Brava Energia S A S/Adr

Good day, ladies and gentlemen. Welcome to Brava Energia's earnings conference call to discuss fourth quarter 2024 results. The presentation and comments on the results will be made by the company's chief executive officer, Décio Odoni, and other management officers. We would like to point out that simultaneous interpreting is available on the platform. To access it, simply click on the interpretation button at the bottom of the screen and choose your preferred language. This conference call has been recorded and will be available on the company's investor relations website at ri.bravaenergia.com, as will the presentation that we will show here. We would like to inform you that all participants will be in listen-only mode during the presentation, after which we will begin the question and answer session when further instructions to participate will be provided. Before proceeding, we take this opportunity to advise that forward-looking statements are based on the beliefs and assumptions of Bravo Energia's management and current information available to the company. Forward-looking statements may involve risks and uncertainties since they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts and journalists should take into account that events related to the macroeconomic environment, market segments and other factors could cause results to differ materially from those expressed in such forward-looking statements. We will now begin the presentation, giving the floor to Mr. Dessio Odoni. Mr. Odoni, please go ahead. Good afternoon to all. We start this presentation of our earnings With the video Conquering Atlanta, we made available now on YouTube and I invite you all to watch it. If you haven't watched it, please do. Before we begin the presentation of our results, I would like to make some comments. We haven't spoken a lot in recent months. Our team has been focusing on operating deliveries by the company and we've been delivering a lot. But I think that now it's a timely moment to share some ideas with our investors. This is the first quarter in which we report the combined company. We had reported Q324 and that quarter was a partial version because in July of 2024, both companies, Enalta and 3R, were still operating independently. Although Q4 is the first one, it brings a snapshot of the past. The results we are bringing do not reflect the current moment of the company, nor the future of the company, because it translates a moment where we had a shutdown in Papa Terra and the transition from the early production system to full development of Atlanta. And that made the offshore production of the company to be well below what was expected, impacting cash generation and EBITDA for the quarter. In Q4 2004, we progressed in integrating the teams and completed the short, mid and long term integration of the company. In this work, we identified that only 5% of production was concentrated in half of our concessions, which required allocation of human capital and resources, which was unproportional to the results we were obtaining. Thus, in order to concentrate efforts on our main assets, the ones that are more profitable, we decided to sell some smaller fields. The announcement of this portfolio optimization process happened at a moment where we were facing operating difficulties at Atlanta and Papa Terra. So we got some manifestations of interest by banks and potential buyers. Interested in more relevant assets of our portfolio, namely our onshore fields, we have an obligation of assessing business alternatives suggested to us. So, even knowing that the value of onshore assets, particularly those located in Rio Grande do Norte, are leveraged by operating and financial synergies coming from the deal between Enalta and 3R, the management of the company started a process for these possible offerings to materialize so that we could assess them pragmatically and more in depth as the market was provoking us as a result of that we received unbinding offers for the totality of onshore assets of the company and we decided given the strategic importance and the benefit brought by the synergies not to move forward Thank you for watching! and considering the merger of the companies. All of these events influenced the market perception of the company and our share performance. But the quarter was not summarized in just that. It was not just that. We had a lot of other things happening in Q4. We started capturing the merger synergies. We proceeded with the integrity campaign for Papaterra facilities and we resumed the production in the end of December as planned when production was stopped. We put into operation FBSO Atlanta, and that was the first deep water oil production project conducted from the start by a Brazilian company. And this was done on time, on budget, which is not very common for such a large, complex project. Mega projects with investments above $500 million, 98% of them Go beyond budget and extend beyond the time frame. And that was not the case of Atlanta Field. And at the very end of last year, we completed the acquisition of 23% of BC10 and Parque dos Conchos operated by Shell. It is now part of our portfolio. We took the first steps to optimize the portfolios defined in the strategic planning. We sold 