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- **Record Production Growth**: 2.47 million b/d in July (380,000 b/d YoY increase), driven by 48 wells connected in first half of 2025.
- **Resilient Financials**: $10.2 billion EBITDA (ex. one-off) at $67/bbl Brent, matching Q1 performance at higher prices.
- **CapEx Execution**: $18.5 billion 2025 target maintained, with 207,000 b/d added from chartered platforms.
- **Strategic Initiatives**: LNG direct sales, Tupi field expansion to 1 million b/d, and ExxonMobil partnership in Amazonas blocks.

**【CEO Opening Remarks】**
- **Production Milestones**: Q2 2025 oil production reached 2.3 million barrels/day (up 5% QoQ, 8% YoY), with July production at 2.47 million barrels/day (380,000 b/d increase vs. Q4 2024). Key platforms include Duque de Caxias (+180,000 b/d), Alexandre de Gusmão (180,000 b/d capacity), and P-78 (180,000 b/d capacity). 
- **CapEx Execution**: Q4 2024 CapEx increase offset earlier cuts, driving production growth. 48 wells connected in first half of 2025 (vs. 31 in 2024), with 225,000 b/d from 5 pre-salt wells.
- **Cost Management**: Despite $67/bbl Brent (10% YoY decline), production growth offset price impact. Q2 2025 EBITDA (ex. one-off items) $10.2 billion, matching Q1 at lower prices.

**【CFO Financial Commentary】**
- **Financial Results**: Q2 net income (ex. one-off) $4.1 billion, EBITDA $10.2 billion. Operating cash flow $7.5 billion (down vs. Q1 due to tax credits, variable remuneration, and higher export volumes).
- **Debt Management**: Total debt $65 billion (60% from productive leases). Successful BRL 3 billion debenture issuance in Q2. 2025 CapEx guidance of $18.5 billion maintained, with $4.4 billion invested in Q2.
- **Dividend Policy**: Q2 free cash flow distribution of BRL 8.7 billion (BRL 0.67/share), paid in two installments. Dividends aligned with oil price scenarios.

**【Q&A Highlights】**
- **Gas Distribution Strategy**: Exploring LNG direct sales to large customers. No immediate LNG import projects, but open to profitable opportunities.
- **Production Growth Risks**: Scheduled platform shutdowns may limit growth, but 2025 target at upper end of guidance. Tupi field aims for 1 million b/d by end-2025.
- **2026 CapEx Flexibility**: Projects will be re-evaluated for profitability at $67/bbl Brent. BOT contracting model reduced platform costs by 15-20%. 
- **Partnerships**: ExxonMobil partnership in Amazonas blocks leverages Guyana/Suriname expertise. 30+ partners in pre-salt exploration.
- **Ethanol & Renewables**: Exploring biofuels and thermal power plants if profitable. No immediate Braskem investments.

Petróleo Brasileiro S.A. - Petrobras (PBR) Q2 2025 Earnings Call Transcript

- **Q1 2025 Strong Performance**: Despite $65/bbl oil prices, net income reached $6 billion, driven by operational efficiency and FX gains.
- **Cost-Reduction Focus**: Simplifying FPSO projects (e.g., Albacora topside weight cut by 42%), renegotiating contracts, and prioritizing short-term cash flow projects.
- **LNG Expansion**: BOAVENTURA complex to process 21 million m³/day of natural gas, supporting LNG exports and free market demand.
- **Energy Transition Leadership**: First biofuel-blended bunker in Asia, 50,000 hectares reforestation deal to capture 15 million tons of CO2.
- **Dividend Sustainability**: Maintains 45% free cash flow payout, with $11.7 billion dividends approved for Q1 2025.


**【CEO Opening Remarks】**
- **Challenging Oil Price Environment**: CEO Magda Chambriard highlighted the significant drop in oil prices from $84/bbl in Q1 2024 to $75/bbl in Q1 2025, with current prices at $65/bbl. She emphasized the need for austerity, cost reduction, and capital discipline.
- **Exploration Success**: Petrobras added reserves through discoveries in the pre-salt layer (Aram block) and Colombia. Production increased by 5.4% QoQ, driven by new FPSO units in Buzios and Alexandre de Gusmao.
- **Diesel Expansion**: Revamped RNEST refinery now processes 130,000 bbl/day, doubling capacity. S10 diesel production focuses on high-margin, low-emission products.
- **Energy Transition**: Launched Brazil's first biofuel-blended bunker in Asia, with 24% renewable content. Signed 50,000 hectares reforestation deal to capture 15 million tons of CO2.

