the company assessing the decision to import diesel given the current price scenario vis-a-vis its pricing strategy and its commercial strategy especially now that with the you know there is a huge volatility but with the Hi Monique, this is Angelica. Let's go over our production planning process again. It takes into account the commitments we enter into with our customers and the seasonal variations in demand. Also, our refining activities and how much of it is available, the refining margins and the logistics structures. We consider all of that. Given that context, our policies maintained, our commercial strategy is maintained, our Importing decisions are still based on the criteria of competitiveness and profitability. And we have to say that we have a public policy in force that gives us support for the internal market and that leads the customer perceived prices to be lower. Thank you, Angelica and Monique. Next question comes from George Gabri from Scotiabank. George, you have the floor. Good afternoon and congratulations on the results, especially in terms of the volumes. I'd like to go back to one issue that was already broached before from the perspective of decline. The Petrobras decline is quite low at 4% more or less in the pre-salt. And I'd like to understand how sustainable that is moving forward. If you think about the forecast for the next few years, how do you see this decline behaving in the next few years? Thank you. Well, Jorge, thank you for your question. This decline, as I said, is the result of a strategy. Thank you for watching. and more than 1,200 square kilometers if we compare that to a giant post-salt field, which was the reality that was and many more. Thank you very much. Silvia Maria Couto dos Anjos There's a natural decline, Georgie, and we attempt to fight against it. We work more strongly on four areas. First, 4D seismics, which better allows us to better understand the reservoirs. We also do intelligent completion. Our biggest production comes from pre-salt and its huge reservoirs at the height of the sugar loaf and the giant completion allows us to separate zones that produce water or gas and we do a... Magda Maria Couto Record-breaking numbers in terms of water injection guaranteeing a better pressurization of reservoirs, and that's another factor that reduces decline. And obviously, the supplemental project. Once we know the deposit, the seismic data allows us to better drill the wells, we have the supplemental wells well-positioned, thus guaranteeing this replacement. In 2P... We've been able to maintain a very significant production level. And not only for us, for our results, but it's been significantly contributing to the results of our partners as well. And we've been considering the Petrobras results something positive for the results achieved. And Brazil is one of the most important production areas for our partners as well.

Thank you, Sylvia and Magda, and also thank you, Jorge, for your question. Our next question comes from Yuri Pereira with Centendir. Yuri, you have the conference. Good afternoon, everyone. Thank you for taking my question. With the very favorable cash generation environment both because of market circumstances of the company itself. I wanted to understand how that works versus your plan for 2026-2030 for example thinking about the allocation of this incremental capital that's coming over throughout this year with regards to refining or maybe another ambition Petrobras has in mind. Thank you. Good afternoon, Yuri. Well, this is an ongoing discussion for us. Wherever we go, any meeting we have, the question always comes up, what will we do with the additional cash flow that's coming up? Bruno Motta, William Franca da Silva, Angelica Garcia Cobas Laureano and many more. Thank you very much. P18 and so on and so forth so any investment that generates returns to our stakeholders we are bringing forward so that's our priority number one priority number two is to converge the debt as quickly as possible to 16.5 billion dollars that's the ambition we had in our strategic planning which was supposed to take place in the end of this five-year period ending in 2030 so the idea is to bring that slightly forward We're already in August and we're already looking into the new strategic planning for the company. And we'll be discussing questions that escape the current strategic planning. So it is within that realm that those discussions will take place. With regards to extraordinary dividend sharing, we... Ricardo Baruzzi Lopes Renata Faria Rodrigues Baruzzi Lopes, Bruno Motta, William Franca da Silva, Angelica Garcia Cobas Laureano That's very unlikely now because first Brent is expected to stay at the same level for quite a while and that's also a challenge for next year because it is expected to move back to the levels we expected it to be when we built and designed our 2025 to 2030 strategic plan. Thank you Fernando and thank you Yuri for your question. Our next question comes from Gabriel Barra with Citi. Gabriel please go ahead. Thank you, Eduardo, and thank you for taking my question to all the Petrobras team. I wanted to touch on something we haven't talked about yet, which is Braskem. We have been getting a lot of questions. We're seeing the companies at a very tricky time. We're seeing news about a potential... Legal Reorganization, and Petrobras has some active input in these conversations. My question is, how do you see that from Petrobras' side? I understand there's a number of rules with governance, and there's great concern about capital allocation, so... Maybe more discussions about a potential capital injection into Braskem. So I wanted to hear from you. What is your stance on Braskem's future? It seems the company is moving toward court-ordered reorganization. And what we're hearing now is that's where they're headed. So what I'd like to hear from you is To help our discussion is how have you been approaching that issue? What's the conversation with bondholders like and what should be the outcome in your opinion? Well, I'll start with my five cents, but then I'll turn over to Fernando. As you know, We had very little input in terms of