11 low production concessions. We forged the partnership for gas infrastructure in Rio Grande do Norte. We advanced in the integrity campaign of the facilities for mid and downstream, and we revisited our model of selling by product and acquiring and buying oil. We signed more long term contracts with some distributors. Also important, we changed the strategy and management of our onshore business. We completed most of the investments in improving the integrity of the assets in Rio Grande do Norte, in Bahia and in Ceará. We started focusing on projects that require fewer investments, particularly for tertiary recovery. or EOR. And on onshore, we increased efficiency of capex. For example, we reduced by almost half the number of rigs that we use. We are just focusing on projects with a profitability above 15% with a robust return for that kind of asset, which are less capital intensive with a shorter maturation. We reduced costs. We continue to reduce onshore costs. In February, we achieved A record production onshore, especially in Bahia. Never did we produce so much and we increased the EBITDA per barrel produced. This is a metric that we and the management want to monitor looking forward. We want to monitor this up close. In offshore, In addition to resuming production Papa Terra and starting production at FPSO Atlanta, we approved the second phase for Atlanta and the new wells for Papa Terra. We had mentioned that we were going to do this in in Q125 and we did it in Q4. And these have a return well above 25% per annum. which is our goal for Sea Investments. We signed new contracts evaluating production of oil at Atlanta and we started fiscal optimizations and liability management efforts that we need to have in place to capture synergies and gradually reduce the cost of our debt. In February we received good news. We hit a record production almost 74,000 barrels of oil equivalent and we are preparing to produce more than 80 with the new wells opening at Papaterra and Atlanta and concluding the work we are doing at the FPSO of both fields. So we expect to have better results and also the return of production at Manatee. From August to December 2024, in the period where we operated as an integrated company, variable compensation of the officers was zero. Bonus for short-term results was zero. And the retention program with shares that have been approved by the shareholders meeting was rolled over to 2025, subject to performance. We implemented a new culture, culture that recognizes performance and that stimulates meritocracy. These assumptions were adopted. In the design of the compensation package of the officers that we approved recently at the board. So for 2025, the management compensation will be detailed in the next shareholders meeting and it is in line with our culture. We have monthly salaries below market average and a compensation which is highly result dependent and dependent on unlocking share value. In my case, it gets to almost 90% of my compensation. Of the total compensation, 40% corresponds to a short-term bonus, which could be zero, as was the case in 2024, and 30% of the share program for 2025 with an exercise price above the current values. The remaining 10% refer to the share program of 2024 with also a tech price superior to the current share price. The company has a clear strategy. We are pursuing the strategy. We believe in the merit of a diversified portfolio, one balanced portfolio. We believe in scale. A company has to produce more than 80,000 barrels of oil equivalent daily. We believe that an oil company should operate with lower leverage, ideally 1 to 1.25 times EBITDA. So past the ramp up phase of production, we will operate with low leverage, remunerating our shareholders and preserving our growth capacity. Operational results are starting to appear. Production is increasing. Atlanta will have one of the most competitive lifting costs in the industry. Our onshore and offshore costs are dropping. Synergies are being captured. And as we have crossed the most capex-intensive phase and will benefit from production increase now, we are starting now a phase of greater cash generation. Leverage, as of now, tends to drop quickly. As our creditors agreed with the change in their calculation of the indebtedness indicators, So variations will be less volatile and less dependent on the foreign exchange. And as mentioned, we're implementing a culture that values people's contribution, a culture that strengthens meritocracy and encourages the sense of ownership of our employees. Today, officers are shareholders of the company. I am a shareholder of the company. More than that. Most of my personal assets are in Brava shares. Never have I sold a share as of 2025. Part of the bonus of all of the employees might be converted into company shares with a matching for the company. The goal with this measure is that all employees will become shareholders of the company and develop the attitude and behavior of being an owner. With this, we're building a robust, efficient and pragmatic company. with employees aligned with the shareholders in the permanent pursuit for better results as we are going to start seeing now. I am convinced that the coming quarters will continue to show that. Thank you very much for the initial