6-K 1 pbraitr1q21rs_6k.htm 6-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of May, 2021

 

Commission File Number 1-15106

 

 

PETRÓLEO BRASILEIRO S.A. – PETROBRAS

(Exact name of registrant as specified in its charter)

 

Brazilian Petroleum Corporation – PETROBRAS

(Translation of Registrant's name into English)

 

Avenida República do Chile, 65 
20031-912 – Rio de Janeiro, RJ
Federative Republic of Brazil

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

 
 

 

 

 

 

Quarterly Information- ITR

 

At March 31, 2021 and report on review of Quarterly Information

 

 

 

 

 

 

  

 

 

 
 

INDEX

PETROBRAS

 

 

Parent Company Interim Accounting Information / Statement of Financial Position - Assets 3
Parent Company Interim Accounting Information / Statement of Financial Position - Liabilities 4
Parent Company Interim Accounting Information / Statement of Income 5
Parent Company Interim Accounting Information / Statement of Comprehensive Income 6
Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021 7
Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2020 to 03/31/2020 8
Parent Company Interim Accounting Information / Statement of Cash Flows – Indirect Method 9
Parent Company Interim Accounting Information / Statement of Added Value 10
Consolidated Interim Accounting Information / Statement of Financial Position - Assets 11
Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities 12
Consolidated Interim Accounting Information / Statement of Income 13
Consolidated Interim Accounting Information / Statement of Comprehensive Income 14
Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021 15
Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2020 to 03/31/2020 16
Consolidated Interim Accounting Information / Statement of Cash Flows – Indirect Method 17
Consolidated Interim Accounting Information / Statement of Added Value 18
1.   Basis of preparation 19
2.   Summary of significant accounting policies 19
3.   Cash and cash equivalents and Marketable securities 19
4.   Sales revenues 20
5.   Costs and expenses by nature 21
6.   Other income and expenses 21
7.   Net finance income (expense) 22
8.   Net  income by operating segment 22
9.   Trade and other receivables 23
10.    Inventories 24
11.    Taxes 25
12   Short-term and other benefits 28
13   Employee benefits (Post-Employment) 29
14   Provisions for legal proceedings 32
15   Provision for decommissioning costs 35
16   The “Lava Jato (Car Wash) Operation” and its effects on the Company 35
17   Property, plant and equipment 37
18   Intangible assets 38
19   Impairment 39
20   Exploration and evaluation of oil and gas reserves 39
21   Collateral for crude oil exploration concession agreements 40
22   Investments 40
23   Disposal of assets and other changes in organizational structure 41
24   Assets by operating segment 44
25   Finance debt 45
26   Lease liabilities 47
27   Equity 48
28   Fair value of financial assets and liabilities 49
29   Risk management 49
30   Related-party transactions 54
31   Supplemental information on statement of cash flows 57
32   Subsequent events 57
33   Correlation between the explanatory notes of December 31, 2020 and the ones of March 31, 2021 60
STATEMENT OF DIRECTORS ON INTERIM ACCOUNTING INFORMATION AND REPORT ON THE REVIEW OF QUARTERLY INFORMATION 61
Independent Auditors' Report

62

2 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Financial Position - Assets

(R$ Thousand)

   

 

