Petrobras. Nelson Silva Chief Strategy and Performance Officer April, 2017

Transcription

1 Petrobras Nelson Silva Chief Strategy and Performance Officer April, 2017

2 Agenda - Petrobras among the peers - Tracking the Business and Management Plan (BMP) - Zero Base Budget - Risk Management 2

3 Agenda - Petrobras among the peers - Tracking the Business and Management Plan (BMP) - Zero Base Budget - Risk Management 3

4 In 2016, the production target was achieved 2,65 2,65 2,55 2,69 Oil and Gas Production (Million boe/d) 2,83 2,90 2,89 2,84 2,88 2,81 2,86 2,94 10% increase in total production between 1Q16 and 4Q16 LULA (FPSO CIDADE MARICÁ) LULA (FPSO CIDADE SAQUAREMA) LAPA (FPSO CIDADE CARAGUATATUBA) Decline new Units + ramp-up as estimated - PESA Divestment Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Onshore Post-Salt Pre-Salt International 4

5 Which contributed to better results among the peers Adjusted EBITDA (US$ Billion) EBITDA Margin (%) 40, ,5 21,6 29,5 26,7 34,1 24,1 19,4 17,4 17,1 25,4 20, Petrobras Shell Exxon Chevron BP Total Petrobras Shell Exxon Chevron BP Total Source: Evaluate Energy and companies reports 5

6 Which contributed to better results among the peers Cash Flow From Operating Activities (US$ Billion) Free Cash Flow (US$ Billion) 12, ,5 3,3 3,9 6,8 0, ,2-7,3-5,9-5,0-1,6-10,3 Petrobras Shell Exxon Chevron BP Total Petrobras Shell Exxon Chevron BP Total Source: Evaluate Energy and companies reports 6

7 Following the same trend of CAPEX reduction and allocation Capex (US$ Billion) CAPEX E&P / Total CAPEX (%) 29,7 26,5 26,4 24,9 23,1 21,8 20,1 18,5 18,1 15,9 16,6 15,3 Petrobras Shell Exxon Chevron BP Total Petrobras Shell Exxon Chevron BP Source: Evaluate Energy and companies reports 7

8 Others Others Russians Russians Chinese Chinese Majors Majors In 2016, Petrobras leverage started converging towards industry levels Net Debt / EBITDA* Net Debt / EBITDA* Petrobras Petrobras Shell Shell ExxonMobil ExxonMobil Chevron Chevron BP BP CNOOC CNOOC PetroChina PetroChina Sinopec 0,3 Sinopec Gazprom N.A Gazprom N.A Lukoil Lukoil Rosneft Rosneft Ecopetrol Ecopetrol Statoil Statoil 0,3 3,5 3,5 2,5 2,5 1,1 1,1 2,2 2,2 2,0 2,0 1,5 1,5 1,4 1,4 0,7 0,7 2,7 2,7 2,2 2,2 1,4 1,4 Source: Evaluate Energy *Adjusted EBITDA 8

9 Agenda - Petrobras among the peers - Tracking the Business and Management Plan (BMP) - Zero Base Budget - Risk Management 9

10 10

11 Safety as a priority is reflected in the improvement in TRIFR SAFETY Total Recordable Injury Frequency Rate* -30% -24% * TRIFR = Number of reportable injuries per million man-hours 11

12 Pricing Policy is key The new Pricing Policy resulted in the following adjustments: Applying a margin over parity prices and tracking market-share: % Diesel Gasoline 1,20 1,00 0,80 0,60 0, Diesel Imports by third-parties (million m³/month) , ,00 out/16 nov/16 dez/ ,20 1,00 Gasoline Imports by third-parties (million m³/month) 0,80 10/15/ /9/16 12/6/16 1/6/17 1/27/17 2/25/17 3/31/17 0,60 0,40 0,20 0, out/16 nov/16 dez/16 12

13 As well as Capex allocation and Partnerships and Divestments Program US$ Billion CAPEX BMP PARTNERSHIPS AND DIVESTMENTS % Other RNG E&P +8% 2017 track record: US$ 4.7 Billion cashed in Original Current Original Current 2017 CAPEX US$ 19.8 Billion Partnerships and Divestment Program reached US$ 13.6 Billion in

14 Jointly with costs reduction Sales, General and Administrative Expenses R$ Billion Workforce Manageable Operating Costs R$ Billion % % -35% % ,470 71,152-3% 68, % 6.0 4Q15 3Q16 4Q Q15 3Q16 4Q

15 And competitive lifting costs 14.1 Lifting Cost* (US$/boe) -27% -11% Lifting Cost in Pre-Salt < 8.0 US$/boe We turned the pre-salt highly competitive *Brazil + International 15

16 From higher productivity in the upstream operations in % less helicopters 26% less support vessels 24% less drilling rigs Well construction time in Pre-salt (days) Over 1 million Passengers transported Over 3 million tons of cargo transported %

17 Converging to the financial target of the Business Plan Reduction in LEVERAGE Net Debt/EBITDA* -31% -10% Q Q16 TO 2.5 by 2018 * LTM Adjusted EBITDA 17

18 Agenda - Petrobras among the majors - Tracking the Business and Management Plan (BMP) - Zero Base Budget (OBZ) - Risk Management 18

19 Fundamental questions of Zero Base Budget (OBZ) focused in its central function? Is each area Low priority costs Is there any activity that has been done and that does not add value to the client? Is it possible to do what has been done today in a more efficient way? Is there a simpler way to work with no quality loss? Medium priority costs High priority costs Threshold (The most important) COST TOWER 19

20 OBZ at Petrobras 1,089 Action plans 2,355 Implementation milestones Submarine and well operations Efficiency of maritime and air fleet Main work areas Pipelines and terminals operations Productivity of teams in operating facilities Overhead costs Procurement models Information technology and communication Shared services (lease, building maintenance, transportation) 20

21 Agenda - Petrobras among the majors - Tracking the Business and Management Plan (BMP) - Zero Base Budget - Risk Management 21

22 Strategic Plan main risks* Regulatory risks Risks and mitigating activities managed by accountable people Material changes to market conditions Divestments and partnerships below plan Judicial disputes *These risks are not exhaustive 22

23 Thank you Nelson Silva Chief Strategy and Performance Officer