part, for these initial comments, and let's start with the presentation. Please go back one slide. There. In the first full quarter of the company, we can see the evolution of production 74,000 barrels of oil equivalent daily, average daily production in February 25, and a robust EBITDA and cost reductions. I think that these are the take-home messages of the company associated with a robust cash position. Papa Terra resumed production. We started Atlanta and we started with Parque Desconches. We closed the Parque Desconches deal. Next slide, please. This shows a little bit of our portfolio. What we see is a robust increase in productions, as I have mentioned, in February of 25. We have capex efficiency. Directed to higher return assets, synergies being captured, deleveraging, which is starting to accelerate now, and a set of assets and projects with low regulatory exposure. In 2024, we had greater regulatory exposure, needing authorizations to conduct our operations, but since we have obtained almost all of the necessary authorizations for our investment program in 2025, Our exposure to regulatory approvals is much limited. At the same time, we have significant improvement in the amount of licenses we obtained in Rio Grande do Norte for our operations, and this is unlocking a lot of activities onshore of the Potiguar Basin. Here, the slide shows the governance structure and our management as announced recently. We are replacing Mastrangelo by Carlos Travassos. This was a scheduled replacement with a transition period. So in the next shareholders meeting on April 24th, Mastrangelos will leave and Carlos Travassos will take over. He's highly seasoned and he will take over as offshore COO. He has been working with us since January. So he's already very much integrated with the whole team and with our partners. Next. Here we have the highlights of the operation. We can see that the combined company Enauta Plus 3ER Last year, we started with the production of about 70,000 barrels produced daily. We had a gradual reduction given the operating efficiencies offshore until Q4, but we already see production resuming particularly in January and February. And now in March, we are working on the two FPSOs at Atlanta and Papa Terra so that we can connect two more wells. Two more in Atlanta, three more in Papa Terra. So that we can have a ramp up of production in the coming weeks and months for the company. So these are the main triggers for us to improve our earnings in Q125. Now we have the part of the presentation covering offshore activities. I will ask Mastrangelo to lead this part. Thank you, Desio. I would like to take this moment, since this is my last earnings conference call, to say that this was an agreed decision. I had already intended to return to the United States. I've been living there for more than 20 years. And what I can say is that I am very proud of the team that I was working with. And I'm still working with this team. I have a lot to deliver until the end of April. But with the merger between Enault and 3R, This is not a new Enalta and a new 3R. I can say that this is a first line team. The best that we had at Enalta and the best we had at 3R. We have the very, very best. I am very, very proud of this team. You probably saw the results in very little time in the last, in the previous earnings conference call. I participated with a number of goals to be delivered by the end of 2024. And of course the team delivered them all. They delivered everything that we promised. So Carlos Travassos will take over my role on April 24th. And he's very experienced. He started to work in the industry just like I did, just like Tessie did at the wellhead, at the shop floor. He knows what happens out there. It's not just an office work. He is somebody with a vast experience. I have more than 40 years in this industry. He has many, many years in this industry as well. He is somebody that I am very proud to be handing over to. And I am sure that he will continue the good work. He has been working with me side by side since the end of January. So this is not going to be a smooth handover. It's going to be a hands-on transition. I've been visiting all offshore assets with him a few days ago. I was in Perua with him. We were in Atlanta. I will be visiting Papaterra and we are talking with all of the employees. that are at the front line because our deliveries come from our people. And mobilizing everyone is what helps us deliver the results as we expect. I'm also a shareholder of the company. I believe in the company. And that is how we will continue to work together. All right. So let us now focus on the slide. As you can see, In our last earnings conference call, Q3-24, we said that we were working on structuring offshore, the growth of the offshore operation and the offshore portfolio. It was a conscious decision to start preparing particularly Papaterra to grow. We cannot think about Papaterra of the future if we didn't focus on Papaterra now. So we decided to work to structure our facilities to foster growth. We also said that we were going to resume production at year end. We did. For Atlanta, we transitioned the early production system to full development. And I will go back to Atlanta in a minute, but the results are showing now. In