Braskem's bylaws. This latest change gave Petrobras more political power. So we're now or only now moving closer to the company to look into what's going on with Braskem with a new set of eyes and to understand what the future of Braskem might be. I would like to not say a lot more about Braskem right now because they will be sharing their earnings next week, but I'd like to turn over to our director, Fernando, to talk about this within the realm of possibility at this point. Yeah, I think we have to take a step back when it comes to Brascam to remember that we have a new shareholders agreement, as the president mentioned, where our economic capital within the company is compared to the political power and influences in the company's decisions. Now that's happened over two months ago and since then we are looking into all our options within the agreement we have with shareholders. We are in touch with their board of directors. So, there is an injunction in place, which is in the public domain, as you mentioned. It ends on October 24th, and as the President mentioned as well, on August 13th, that company will be sharing their earnings with the market. So this is a very sensitive time. We have a lot of decisions to make. So obviously we can't say a lot more in terms of any other information we have, which may affect the negotiations. Thank you, Fernando. Thank you, Magda. And thank you, Gabriel, for your question. So let's move forward with the next question. Liliana Yang with HSBC. Liliana, please go ahead.

Hello, can you hear me?

Yes, we hear you perfectly. Go ahead. Thank you so much for the opportunity. Congratulations on your results. I have a more generic question in terms of energy policy. One has to do with gas. The Brazilian government would like to lower gas prices for Brazilian consumers. And I'd like to hear from you about the role of Petrobras. Will Petrobras be able to be a part or to contribute with this process? Where, for example, would you sell the gas coming from Sergipe? And another question is, in terms of new frontiers, we have the equatorial margin, but also initiatives in Africa. Could you give us an update about your investments in Namibia, Santo Domingo, and other areas outside of Brazil? Let me start, and then maybe Angelica, William, and Sylvia may add to my few words. Starting with gas, we have a few oil and gas projects. Our projects are usually focused on oil with an associated part of production. Rodrigues Baruzzi Lopes, Bruno Motta, William Franca da Silva, Angelica Garcia Cobas Laureano With regards to the discussion around gas, we don't know yet how things will end up. The fact is, regardless of what happens, we'll have to look at our projects in light of any regulatory change. That's true everywhere in the world. It would not be different for Petrobras. So any project has to be lucrative for the company as our director Fernando has already said. We're not an NGO. We are a company and we have to be profitable. That being the case, any change that takes place in the realm of regulations or taxes or anything of that sort will Thank you very much. Look back at those projects and reassess them. We have to make sure that wherever we invest brings the necessary returns. That's the logic. Thank you so much. Just adding to President Magda's comments. Retrobras' assessment of these regulatory changes have been outlined over the past few weeks. This is the board's position, which is the mere transference of the gas molecule's ownership is not going to www.patreon.com.br They're already bigger than Petrobras. So our assessment is that regulatory stability and legal certainty are critical to maintain previsibility discipline when it comes to capital investments. As the president said, everyone in Petrobras has robust governance within our discipline in investments in capital. Every project assessment will consider the regulatory scenario. So any change will inevitably require a reassessment. But a draft has been made available today. Petrobras will spoke up in the next 45 days via a public hearing, and that's our position. Yeah, I just wanted to add that, as William Nosek has already said, we're only 15.6% of the market. So the market is already open. Renata Faria Rodrigues Baruzzi Lopes, Bruno Motta, William Franca da Silva, Angelica Garcia Cobas Laureano We have extended the profile of our contracts and offered alternatives to prevent price increases, which is to say Petrobras is always looking to reduce the impact of gas price volatilities in the industry, especially in Brazil. And as William has said, With regards to the gas release issue, we're still waiting to see what the regulatory agency's position will be. And we're at a time where SAP can still look into alternatives. And within that context, we're still looking into alternatives when it comes to supply. From the E&P standpoint, what we're doing is, over the last few years, we have significantly increased gas exports, which were coming closer to 50 cubic meters. So we are making more gas available and we believe that it is only by offering more gas that we can reduce prices. Also increasing gas productions in land in Uruguay. And on the issue of gas, we've also discovered more gas in Colombia. All those three discoveries exceed Colombia's needs, so it's another opportunity to export gas and supply more gas to the country. Going back to Africa, to your other question, we also have been investing and exploring about $7 billion, $2.5 billion in the equatorial margin, $2.4 billion in the southeast margin, and about $2.2 billion invested in other areas, including overseas, which includes Africa. We have hired areas in South Africa in partnership with Total. We have partnerships with Shell. We have partnerships in Namibia. We're looking into other opportunities as well. So internationally speaking, the Ivory Coast and Mexico are also places we're looking into, always with the purpose of replenishing and increase our reservoirs, considering that our production is on the rise. Thank you, Angelica, Sylvia, William, Magda. Also, thank you, Lily, for your question. Our next question comes from Teso Vasconcelos with UBS. Teso, please go ahead.