Account Code Account Description 03.31.2021 12.31.2020
1 Total Assets 1,219,867,000 1,178,600,000
1.01 Current Assets 121,557,000 100,863,000
1.01.01 Cash and Cash Equivalents 4,321,000 5,180,000
1.01.02 Marketable Securities 3,197,000 2,963,000
1.01.03 Trade and Other Receivables 52,846,000 44,321,000
1.01.04 Inventories 31,721,000 25,452,000
1.01.06 Recoverable Taxes 7,105,000 11,792,000
1.01.06.01 Current Recoverable Taxes 7,105,000 11,792,000
1.01.06.01.01 Current Income Tax and Social Contribution 1,604,000 1,566,000
1.01.06.01.02 Other Recoverable Taxes 5,501,000 10,226,000
1.01.08 Other Current Assets 22,367,000 11,155,000
1.01.08.01 Non-Current Assets Held for Sale 11,733,000 3,582,000
1.01.08.03 Others 10,634,000 7,573,000
1.01.08.03.03 Others 10,634,000 7,573,000
1.02 Non-Current Assets 1,098,310,000 1,077,737,000
1.02.01 Long-Term Receivables 97,518,000 88,516,000
1.02.01.03 Marketable Securities Measured at Amortized Cost 230,000 226,000
1.02.01.04 Trade and Other Receivables 12,322,000 11,369,000
1.02.01.07 Deferred Taxes 43,654,000 36,351,000
1.02.01.07.01 Deferred Income Tax and Social Contribution 27,598,000 20,518,000
1.02.01.07.02 Deferred Taxes and Contributions 16,056,000 15,833,000
1.02.01.10 Other Non-Current Assets 41,312,000 40,570,000
1.02.01.10.04 Judicial Deposits 38,515,000 37,487,000
1.02.01.10.05 Other Long-Term Assets 2,797,000 3,083,000
1.02.02 Investments 268,669,000 241,875,000
1.02.03 Property, Plant and Equipment 654,942,000 670,088,000
1.02.04 Intangible Assets 77,181,000 77,258,000

 

 

3 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Financial Position - Liabilities

(R$ Thousand)

   

 

Account Code Account Description 03.31.2021 12.31.2020
2 Total Liabilities 1,219,867,000 1,178,600,000
2.01 Current Liabilities 232,164,000 227,895,000
2.01.01 Payroll, Profit Sharing and Related Charges 8,922,000 9,418,000
2.01.02 Trade Payables 34,686,000 75,543,000
2.01.03 Taxes Obligations 226,000 225,000
2.01.03.01 Federal Taxes Obligations 226,000 225,000
2.01.03.01.01 Income Tax and Social Contribution Payable 226,000 225,000
2.01.04 Current Debt and Finance Lease Obligations 155,852,000 107,666,000
2.01.04.01 Current Debt 124,301,000 76,783,000
2.01.04.03 Lease Obligations 31,551,000 30,883,000
2.01.05 Other Liabilities 24,835,000 23,625,000
2.01.05.02 Others 24,835,000 23,625,000
2.01.05.02.01 Dividends and Interest on Capital Payable 4,433,000 4,411,000
2.01.05.02.04 Taxes and Contributions 14,252,000 13,270,000
2.01.05.02.06 Other liabilities 6,150,000 5,944,000
2.01.06 Provisions 3,679,000 8,049,000
2.01.06.02 Other Provisions 3,679,000 8,049,000
2.01.06.02.04 Pension and Medical Benefits 3,679,000 8,049,000
2.01.07 Liabilities Associated with Non-Current Assets Held for Sale and Discontinued 3,964,000 3,369,000
2.01.07.01 Liabilities Associated with Non-Current Assets Held for Sale 3,964,000 3,369,000
2.02 Non-Current Liabilities 674,308,000 642,295,000
2.02.01 Non-Current Debt and Finance Lease Obligations 476,130,000 447,895,000
2.02.01.01 Non-Current Debt 381,118,000 357,491,000
2.02.01.03 Lease Obligations 95,012,000 90,404,000
2.02.02 Other Liabilities 1,761,000 1,810,000
2.02.02.02 Others 1,761,000 1,810,000
2.02.02.02.03 Income Tax and Social Contribution 1,761,000 1,810,000
2.02.04 Provisions 196,417,000 192,590,000
2.02.04.01 Provisions for Tax Social Security, Labor and Civil Lawsuits 9,559,000 10,301,000
2.02.04.02 Other Provisions 186,858,000 182,289,000
2.02.04.02.04 Pension and Medical Benefits 74,989,000 74,209,000
2.02.04.02.05 Provision for Decommissioning Costs 96,199,000 97,194,000
2.02.04.02.07 Other Provisions 15,670,000 10,886,000
2.03 Shareholders' Equity 313,395,000 308,410,000
2.03.01 Share Capital 205,432,000 205,432,000
2.03.02 Capital Reserves (1,051,000) 2,665,000
2.03.04 Profit Reserves 128,463,000 127,296,000
2.03.08 Other Comprehensive Income (19,449,000) (26,983,000)