January, February, and that is what we expect to see from now onward in terms of growth. and I'll speak about the other fields one by one in a minute. All right, so let's start with Atlanta. I've said a lot about Atlanta, but this is an oil field. That I am always impressed with, with its ability to deliver results. Atlanta requires a production system that relies on pumping. So what did we do? We installed a robust system sized to work throughout the lifespan of the project without those intermediate shutdowns. We have a system that does not require water injection wells because it has a fantastic aquifer that maintains pressure. So compared with the development of a field that requires injection or injectors, they account for half of the drilling so that we can produce oil. Here we don't have the investments to re-inject water. This is a field that has produced more than 30 million barrels in a system that was an early production system. Any system that was there to give us more information about the field to remove risks of the full development and the results are very pleasing. So much so that our production curves, the response of the field remain exactly as we had predicted according to our models. So Atlanta field is performing really well. Primarily the reservoir, which is what matters, but also with a full development system, we are seeing a performance of the system as a whole, which is even exceeding our estimates because we had an average for the industry with an initial percentage of preparation. and adjustments to the plant and the field is performing even better than the usual. You probably saw the production curve in January and February and now in March we will have new wells coming online in a in a matter of a couple of weeks. So we've made all of the adjustments needed. So there was probably a slight reduction in production because we took the opportunity to run all of the necessary tests. And Atlanta field is keeping up, as you mentioned, we are the first independent company developing and executing on this project because we executed the project below the budget initially approved in 2022 because we were able to capture some synergies to reduce activities, mainly during installation. With that, we expect to have a final disbursement for the project in a couple of months that will be lower than what was originally approved in the budget. And that's very rare to happen in such a big project.

We now have a partner, West Sloan. They came in with a 20% stake and they're giving us full support so that we can move on with the next stages. I think we have another one. Well, very soon I'll talk about the new wells and then now we'll return to that subject. But this slide only shows the change in scale. Well, we started with a temporary system. We were in production for six and a half years. The oil storage capacity was 480,000 barrels, and this required frequent offloadings. I mean, 30,000 barrels a day would mean every five days. So in the case of a plant, that is a unit that, as I was saying, has to be ready to produce and treat water. And they already come with 150,000 barrels of water a day with treatment capacity. Therefore, we are ready to start growing the production in this field. Our schedule. I think in our last earnings release call I said that it should be concluded by the end of this quarter and we are now concluding at the end of this quarter as promised and as we speak people are already getting ready to connect the last line of the wells and then after that's two more weeks or maybe a little bit over that we will we started commissioning for the next one so we are at the final weeks but Now going forward, maybe by the end of this semester, we have two more wells. I can say therefore that it's part of our schedule. We are on time. And moreover, we don't need any additional equipment because we already have everything. We have the license to make the connection, to open the wells. I mean, to spread the well, we have connections and lines. The only thing that it's missing, I mean, it's just a regular installation sequence. Just to conclude that final stage of the well. So today production is quite stable. It's around 26,000. So if you look at the numbers, we're just waiting for the production of the next two wells. I mean, close to what they were producing before and further on. until the end of this half year, the production that will come from the two remaining wells. But everything is according to schedule in terms of our production startup. But after I talk about Papa Terra, I will talk about the tieback wells. I mean, two new wells. There will be the seventh and eighth wells. So next slide, please. One more. OK, now let's talk about Papa Terra. Papa Terra has to do with the conversation we had last time. And we had to build the basis for our growth. And this is what we did. We started production. And today, what are we doing Papa Terra? Well, we are getting ready. for getting prepared for the intro, three new wells. There were three wells. In the pipeline, we are now upgrading the heating system. And why is that necessary? Because this is heavy oil, so you need more heating capacity to support the need coming from these three additional wells. And likewise, we will have to do the upgrade in terms of