Thank you. Good afternoon to the entire team. Picking up on the last discussion, Petrobras team's been quite emphatic about the subject. The replacement of reserves with new discoveries but moving away from this domestic scenario in your opinion what are the main priorities for international expansion if it really occurs so we discussed that in the previous question but I'd like to further understand where you see more of an upside and where the Petrobras team is interested in dedicating more time to the analysis we talked about Mexico, Venezuela, Bolivia also appears to be back on the radar so I'd like to hear your take on that if you look at a scenario outside of Brazil where would you focus if these expansions truly occur? Thank you Tasso for the question. We've been saying repeatedly that there is no future for an oil company without exploration and without the replacement of reserves. And along those lines, what we do is to try to reinforce our expertise, which In South America, we've been working for more than 30 years. We import and produce gas in Bolivia for more than 30 years now. We've been importing gas from Argentina for at least two years. Reverting Ricardo Baruzzi Lopes, Bruno Motta, William Franca da Silva, Angelica Garcia Cobas A big action field for Petrobras for at least three decades, which reinforces our knowledge of the area and our search for new opportunities in these places. The same thing occurs with Mexico. If you take Mexico in the past, More or less 10 years ago, we used to focus on the exploration of deep waters that we used to call the Golden Triangle, which was comprised of Brazil, Africa, and the Gulf of Mexico. With similarities in terms of exploration and design approaches and all of that. So in that regard, Africa due to geological similarities and also similarities in terms of its approach to production and engineering, it's also one of our targets, especially the Atlantic margin of Africa. And if you look and everything at all of that we similar to the ones that we faced in Brazil where for instance we drilled pre-salt in the south of Espirito Santo in the campus basin in 2002 and we didn't see it we overlooked it and once again we paid attention to it only six years after that After we discovered a deposit of 1 billion barrels of recoverable oil. So our learnings at Petrobras in terms of geology, production, and the selling of products, all of that, From the perspective of a geopolitical partnership, that seems to be quite profitable to us. That's the direction we're headed. Now I'll give the floor to Sylvia since she's been monitoring these aspects from up close. She's the exploration and production director. As Magda put very well, we have... and the exploration of deep and ultra deep waters. So when we go to these African opportunities, we are actually talking about very similar areas that we have a high amount of knowledge about. So in the African coast, in Mexico, the equatorial margin, We are looking for turbiditic reservoirs that are similar to the ones that we have at Campos Basin. So the pre-salt is quite unique and exclusive to the Santos Basin and in Mexico We have the salt diaphores and reservoirs and the PEMEX expertise is not that high in deep and ultra deep waters. They concentrate mostly on shallow waters. So we have this non-binding MOU. We are now surveying seismic data. so that we are able to analyze what areas could add value and be interesting to Petrobras and Pemex so so far we are collecting seismic data and further ahead we will have an opinion on what areas could be interesting to us Thank you Tasso, Magda, and Sylvia. The next question comes from Lynn Clifford from JP Morgan. Please, Melanie, go ahead. Hi, good afternoon. Thanks for taking my question. I'd like a quick follow-up about Downstream. You talked about the important strategy considering seasonality, but I'd like to hear from you how the company sees the scenario of crack spreads for the second half and the maintenance strategy for refineries in that scope. You've been running the refining farm at above 102%. and we heard about downtimes as well in the second half so um talking about the refining farm and what can we expect in terms of timing and duration of these downtimes for the second half thank you thank you for the question The third quarter is, from a seasonal perspective, a quarter of higher diesel demand. So given that context, our operating planning takes that into account. And obviously in this quarter, we're going to have to import. And the cracking of diesel has led us to attempt to produce as much diesel as we can internally. So given that context, we have an operating planning that's done in close conjunction with refining so as to maximize the use of our refineries so as to minimize imports. In any case, imports are happening naturally with no problems whatsoever. There is no shortage of diesel in the market right now. Hi Melanie, thank you for the question. That's a very important question because It will allow me to clarify certain things. When we postponed the downtimes of Higapi and Replan, well, we have no postponed downtimes for the second half. The downtimes that are going to occur are the catalytic cracking FCC downtimes and the Repar downtime. And the Cubatown diesel downtime was already scheduled. Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruzzi Lopes, Fernando Melgarejo, Renata Faria Rodrigues Baruz www.marcoparet.com.br We have two important expansions at Revamp and Replan and Regap that will lead us to an additional load of 10,000, almost 10,000 cubic meters per day of additional load. www.patreon.com.br Renata with engineering will be delivering that at the end of the year. We're going to up the load. That's at 140 at Renest and that's a result of a very important work. Thank you for watching. The postponement of these downtimes for Regap and Replan, they were scheduled for March, and in April, May, June, and July, we had very important results in terms of foot. In July, we were able to reach a record-breaking production level for diesel vehicles. We reached 101.2 versus 101.1 in the third quarter of 2014. So that was a historical record. With 70% of average yields, 5% above the yield of that previous record. So it gives us more revenue with aviation kerosene and it's a greater result than that of that previous record with a greater FUT, not to mention that So I talked about the FUT and in July we reached a historical diesel production record reaching 3,904,000 cubic meters of total diesel production in July. So that shows us that our decision is Angelica Garcia Cobas Laureano Angelica Garcia Cobas and with a guaranteed safety and security so we have zero or three In terms of the rate of recordable incidents, which is a very good result, way below the best average of our global benchmarks, showing that it is all about the load, the FUT, and the reliability of the units. Thank you for your question.

Yeah, I just wanted to reinforce or to stress what William said. Remembering of two things that we're doing. First one, we are exceeding our targets. And number two, we are replacing Petrobras' refining capacity so that we are able to produce increasingly more value-added products and less regular products. Diesel has been our flagship and and the results that you're seeing with regards to diesel are a result of that effort. Thank you Magda, thank you Angelica and thank you William and thank you Bruno for your question as well. Our next question comes from Rodrigo Almeida with BTG. Rodrigo, please go ahead. Thank you Eduardo, good afternoon everyone. Well, we talked a little bit about opportunities outside of Brazil. So I wanted to go back a little bit to that and maybe talk a little bit about opportunities in Brazil and mention maybe three projects that I think would be interesting for us to discuss a little bit further. First of all, I wanted to hear from you an update on your thoughts about Tupira. There's the issue of the extension of your concession or maybe a change. So I wonder if you have any updates on that sense and what you see moving forward. And also another project that saw A lot of success in exploration and it ends next year. So I wanted to hear from you about the project and whether you see the need for any adjustments and how do you see the economics of that asset? And then I also wanted to hear about the equatorial margin. I'd like to hear an update. Maybe should we expect any news from you over the next few weeks? And I just wanted to hear a little bit about that 2P, Alto de Cabo Frida Central, and the equatorial margins, if you could please touch on them. Well, let me tell you that 2P is now under negotiation. Any result that we... We have been talking to government institutions in terms of moving forward there. As for equatorial margin, we have said that before, but we continue to drill the block MFCA 49. and in addition to that well we are also waiting for the permit for other three wells in that block and if you remember the license we received last year was for one firm well plus three contingent wells nobody looks into an area of that size to drill only one well so Whether we find oil or not, our conclusion is the same. We need to continue to explore this area which is enormous. And in this block alone, BMFCA 49 alone, just to give you an example, our ask for the kickoff is for one firm well plus three contingent wells. We are now awaiting, since that time when we made the request for the permit and authorization to drill, in addition to this initial well, three more contingent wells. I will now turn over to Silvia who will talk more about the equatorial margin and the Alto de Cabo Frio. Yeah, as Magda said, we're moving forward with negotiations with 2P, so we have to wait for the assessment of all the stakeholders. As for equatorial margin, we are anxiously waiting for the drilling of this fall. All our challenges have been surpassed with technology and time. We are moving fast through the learning curve so that we can come to the next walls with a lot more speed and results but there are still 500 meters to go to reach the reservoir and this is one that we expect will provide a lot of well a lot of oil but If not, we will have to look into the contingent well so that we can understand what the area looks like. As I said earlier, we have 32 blocks in the equatorial margin and huge potential to explore this new frontier. That's what happened with the campus basin and the equatorial margin definitely need wells to be drilled so that we can accurately assess its potential. The existing potential that we've assessed, thinking about the Suriname and Guyana and Ghana wells, have been very positive. So