 

 

4 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Income

(R$ thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
3.01 Sales Revenues 88,816,000 68,109,000
3.02 Cost of Sales (46,030,000) (42,082,000)
3.03 Gross Profit 42,786,000 26,027,000
3.04 Operating Expenses / Income (7,852,000) (56,805,000)
3.04.01 Selling Expenses (5,415,000) (5,137,000)
3.04.02 General and Administrative Expenses (1,220,000) (1,430,000)
3.04.05 Other Operating Expenses (4,112,000) (56,945,000)
3.04.05.01 Other Taxes (468,000) (358,000)
3.04.05.02 Research and Development Expenses (639,000) (422,000)
3.04.05.03 Exploration Costs (1,193,000) (465,000)
3.04.05.05 Other Operating Expenses, Net (1,123,000) (74,000)
3.04.05.07 Impairment of Assets Charges / Reversals (689,000) (55,626,000)
3.04.06 Share of Profit / Gains on Interest in Equity-Accounted Investments 2,895,000 6,707,000
3.05 Net Income Before Financial Results and Income Taxes 34,934,000 (30,778,000)
3.06 Finance Income (Expenses), Net (32,476,000) (44,082,000)
3.06.01 Finance Income 467,000 1,014,000
3.06.01.01 Finance Income 467,000 1,014,000
3.06.02 Finance Expenses (32,943,000) (45,096,000)
3.06.02.01 Finance Expenses (7,655,000) (8,678,000)
3.06.02.02 Foreign Exchange and Inflation Indexation Charges, Net (25,288,000) (36,418,000)
3.07 Net Income Before Income Taxes 2,458,000 (74,860,000)
3.08 Income Tax and Social Contribution (1,291,000) 26,337,000
3.08.01 Current 120,000
3.08.02 Deferred (1,291,000) 26,217,000
3.09 Net Income from Continuing Operations 1,167,000 (48,523,000)
3.11 Income / (Loss) for the Period 1,167,000 (48,523,000)
3.99.01.01 Ordinary Shares (4)
3.99.01.02 Preferred Shares (4)
3.99.01 Income per Share      
3.99.02.01 Ordinary Shares  0.09  (3.72)
3.99.02.02 Preferred Shares  0.09  (3.72)
3.99.02 Diluted Income per Share    

 

 

5 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Comprehensive Income

(R$ thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
4.01 Net Income for the Period 1,167,000 (48,523,000)
4.02 Other Comprehensive Income 7,534,000 (15,189,000)
4.02.03 Cumulative Translation Adjustments 24,285,000 49,419,000
4.02.04 Unrealized Gains/(Losses) on securities measured at fair value through other comprehensive income (10,000)
4.02.07 Unrealized Gains / (Losses) on Cash Flow Hedge  - Recognized in Shareholders' Equity (30,521,000) (100,044,000)
4.02.08 Unrealized Gains / (Losses) on Cash Flow Hedge  - Reclassified to Profit and Loss 5,903,000 6,096,000
4.02.09 Deferred Income Tax and Social Contribution on Cash Flow Hedge 8,370,000 31,942,000
4.02.10 Share of Other Comprehensive Income of Equity-Accounted Investments (503,000) (2,592,000)
4.03 Total Comprehensive Income for the Period 8,701,000 (63,712,000)
6 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021

(R$ thousand)

   

 

Account Code Account Description Share Capital Capital Reserves, Granted Options and Treasury Shares Profit Reserves Retained Earnings / Accumulated Losses Other Comprehensive Income Shareholders' Equity
5.01 Balance at the Beginning of the Period 205,432,000 2,665,000 127,296,000 (26,983,000) 308,410,000
5.04 Capital Transactions with Owners (3,716,000) (3,716,000)
5.04.08 Change in Interest in Subsidiaries (3,716,000) (3,716,000)
5.05 Total of Comprehensive Income 1,167,000 7,534,000 8,701,000
5.05.01 Net Income for the Period 1,167,000 1,167,000
5.05.02 Other Comprehensive Income 7,534,000 7,534,000
5.07 Balance at the End of the Period 205,432,000 (1,051,000) 127,296,000 1,167,000 (19,449,000) 313,395,000
7 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2020 to 03/31/2020