stabilizing energy supply. So in a few more weeks, we will be able to start up three new wells in addition to the production we posted in February. From then on, as I said way back then, Papa Terra, is a field with two million barrels in place, I mean, in the reservoir. To extract the oil from the wells, which we call to increase the recovery factor, you have to start working to optimize water injection and other things. And this is what we are already doing. And that's why I wanted to talk about it right now. We already started the section of of four new wells, two in Atlanta and two in Papaterra. I'm talking about both because this is an integrated campaign. It's part of the synergy. We cannot do, we couldn't do that integrated campaign if it weren't for this combination of our portfolio in terms of the projects. And with that, we can optimize the contract can be longer for the drilling of the four wells, and we could still have the option of an additional one. And with that, We already have all of the necessary material and equipment. Everything is already in place. And I think during last year's call, I said that this would be in the first half of the year, but we were able to anticipate it. We did the final investment decision, the FID that occurred in February or last month. So what do I mean by that? It means that we already have a project with enough maturity Thank you very much. and the receival of the rig that is supposed to be in September this year, meaning that in a few more months we will be receiving the contracted rig as Lone Star from Constellation. Two contracts have been already signed. The agreements were signed right after the sanction or the approval by the board. We already signed all of the contracts and this is very important. Eighty percent of the total capex have been committed just to eliminate the risks from the project, risks of any kind of pricing changes. And what hasn't been signed is because it depends on the final approval or a decel that we will spend and at the age of the project. But this does not compromise the delivery of the project. So the project should be delivered on time. Referring to the four wells, two wells in Alcalá and two wells in Papa Terra. We intend to start with Papa Terra. I mean, the time between the end of drilling and the production, the ramp up of production, you know, it's in place because we are taking advantage of existing lines. But this is an integrated campaign. It goes from one to the other. Alternatively, I mean, the vessel that will lay the pipes is the same. So this is something that allows us to have this advantage or to have the synergy Pérez Pérez Pérez Pérez Once the Atlanta wells get into production, I mean, if you remove freight, which is a standard in the industry to calculate lifting cost, so this is our lifting cost for Atlanta, we are turning this activity highly profitable. And in the non-operated fields, and maybe I can refer to DC-10, we have Mana Tea. Our expectation is to resume production this month. The operating company, I mean, we are on the back seat, but the operating company said that by the end of the month, they will start operations. We already have the license to resume Manatee's operation. I mean, Parque das Conchas, BC 10, with Shell, the closing occurred the end of last year with 23% stake. What I can say is that this has many similarities to our DNA. Considering our expertise, I mean, both fields have heavy oil. They rely on, you know, deep water pumps or pumps at subsea. And yesterday we concluded another offload with Shell. We did a co-loading. together with Parque das Conchas. And what would that be? The shuttle tank, the shuttle tank that takes the oil, they took half of the space available in the vessel, and then they go to Atlanta and took the other half. Therefore, there was a lot of added value in the portfolio, including that field that is not operated by us. I think there's another slide. Now I'll turn the floor to listen to talk about the onshore fields. Well, the fourth quarter, we already see some of the results stemming from the actions we are putting in place. We see Production and Cost Improvement, CAPEX Improvement, and also improvements in our facilities. This year in February, as mentioned before, we reach record production Record on short production in the history of Brava in June and June 23 at Heikon-Kavu, we reached the highest level of production in the field. So since 2016, almost 10 years have gone by and now we were able to reach a record production that was successful work then by our team now speaking about Reconcavo here there was a a reduction in OPEX stemming from several actions of cost optimization we made important changes to our maintenance and production agreement we also re had reductions in the work over of the wells engineering production reservoir and rigs Therefore, we are selecting the wells and tasks to be executed to reduce OPEX. DESU also said that we are come to completion in some of our integrity campaigns and the major integrity costs are coming to an end. And therefore, this is reducing our lifting cost. There are still many things to be done. In order to continue in our path to reduce costs and still talking about production in that basin. This increase in production that we mentioned