we're now anxiously waiting for the end of the month when we expect to have that well. As I said, this is the eighth and last phase of the well drilling to ensure safety. And Alto de Cabo Frio Central, this is an area that we're still assessing alongside our partners. This is an area where we have a few challenges because of the Thank you, Sylvia. Thank you, Magda. And thank you, Rodrigo, for your question. Our next question comes from Vicente Falanga with Bradesco BBI. Vicente, please go ahead. Thank you, Magda and Petrobras team. The company has been very vocal on the media with regards to investments that obviously have been discussed already. But in addition to Africa, the Mexican Gulf and Latin America, recently we've also read about rare metals and assessment of the Jupiter Basin With the potential offshore exploration, how much do you plan to invest in that segment? I understand that rare metals sort of escape the company's main focus, so I just wanted to understand a little bit about that side. I think I can start. Indeed, the company has been growing and We've been focusing on the company's operational side, but we've also looked at new opportunities at the same time and every potential opportunity the company may seize to generate value to its shareholders. And everything that comes out and comes up in that sense, we have been looking into. We currently have no commitment in terms of investing in what you mentioned. We have made no commitment in that sense. These are only opportunities that we've been discussing and looking into and assessing both domestically and internationally. You mentioned Mexico. There's a very positive institutional aspect that may produce benefits for us in the future. But it's important to remember that any investment we make will have to be approved by the company's governance. Which will assess every remaining assessment. We use $50,000 flat throughout the process. We need to assess its economic feasibility and it has to fit our ambitions, which has to be very, it has to have a good fit. So thank you Fernando and thank you Vicente for your question. Our next and last question will come from Kyle Ribeiro with Bank of America. Kyle please go ahead. Good afternoon everyone and thank you for the opportunity. I have a question about capital allocation more specifically with regards to M&A. I wonder if you could add some color to what your priorities will look like with regards to going back to licensing and fuel or moving into ethanol or even purchasing the Mataripe refinery. If you could also talk a little bit about the timing of these decisions, when should we expect them to be made, also the timing for assessments and where it stands today, all of that would be very helpful. Thank you. I can start and if anyone finds it necessary, you can add to my answer. Well, we remain on track with what's in our strategic planning. That's the driver of our decision-making process. Obviously, we are building and other things may add to what we're doing if we understand that could be positive for bondholders. In terms of position, we have the non-compete with Fibra. And this will be honored in full. And maybe we can discuss that later and evolve if need be. We have an ambition when it comes to distribution, which is not on the retail side, but rather on the B2B side. We have a few projects in that sense, and they have been progressing well. And what we're seeing, we find very positive. As for Mataripe, as we said, there's due diligence in place. We have no news in that sense and negotiations have not moved forward so far. But as usual, if anything comes up, we will communicate to the market in due time. Well, I can talk specifically about ethanol. The topic is moving forward. As Margarejo said, it's still a priority within our business plan. We understand this is a priority segment and Brazil has maturity in terms of technology and public policy, but negotiations are still ongoing. And in due time, we will be communicating any development, respecting the confidentiality and Renata Faria Rodrigues Baruzzi Lopes, Renata Faria Rodrigues Baruzzi Lopes All impediments being removed, we will come back to the market with opportune news. Thank you so much, Caio, for your question, Fernando, Angelica, and Magda for your answer. We would like to thank everyone for joining us. This concludes. Our question and answer session and any additional question may be sent to our investor relations team. I will now hand it over to Petrobras' President Magda Chambriard for her closing remarks. President, please go ahead. Well, reiterating what we said before, Petrobras' performance has been very professional and guided By capital discipline, attention to our projects and our deposits, as well as our assets, so as to always maximize value with operational efficiency, respect to health and safety regulations. and that's what's guided the technical board of Petrobras and its advisory board as well with the purpose of delivering to our Bondholders, whether in the private or the public side, also guided by capital discipline, rest assured that will remain our policy. Thank you and I hope to see you by delivering equally satisfying results next quarter. Thank you. Thank you, Magda. A recording of this conference will be available for replay online. So good afternoon. Thank you. Have a great day.