(R$ thousand)

   

 

Account Code Account Description Share Capital Capital Reserves, Granted Options and Treasury Shares Profit Reserves Retained Earnings / Accumulated Losses Other Comprehensive Income Shareholders' Equity
5.01 Balance at the Beginning of the Period 205,432,000 2,665,000 124,613,000 (37,169,000) 295,541,000
5.04 Capital Transactions with Owners (2,000) 2,000
5.04.09 Realization of the Deemed Cost (2,000) 2,000
5.05 Total of Comprehensive Income (48,523,000) (15,189,000) (63,712,000)
5.05.01 Net Income for the Period (48,523,000) (48,523,000)
5.05.02 Other Comprehensive Income (15,189,000) (15,189,000)
5.07 Balance at the End of the Period 205,432,000 2,665,000 124,613,000 (48,525,000) (52,356,000) 231,829,000

b

8 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Cash Flows – Indirect Method

(R$ Thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
6.01 Net cash provided by operating activities 28,067,000 11,024,000
6.01.01 Cash provided by operating activities 50,986,000 37,215,000
6.01.01.01 Net Income (loss) for the period 1,167,000 (48,523,000)
6.01.01.02 Pension and medical benefits (actuarial expense) 1,661,000 2,060,000
6.01.01.03 Results in equity-accounted investments (2,895,000) (6,707,000)
6.01.01.04 Depreciation, depletion and amortization 16,905,000 17,895,000
6.01.01.05 Impairment of assets (reversal) 689,000 55,626,000
6.01.01.06 Exploratory expenditures write-offs 740,000 117,000
6.01.01.08 Foreign exchange, indexation and finance charges 31,680,000 43,502,000
6.01.01.09 Deferred income taxes, net 1,291,000 (26,217,000)
6.01.01.10 Allowance for expected credit losses (52,000) 420,000
6.01.01.11 Write-Off - Overpayments Incorrectly Capitalized 388,000
6.01.01.13 Revision and unwinding of discount on the provision for decommissioning costs 1,055,000 856,000
6.01.01.17 Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA (856,000) 383,000
6.01.01.19 Early termination and cash outflows revision of lease agreements (399,000) (2,585,000)
6.01.02 Decrease / (increase) in assets / increase/ (decrease) in liabilities (22,919,000) (26,191,000)
6.01.02.01 Trade and other receivables, net (3,112,000) (18,387,000)
6.01.02.02 Inventories (7,824,000) (89,000)
6.01.02.03 Judicial deposits (825,000) (1,959,000)
6.01.02.05 Other assets (801,000) 960,000
6.01.02.06 Trade payables (8,683,000) (757,000)
6.01.02.07 Other taxes payable 5,465,000 (2,202,000)
6.01.02.08 Pension and medical benefits (5,252,000) (1,612,000)
6.01.02.09 Provisions for legal proceedings (742,000) (688,000)
6.01.02.10 Short-term benefits (455,000) (504,000)
6.01.02.11 Income tax and social contribution paid (34,000) (832,000)
6.01.02.12 Provision for Decommissioning Costs (885,000) (546,000)
6.01.02.14 Other liabilities 229,000 425,000
6.02 Net cash used in investing activities (54,511,000) (11,024,000)
6.02.01 Acquisition of PP&E and intangibles assets (41,328,000) (16,276,000)
6.02.02 Decrease (increase) in investments in investees (605,000)
6.02.03 Proceeds from disposal of assets - Divestment 1,365,000 3,000
6.02.04 Divestment (investment) in marketable securities (15,539,000) 5,711,000
6.02.05 Dividends received 991,000 143,000
6.03 Net cash used in financing activities 25,585,000 (491,000)
6.03.02 Proceeds from financing 63,976,000 49,199,000
6.03.03 Repayment of principal - finance debt (22,151,000) (28,570,000)
6.03.04 Repayment of interest - finance debt (7,774,000) (4,697,000)
6.03.05 Dividends paid to shareholders of Petrobras (4,427,000)
6.03.08 Settlement of lease liabilities (8,466,000) (11,996,000)
6.05 Net increase/ (decrease) in cash and cash equivalents (859,000) (491,000)
6.05.01 Cash and cash equivalents at the beginning of the year 5,180,000 4,322,000
6.05.02 Cash and cash equivalents at the end of the period 4,321,000 3,831,000
9 