stemmed from the drilling campaign of Thank you very much. by the response that we manage with the extra heavy oil field as a result of the drilling campaign and also improvements in the water injection in that basin. Next slide. We continue to work according to the plan that we showed to you last quarter, improving capital utilization. We are optimizing the management process of water. And at the same time, we are moving on with the oil recovery projects to improve oil recovery. Now, in relation to improvements in CAPEX utilization, we reduced substantially the number of rigs. We went from 24 rigs last year to 13 rigs at the moment. We also made substantial reductions in the timing of our drilling campaigns, if you compare to the previous operator in the Seattle hub. Richard Kehrer Kovacs, Luiz Felipe Carvalho, Carlos Jose do Nascimento In the previous operator they will drill in 160 days and now we are doing it on average 38 days per well and also very shallow wells but 300 for 400 meters in depth I mean we used to do in 2.4 days now we are drilling in only 1.8 days and as of August we will Introduce a case and drilling system and this will allow us to reduce that timing to 1.2 days. So all of these operating improvements are very significant to the projects. In the past, We had several inefficiencies in terms of CAPEX use and that stemmed from environmental license. And thanks to a great alignment that we had with the regulatory agencies, now we went from 7.8 licenses a month as an average last year, 7.8 licenses to 17 licenses in the first two months of the year. I mean, licenses per month. So in the year 2025 and comparing to the first two months of last year, there were only two licenses per month. And now we had Thank you for joining us. I mean, the steam equipment already arrived in Brazil, some already installed, and some others will come by the end of the year. And obviously, this will Thank you very much. Thank you very much. Enhanced oil recovery. We are launching our first project of nitrogen injection and the project would be deployed in the Fazenda Belém, which is our oil field. The pilot product consists of injection of nitrogen and sulfactants in the wells in these fields. In the world, this is a very commonly used technology. I mean, when you have heavy oil, you work in four things. Heating, which is something that has been done by the previous operator, nitrogen, surfactants, and vertical or horizontal drilling of wells. We are working to drill horizontally and vertically as well. but we are using the best polymer technology in the world. It's a proven technology. We will run a pilot project. We would do the de-risking of the technology and then we can probably go into full development. and in the oil fields that are not so heavy, so heavy fields, we signed this month an MOU with a supplier to deploy polymer injection in the Salina and Campoamato fields. So we are working to start injecting polymers at the most in the first half of next year. I mean, the purpose of this technology, I mean, just like nitrogen, after the initial de-risking, we do the full development. It's very important that these two projects, nitrogen and polymers, will probably have a minimum use of capex, which also is very good for efficiency. So in summary, Reconcavo, we are making Hessmann's in cost, et cetera, we still have You know, a possibility to increase gas. We will focus on improving production and costs. We will continue with the drilling campaign, you know, steam injection, water and EOR project. And we also want to constantly focus on improving capex, improving the integrity and improving our overall operation.

Next slide. Thank you, Larry. Well, let us now start about the commercial results in the agenda looking forward. The charts on the slide show our consistent results amidst a period of growth, price volatility and operational volatility of the company. with part of the explanations made with the offshore environment. But I would like to highlight three main points regarding oil. This quarter we completed the offtake contracts for Atlanta partnership with Shell and Trafigura. The new contracts have a new trading format for Brava. Atlanta prices associated with the end markets, Southeast Asia and for low sulfur oil. So this allows us to share the benefits associated with cargo sharing as Michelangelo mentioned. Logistics optimization and improvement in the quality of the product delivered to the end market. These can bring us sharing of gains for Braz in addition to mitigating risks and accelerated the cash cycle of the company. We see the ability of storage at the new FPSO as a positive element, adding value to similar cargoes, meeting market needs, as he illustrated our share in Parque das Conchas and products with a final spec. That we produce at Potiguar Refinery and what other refineries in Brazil export. Second point, still on oil. There is a new trading format for purchasing oil in Potiguar. This was signed in February. This is a different partnership with Petro Reconcavo and other producers at the basin. Objectively, this leads to 20 to 30% increase in the discount in the purchase of oil compared to Brent. The counterpart is a fluctuation of margins in jet fuel and diesel S 500. The partnership also involves