The evolution of Petrobras in an industry in transformation. Nelson Silva Chief Strategy and Performance Officer

Transcription

1 The evolution of Petrobras in an industry in transformation Nelson Silva Chief Strategy and Performance Officer

2 OUR TOP METRICS Safety TOTAL RECORDABLE INJURY FREQUENCY RATE (TRI)* Financial NET DEBT / ADJUSTED EBITDA *Number of recordable injuries per million man-hours 2

3 We have reduced the TRIFR and prevented hundreds of injuries Total recordable injuries per million man-hours (TRIFR) From 2015 to October 2017, TRIFR dropped from 2.15 to 1.09 injuries per million man-hours, preventing more than one thousand injuries! 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3

4 Falling debt and improving debt profile Average debt term (years) and Average rate (% p.a.) , ,46 7, , , Q16 4Q16 1Q17 2Q17 3Q17 4Q , Q16 4Q16 1Q17 2Q17 3Q17 Sum of amortizations in 2018, 2019 and 2020 (US$ billion) 48.1 Term Average rate 27.5 Gross debt Net debt Position on 12/31/2014 Position on 11/30/2017* Note: prepayment of US$ 2.8 billion to China Development Bank not included (due in 2019) 4

5 NEW STRATEGIES LOW CARBON ECONOMY DIGITAL TRANSFORMATION FINANCIAL AND RISK MANAGEMENT 5

6 Preparing the company for a future based on a low carbon economy Reducing our carbon footprint Investing and promoting new technologies to reduce GHG Developing high value renewable energy businesses 6

7 Capturing opportunities generated by the digital transformation Value generation through the implementation of consolidated and emerging digital solutions, and new ways of collaboration and innovation: Automation Big data Cloud computing Artificial intelligence High performance computing IoT 7

8 Optimizing the company s financial and risk management Improvement on cash management, increasing predictability and optimizing size and allocation Reduction of the risk associated to the company s cash flow 8

9 Focus on the most profitable projects Capex Annual Capex 74.5 US$ billion 18% 1% Upstream Refining and Natural Gas Other segments % Note: considers impacts of divestments 9

10 Million boe/d Leading to a robust production growth OIL + GAS INTERNATIONAL NATURAL GAS BRAZIL OIL BRAZIL Note: considers impacts of divestments 10

11 Months to reach plateau While improving our operational performance 25 FPSO ramp-up Ilhabela 11.0 Lifting costs (US$/bbl) Angra dos Reis São Paulo Paraty Itaguaí Mangaratiba Saquarema Maricá 9M ** Refining costs (US$/bbl) First oil 9M ** **Average of BMP 11

12 2016 full-cycle Brent Breakeven, US$/bbl Resulting in pre-salt breakeven being among the lowest $120 $100. Canada oil sands Venezuela $80 $60 $40 $20 $0 Middle East Algeria China Russia Brazil NA Tight Oil Kazakhstan West US Africa Norway GoM and UK New crude oil production, thousand b/d * Breakeven price range for a typical Pre-salt project Sources: IHS Markit 2016, *Petrobras 12

13 The transformation of the energy industry Photo on Visualhunt.com 13

14 The future of the industry will be impacted by multiple disruptions Linear World Non-Linear World Mobility Revolution ICE efficiency Ride sharing EV adoption & autonomous cars Leapfrogging ICE Regulation Consumption Growth Power Super Charged GDP growth Conventional supply PetChem product innovation Unconventional supply Developing market indigenous consumption Renewables supply Energy intensity New sources of supply / Nuclear fission Digital / technology Source: Accenture Strategy Energy, ICE: Internal Combustion Engine 14

15 Going electric Intended plans for ICE phase-out Plans by automakers: GBR FRA DEU GM: plans to offer 20 electric models by Ford: plans to offer 13 electric models by Volvo: plans to stop manufacturing combustion engineonly vehicles by 2019 NLD NOR IND VW Group: plans to invest USD 84 billion to manufacture batteries and offer 300 electric models by 2030 Tesla: the first Model 3 (350 km range) started to be delivered by mid-2017, at a price point of US$ 35,000 ICE: Internal Combustion Engine Source:Bloomberg New Energy Finance, World Oil Outlook, IHS-Markit, Internacional Energy Agency, ExxonMobil, GM, Volvo, Ford, VW and Tesla 15

16 Renewable energy costs are falling exponentially US$/MWh U.S. Energy Cost (US$/MWh)* Brazil Dec./2017 auctions PV solar park Natural gas: 66 US$/MWh Solar: 45 US$/MWh Wind: 30 US$/MWh Onshore Wind Source: Lazard and CEE, *unsubsidized energy cost 16

17 Some burning questions What is the future of our industry? How fast will we be able to adapt to disruptive changes? What is the actual value of our assets? Are we ready to reposition ourselves in new businesses and markets? Photo on Visualhunt.com 17

18 Our challenge is to discover NOW what will matter TOMORROW and transform our industry into a FUTURE that is unfolding TODAY Photo on Visualhunt.com 18

19 Thank you