Petróleo Brasileiro S.A. – Petrobras

Parent Company Interim Accounting Information / Statement of Added Value

(R$ Thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
7.01 Sales Revenues 120,559,000 95,614,000
7.01.01 Sales of Goods and Services 110,642,000 87,471,000
7.01.02 Other Revenues 2,740,000 1,011,000
7.01.03 Revenues Related to the Construction of Assets to be Used in Own Operations 7,125,000 7,552,000
7.01.04 Allowance for expected credit losses 52,000 (420,000)
7.02 Inputs Acquired from Third Parties (34,815,000) (83,689,000)
7.02.01 Cost of Sales (20,466,000) (10,262,000)
7.02.02 Materials, Power, Third-Party Services and Other Operating Expenses (5,305,000) (10,074,000)
7.02.03 Impairment Charges / Reversals of Assets (689,000) (55,626,000)
7.02.04 Others (8,355,000) (7,727,000)
7.02.04.01 Tax Credits on Inputs Acquired from Third Parties (8,355,000) (7,339,000)
7.02.04.02 Inventory Write-Down to Net Realizable Value (388,000)
7.03 Gross Added Value 85,744,000 11,925,000
7.04 Retentions (18,081,000) (19,205,000)
7.04.01 Depreciation, Amortization and Depletion (18,081,000) (19,205,000)
7.05 Net Added Value Produced 67,663,000 (7,280,000)
7.06 Transferred Added Value 3,783,000 8,090,000
7.06.01 Share of Profit of Equity-Accounted Investments 2,895,000 6,707,000
7.06.02 Finance Income 467,000 1,014,000
7.06.03 Others 421,000 369,000
7.06.03.01 Rentals, royalties and others 421,000 369,000
7.07 Total Added Value to be Distributed 71,446,000 810,000
7.08 Distribution of Added Value 71,446,000 810,000
7.08.01 Employee Compensation 6,092,000 6,238,000
7.08.01.01 Salaries 3,776,000 3,278,000
7.08.01.02 Fringe Benefits 2,090,000 2,707,000
7.08.01.03 Unemployment Benefits (FGTS) 226,000 253,000
7.08.02 Taxes and Contributions 28,795,000 (4,667,000)
7.08.02.01 Federal 21,731,000 (10,017,000)
7.08.02.02 State 7,025,000 5,236,000
7.08.02.03 Municipal 39,000 114,000
7.08.03 Return on Third-Party Capital 35,392,000 47,762,000
7.08.03.01 Interest 34,086,000 46,318,000
7.08.03.02 Rental Expenses 1,306,000 1,444,000
7.08.04 Return on Shareholders' Equity 1,167,000 (48,523,000)
7.08.04.03 Retained Earnings / (Losses) for the Period 1,167,000 (48,523,000)

 

 

10 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Financial Position - Assets

(R$ Thousand)

   

 