co-investment of the producers. Insured storage, improvement of transportation modes to optimize the growth of flow expected for 2026 at the basin. This is a new contract model. It's a 24 month partnership and we are very happy with the results so far. Third point. We end, we start Q2 25, aiming at the restructuring of our trading of our shared parquet des conches. The end of our partnership with Raizen for the selling of Bunker domestically and abroad and the negotiation of a new selling cycle for Papaterra Oil, now reflecting the investments made to improve logistics of the platform, which now has its full storage capacity in a new and a new offloading system. In natural gas, the company developed an area dedicated to natural gas. We improved our trading strategy with new sales contracts to Bahia Gais and Copper Gais and others, in addition to signing a longer contract, a three-year contract with Congais. And this is the NTS system of distribution. Gas contracts signed with Petro Reconcavo with differentiated conditions at Portugal in addition to gas procurement contracts. The focus, in our opinion, will be that in the mid-term the company will benefit from its gas fields, the integrated processing infrastructure, the geographic position of the portfolio, with increased production, a number of access points, improving margin and delivery to our main customers. Here One of the main points associated with our thesis and the business combination of 3R and Enalta leading to the creation of BRAVA Energia. In these five months since the creation of the company, several teams delivered many synergies identified in the action plan. We estimate that in terms of present value, by year end 2024, we obtained more than 30% of the total estimated synergies with the business combination. We expect to fully deliver these synergies captured along 2025. There will be a growing impact on the operating and financial results of the company. It is worth highlighting here that among the main activities During that period, we had the ownership restructuring of the holding. We finalized many of the subsidiaries. This is an ongoing process to be finished by mid 2025. Secondly, a broad liability management program with the prepayment of debt, issuance of debt, and some commitments that will allow us to reduce the average cost of debt, lengthening the maturity of the debt. We also delivered a deep reorg, reducing headcount, unifying systems of the company In addition to improving some activities that are ongoing, we did a broad review of the whole structure of guarantees and insurance, and operationally we reduced the redundancies in the offshore logistics, supply of inputs and provisions, as well as, as you mentioned, the decision to invest in new offshore wells with an integrated campaign for new wells in Atlanta and Papaterra. Now I turn the floor to Pizarro for the financial highlights. Thank you, Pedro. Good afternoon, everyone. We have now the financial highlights for Q4 and the full year 2024. For a comparative basis, we'll present non-audited pro-forma results, as if another merger with the company had happened in the beginning of the year. So let's start with the net revenues of the company. We achieved about 10 billion BRL in 2024, almost 2 billion BRL in Q4. In upstream, revenues were 1.3 billion BRL and in midstream 1.5 billion BRL, 860 million BRLs being intercompany eliminations. The biggest impacts on revenues are related to Papaterra project and Atlanta project, as mentioned by Dacio and Mastrangelo. These two fields have resumed production in the beginning of 2025. On the next slide, we have net revenues for upstream. Broken down by offshore and offshore. Shown stability of revenues from onshore fields, even with a reduction of Brent price during the year. In 2024, about 90% of upstream revenues came from oil, 10% from gas. Of the total, 46% came from Potiguar cluster, 10% in Bahia, totaling 56% of onshore fields, 25% in Atlanta, 13% Papaterra, 6% in Perua and other fields. Manetti also had a maintenance shutdown performed by Petrobras during most of the year. On the next slide, we have adjusted EBITDA for the company, given the operating restrictions at Papaterra, Manetti and the replacement of The FPSO at Atlanta, we had a declining trend in EBITDA throughout 2024, which followed production reduction. However, we have resumed production levels very close to Q1 2024, where we achieved $251 million in just one quarter. I'd like to highlight onshore EBITDA, which was quite substantial. We can see here the results. And if we analyze jointly onshore EBITDA midstream allocating 50% of corporate costs, we achieved about $34 per barrel for our onshore production. In other words, among the most well-positioned in Latin America. In offshore, We could see the real potential of cash generation in the habitat of our combined offshore portfolio starting in Q125. On the next slide, we present the lifting cost of the company. with and without chartering effects. Positive highlight for the onshore lifting cost at levels below $17 per barrel as a result of production increment of onshore fields, reduction of costs mainly in Bahia. I'd like to remind you that a good part of our logistics costs and onshore offloading pipelines is included in the lifting cost, which is not the case of our peers in Latin America. For offshore, with the new wells of Atlanta coming online and resumption of production at other wells at Papa Terra, lifting cost per barrel tends to be more efficient compared to the 2024 average. On the next slide, we have our CAPEX. A S S S S S S S S S S S S S S S S S S S and in the full development of Atlanta will not be repeated, at least not in the same order of magnitude in 2025. On the right, the pie chart considering the current working interest of Atlanta. Total capex in 2024 was about $870 million. In offshore, a total volume of $540 million. 