**【CFO Financial Summary】**
- **Q1 2025 Results**: Adjusted EBITDA of $10.7 billion (+8% QoQ), net income of $6 billion (including FX gains). Operational cash flow $8.5 billion, up 4% QoQ.
- **Capital Expenditure**: Q1 CapEx $4.1 billion (-29% QoQ), lower due to delayed payments from Q4 2024. Full-year guidance remains $18.5 billion, with focus on pre-salt and LNG projects.
- **Debt Management**: Gross debt at $65 billion, within $75 billion ceiling. Dividends of BRL11.7 billion approved, maintaining 45% free cash flow payout policy.
- **Resilience Testing**: E&P projects breakeven at $28/bbl, with 70% of portfolio resilient to $45/bbl. Free cash flow sensitivity to price drops mitigated by operational efficiency.

**【Q&A Highlights】**
- **Cost Reduction Initiatives**: Simplifying FPSO topsides (e.g., Albacora reduced from 60,000 to 35,000 tons), renegotiating project scopes, and reprioritizing short-term cash flow projects.
- **LNG Strategy**: BOAVENTURA complex to process 21 million m³/day of natural gas, supporting LNG exports. Investing in infrastructure to capture ceramics industry demand in free market.
- **Dividend Policy**: Maintains 45% free cash flow dividend payout, with flexibility to issue debt if needed. No plans for extraordinary dividends despite $65 billion tax payments.
- **Equatorial Margin Exploration**: $3 billion allocated for 15 wells over 5 years. First well in Oiapoque expected to drill in 2025, with production potential in 4-5 years.
- **Shipyard Simplification**: Engaging global suppliers to reduce FPSO costs below $3.5 billion/unit, leveraging Brazil's shipbuilding capacity.


Petroleo Brasileiro S.A. - Petrobras (PBR) Q1 2025 Earnings Conference Call Transcript

- **Record Cash Flow & Dividends**: Generated BRL 204 billion in operating cash flow and paid BRL 102.6 billion in dividends, despite Q4 accounting loss of BRL 17 billion.
- **Buzios Field Expansion**: Advanced $16.6 billion in CapEx to accelerate Buzios production, targeting 2 million bpd by 2030. Q4 2024 production reached 800,000 bpd.
- **Operational Efficiency**: Reduced operating expenses, achieved record S10 diesel production, and expanded fleet for GLP distribution.
- **Environmental Commitment**: Invested BRL 1 billion in social/environmental programs and advanced emergency response infrastructure for equatorial margin drilling.
- **2025 Growth**: Projected 100,000 bpd production increase, driven by new FPSOs and refinery upgrades, with normalized maintenance schedules.

**【CEO Summary Section】**
- **2024 Financial Highlights**: Generated BRL 204 billion in operating cash flow, reduced debt to BRL 23.2 billion (lowest since 2008), and paid BRL 102.6 billion in dividends. Despite a Q4 net loss of BRL 17 billion due to exchange rate impacts, the company emphasizes financial health and operational strength.
- **Strategic Investments**: Advanced Buzios field development with FPSO Almirante Tamandare (225,000 bpd capacity) and FPSO Maria Quiteria, increasing 2024 CapEx to $16.6 billion (31% YoY growth). Buzios production reached 800,000 bpd in Q4, targeting 2 million bpd by 2030.
- **Operational Milestones**: Started production at FPSO Sepetiba in the Mero field, replenished 1.2 billion barrels of reserves, and achieved record S10 diesel production. Expanded fleet with 12 new vessels for GLP distribution.

**【CFO Financial Commentary】**
- **Financial Performance**: Adjusted EBITDA of $40.4 billion and net income of $7.5 billion for 2024. Q4 loss of BRL 17 billion attributed to exchange rate variation (BRL 59 billion impact) and lower Brent/diesel crack prices. Excluding these factors, net income would have been $19.4 billion.
- **Debt Management**: Financial debt reduced to $23.2 billion, with focus on extending maturity and reducing spreads. 2025-2029 CapEx forecast remains unchanged, with 10% flexibility for project uncertainties.
- **Cash Flow Allocation**: Prioritized dividends (BRL 102.6 billion), tax payments (BRL 270 billion), and debt reduction, maintaining strong liquidity despite external market challenges.

**【Q&A Key Highlights】**
- **CapEx Advancements**: Accelerated Buzios-related investments ($2.2 billion NPV gain) and FPSO Maria Quiteria startup in Q4 2024. No additional projects beyond 2025-2029 strategic plan, but focus on mitigating delays and advancing production timelines.
- **Production Outlook**: 100,000 bpd production increase in 2025, driven by new FPSOs and refinery upgrades. Maintenance shutdowns in 2024 (e.g., Ibama licensing delays) are expected to normalize in 2025.
- **Environmental & Governance**: Committed to sustainable development, with BRL 1 billion in social/environmental investments. Advanced emergency response infrastructure for equatorial margin drilling, including BRL 150 million for Amapá basin safeguards.
- **Equatorial Margin Exploration**: Pioneering well in Amapá basin expected to drill in 2025, with 6 blocks and 8 wells planned. Petrobras emphasizes geological potential and environmental safeguards (e.g., fauna rehabilitation centers, state-of-the-art drilling equipment).


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