Account Code Account Description 03.31.2021 12.31.2020
1 Total Assets 998,283,000 987,419,000
1.01 Current Assets 153,972,000 142,323,000
1.01.01 Cash and Cash Equivalents 68,155,000 60,856,000
1.01.02 Marketable Securities 3,299,000 3,424,000
1.01.03 Trade and Other Receivables 13,432,000 24,584,000
1.01.04 Inventories 39,730,000 29,500,000
1.01.06 Recoverable Taxes 8,552,000 13,483,000
1.01.06.01 Current Recoverable Taxes 8,552,000 13,483,000
1.01.06.01.01 Current Income Tax and Social Contribution 2,237,000 2,170,000
1.01.06.01.02 Other Recoverable Taxes 6,315,000 11,313,000
1.01.08 Other Current Assets 20,804,000 10,476,000
1.01.08.01 Non-Current Assets Held for Sale 11,650,000 4,081,000
1.01.08.03 Others 9,154,000 6,395,000
1.01.08.03.03 Others 9,154,000 6,395,000
1.02 Non-Current Assets 844,311,000 845,096,000
1.02.01 Long-Term Receivables 113,969,000 104,974,000
1.02.01.03 Marketable Securities measured at amortized cost 231,000 227,000
1.02.01.04 Trade and Other Receivables 14,666,000 13,675,000
1.02.01.07 Deferred Taxes 57,437,000 49,935,000
1.02.01.07.01 Deferred Income Tax and Social Contribution 40,807,000 33,524,000
1.02.01.07.02 Deferred Taxes and Contributions 16,630,000 16,411,000
1.02.01.10 Other Non-Current Assets 41,635,000 41,137,000
1.02.01.10.04 Judicial Deposits 38,881,000 37,838,000
1.02.01.10.05 Other Long-Term Assets 2,754,000 3,299,000
1.02.02 Investments 18,044,000 17,010,000
1.02.03 Property, Plant and Equipment 634,712,000 645,434,000
1.02.04 Intangible Assets 77,586,000 77,678,000

 

 

11 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Financial Position - Liabilities

(R$ Thousand)

   

 

Account Code Account Description 03.31.2021 12.31.2020
2 Total Liabilities 998,283,000 987,419,000
2.01 Current Liabilities 124,469,000 136,287,000
2.01.01 Payroll, Profit Sharing and Related Charges 9,655,000 10,150,000
2.01.02 Trade Payables 29,057,000 35,645,000
2.01.03 Taxes Obligations 832,000 1,029,000
2.01.03.01 Federal Taxes Obligations 832,000 1,029,000
2.01.03.01.01 Income Tax and Social Contribution Payable 832,000 1,029,000
2.01.04 Current Debt and Lease Obligations 49,349,000 51,364,000
2.01.04.01 Current Debt 18,755,000 21,751,000
2.01.04.03 Lease Obligations 30,594,000 29,613,000
2.01.05 Other Liabilities 27,931,000 26,491,000
2.01.05.02 Others 27,931,000 26,491,000
2.01.05.02.01 Dividends and Interest on Capital Payable 4,482,000 4,457,000
2.01.05.02.04 Taxes and Contributions 14,549,000 13,696,000
2.01.05.02.06 Other liabilities 8,900,000 8,338,000
2.01.06 Provisions 3,679,000 8,049,000
2.01.06.02 Other Provisions 3,679,000 8,049,000
2.01.06.02.04 Pension and Medical Benefits 3,679,000 8,049,000
2.01.07 Liabilities Associated with Non-Current Assets Held for Sale and Discontinued 3,966,000 3,559,000
2.01.07.01 Liabilities Associated with Non-Current Assets Held for Sale 3,966,000 3,559,000
2.02 Non-Current Liabilities 553,569,000 539,982,000
2.02.01 Non-Current Debt and Finance Lease Obligations 354,967,000 341,184,000
2.02.01.01 Non-Current Debt 267,917,000 258,287,000
2.02.01.03 Lease Obligations 87,050,000 82,897,000
2.02.02 Other Liabilities 1,802,000 1,853,000
2.02.02.02 Others 1,802,000 1,853,000
2.02.02.02.03 Income Tax and Social Contribution 1,802,000 1,853,000
2.02.03 Deferred Taxes 1,205,000 1,015,000
2.02.03.01 Deferred Taxes 1,205,000 1,015,000
2.02.04 Provisions 195,595,000 195,930,000
2.02.04.01 Provisions for Tax Social Security, Labor and Civil Lawsuits 10,334,000 11,427,000
2.02.04.02 Other Provisions 185,261,000 184,503,000
2.02.04.02.04 Pension and Medical Benefits 76,306,000 75,454,000
2.02.04.02.05 Provision for Decommissioning Costs 96,637,000 97,595,000
2.02.04.02.07 Other Provisions 12,318,000 11,454,000
2.03 Shareholders' Equity 320,245,000 311,150,000
2.03.01 Share Capital 205,432,000 205,432,000
2.03.02 Capital Reserves (1,267,000) 2,449,000
2.03.04 Profit Reserves 128,679,000 127,512,000
2.03.08 Other Comprehensive Income (19,449,000) (26,983,000)
2.03.09 Non-controlling interests 6,850,000 2,740,000