70% of this $540 million linked to the Atlanta project. The replacement of the FPSO, as well as the whole drilling campaign, and Connection of the New Wells. For onshore plus midstream, total volume of investments was $333 million, 140 million of those in facilities, including investments in steam generators and integrity recovery. On the next slide, we have the company's capital structure. We ended 2024 with approximately $1 billion in our cash position and about $1.55 billion in financial net debt. If we add all the year notes of the company, deferred payments linked to the acquisitions, total net debt is $1.9 billion. And of note is that we have $402 million in receivables from Ensign, which will be paid during the chartering contract for FPSO Atlanta. Even with an EBITDA that was substantially impacted in Q3 and mainly in Q4, the company's leverage calculated in dollars was close to 2.8 times. I'd like to remind you that this is just looking at the last 12 months. On the next slide, we have cash flow and the position of oil byproducts. Operational cash flow was impacted by a reduction of production of onshore assets in addition to delinquency of NTE, which is the partner ETA Papaterra. and the owners for 526 million BRLs. The company remains with a very healthy cash position, as I mentioned, of $1 billion. As regards to byproducts, we have 170,000 NDF derivatives and many other contracts in the color format with a floor of $58. and we resumed our hedging strategy trying to protect the breakeven of the company mainly in the coming months. We currently have 1.7 million NDF contracts at $72 which protects the company from instabilities regarding the current level and these contracts are concentrated in the next six months. And I'll turn the floor back to Dessio for his final statements. I'll try to be brief because this is getting very long. But I would like to stress that we promised to deliver some operational events in Q4 24 and we did. We did deliver. We are getting prepared to deliver a production increase at Atlanta and at Papataha in the short term. And we We'll continue our goal to capture as many synergies as we can. We will continue to optimize our portfolio to concentrate on our most productive assets. We will continue this journey Onshore and generating cash per barrel both onshore and offshore. We are in a positive trajectory with Atlanta and we will continue In this relentless effort to create a culture of meritocracy, recognition and respect for earnings, which will make us deliver better and better results for our shareholders. With this, we are going to close the formal presentation. I'd like to say thank you for your patience. This was a very long presentation, but we are here to answer your questions. Thank you. We will now begin the question and answer session. If you want to ask a question, please click on the Q&A button at the bottom of your screen and type in your question. To ask questions live, click on the same icon and enter your name and company or click on raise your hand. Please wait as we collect the questions. First question from Mr. Rodrigo Almeida with Santander. Rodrigo, your microphone is enabled. Go ahead. Good afternoon to everyone. I think let's start with three questions. I'd like to speak about liability management. If I'm not mistaken, you have an opportunity to make some extraordinary amortizations. And when we look at our interactions with the fixed income investors, they are very interested. And they have been interested in your business case. So I'd like to know how you're interacting with this market. What are your plans now for the coming months regarding Extraordinary amortizations and possible issuances that can somehow bring benefits for you in terms of the cost of debt. And on that same topic, Desio, do you have any visibility regarding any news about the instant receivables? Second question is about Papatejo. And perhaps here more specifically in direct, In terms of the possibility of gas generation and electricity, we know that there is a high energy consumption need. So any costs related to that? Do we intend to operate the FPSO? I don't know exactly the details of your contract, but could there be any OPEX and cost upside at Papaterra? Any news about the price of oil from Papa Terra? And the third topic is more detail on Onshore. We spoke a little about the steam generation project. When should we have the full effect of the steam injection project? And what are your main focus of drilling at Potiguar? What are the main fields and wells you're focusing on along 2025? And what should be the lifting cost for onshore in the coming? What's the thing that these are my questions?