 

 

12 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Income

(R$ Thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
3.01 Sales Revenues 86,174,000 75,469,000
3.02 Cost of Sales (42,141,000) (43,854,000)
3.03 Gross Profit 44,033,000 31,615,000
3.04 Operating Expenses / Income (10,129,000) (77,055,000)
3.04.01 Selling Expenses (5,198,000) (5,914,000)
3.04.02 General and Administrative Expenses (1,496,000) (1,820,000)
3.04.05 Other Operating Expenses (4,454,000) (67,882,000)
3.04.05.01 Other Taxes (581,000) (517,000)
3.04.05.02 Research and Development Expenses (639,000) (422,000)
3.04.05.03 Exploration Costs (1,196,000) (468,000)
3.04.05.05 Other Operating Expenses, Net (1,530,000) (1,174,000)
3.04.05.07 Impairment of Assets Charges / Reversals (508,000) (65,301,000)
3.04.06 Share of Profit / Gains on Interest in Equity-Accounted Investments 1,019,000 (1,439,000)
3.05 Net Income Before Financial Results and Income Taxes 33,904,000 (45,440,000)
3.06 Finance Income (Expenses), Net (30,748,000) (21,178,000)
3.06.01 Finance Income 676,000 798,000
3.06.01.01 Finance Income 676,000 798,000
3.06.02 Finance Expenses (31,424,000) (21,976,000)
3.06.02.01 Finance Expenses (6,613,000) (7,416,000)
3.06.02.02 Foreign Exchange and Inflation Indexation Charges, Net (24,811,000) (14,560,000)
3.07 Net Income Before Income Taxes 3,156,000 (66,618,000)
3.08 Income Tax and Social Contribution (1,880,000) 16,894,000
3.08.01 Current (649,000) (597,000)
3.08.02 Deferred (1,231,000) 17,491,000
3.09 Net Income from Continuing Operations 1,276,000 (49,724,000)
3.11 Income / (Loss) for the Period 1,276,000 (49,724,000)
3.11.01 Attributable to Shareholders of Petrobras 1,167,000 (48,523,000)
3.11.02 Attributable to Non-Controlling Interests 109,000 (1,201,000)
3.99.01.01 Ordinary Shares (4)
3.99.01.02 Preferred Shares (4)
3.99.01 Income per Share      
3.99.02.01 Ordinary Shares  0.09  (3.72)
3.99.02.02 Preferred Shares  0.09  (3.72)
3.99.02 Diluted Income per Share    

 

13 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Comprehensive Income

(R$ Thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
4.01 Net Income for the Period 1,276,000 (49,724,000)
4.02 Other Comprehensive Income 7,925,000 (14,295,000)
4.02.01 Actuarial Gains / (Losses) on Defined Benefits Plans (15,000) 2,000
4.02.02 Deferred Income Tax and Social Contribution on Actuarial Gains / (Losses) on Defined Benefits Plans (1,000)
4.02.03 Cumulative Translation Adjustments 24,676,000 50,312,000
4.02.04 Unrealized Gains/(Losses) on securities measured at fair value through other comprehensive income (10,000)
4.02.07 Unrealized Gains / (Losses) on Cash Flow Hedge  - Recognized in Shareholders' Equity (30,521,000) (100,044,000)
4.02.08 Unrealized Gains / (Losses) on Cash Flow Hedge  - Reclassified to Profit and Loss 6,094,000 6,449,000
4.02.09 Deferred Income Tax and Social Contribution on Cash Flow Hedge 8,305,000 31,822,000
4.02.10 Share of Other Comprehensive Income of Equity-Accounted Investments (614,000) (2,825,000)
4.03 Total Comprehensive Income for the Period 9,201,000 (64,019,000)
4.03.01 Attributable to Shareholders of Petrobras 8,701,000 (63,712,000)
4.03.02 Attributable to Non-controlling Interests 500,000 (307,000)

 

 

14 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2021 to 03/31/2021

(R$ Thousand)

   

 

Account Code Account Description Share Capital

Capital Reserves,

Granted Options

and Treasury Shares

Profit Reserves

Retained Earnings /

Accumulated Losses

Other

Comprehensive

Income

Shareholders' Equity

Non-controlling

interest

Shareholders' Equity

Consolidated

5.01 Balance at the Beginning of the Period 205,432,000 2,665,000 127,296,000 (26,983,000) 308,410,000 2,740,000 311,150,000
5.04 Capital Transactions with Owners (3,716,000) (3,716,000) 3,610,000 (106,000)
5.04.01 Capital Increases 11,000 11,000
5.04.06 Dividends (14,000) (14,000)
5.04.08 Capital Transactions (3,716,000) (3,716,000) 3,613,000 (103,000)
5.05 Total of Comprehensive Income 1,167,000 7,534,000 8,701,000 500,000 9,201,000
5.05.01 Net Income for the Period 1,167,000 1,167,000 109,000 1,276,000
5.05.02 Other Comprehensive Income 7,534,000 7,534,000 391,000 7,925,000
5.07 Balance at the End of the Period 205,432,000 (1,051,000) 127,296,000 1,167,000 (19,449,000) 313,395,000 6,850,000 320,245,000
15 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Changes in Shareholders’ Equity - 01/01/2020 to 03/31/2020

(R$ Thousand)

   

 

Account Code Account Description Share Capital

Capital Reserves,

Granted Options

and Treasury Shares

Profit Reserves

Retained Earnings /

Accumulated Losses

Other

Comprehensive

Income

Shareholders' Equity

Non-controlling

interest

Shareholders' Equity

Consolidated

5.01 Balance at the Beginning of the Period 205,432,000 2,665,000 124,613,000 (37,169,000) 295,541,000 3,596,000 299,137,000
5.04 Capital Transactions with Owners (2,000) 2,000 (193,000) (193,000)
5.04.08 Capital Transactions (193,000) (193,000)
5.04.09 Realization of the Deemed Cost (2,000) 2,000
5.05 Total of Comprehensive Income (48,523,000) (15,189,000) (63,712,000) (307,000) (64,019,000)
5.05.01 Net Income for the Period (48,523,000) (48,523,000) (1,201,000) (49,724,000)
5.05.02 Other Comprehensive Income (15,189,000) (15,189,000) 894,000 (14,295,000)
5.07 Balance at the End of the Period 205,432,000 2,665,000 124,613,000 (48,525,000) (52,356,000) 231,829,000 3,096,000 234,925,000
16 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Cash Flows – Indirect Method

(R$ Thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
6.01 Net cash provided by operating activities 40,070,000 34,991,000
6.01.01 Cash provided by operating activities 50,837,000 38,708,000
6.01.01.01 Net Income (loss) for the period 1,276,000 (49,724,000)
6.01.01.02 Pension and medical benefits (actuarial expense) 1,726,000 2,157,000
6.01.01.03 Results of equity-accounted investments (1,019,000) 1,439,000
6.01.01.04 Depreciation, depletion and amortization 15,630,000 15,758,000
6.01.01.05 Impairment of assets (reversal) 508,000 65,301,000
6.01.01.06 Exploratory expenditures write-offs 740,000 117,000
6.01.01.08 Foreign exchange, indexation and finance charges 30,244,000 18,440,000
6.01.01.09 Deferred income taxes, net 1,231,000 (17,491,000)
6.01.01.10 Allowance for expected credit losses (86,000) 474,000
6.01.01.11 Inventory write-down (write-back) to net realizable value (6,000) 1,389,000
6.01.01.13 Revision and unwinding of discount on the provision for decommissioning costs 1,062,000 858,000
6.01.01.17 Disposal/write-offs of assets, remeasurement of investment retained with loss of control and reclassification of CTA (74,000) 446,000
6.01.01.19 Early termination and cash outflows revision of lease agreements (395,000) (456,000)
6.01.02 Decrease / (increase) in assets / increase/ (decrease) in liabilities (10,767,000) (3,717,000)
6.01.02.01 Trade and other receivables, net (479,000) 4,090,000
6.01.02.02 Inventories (10,793,000) 2,558,000
6.01.02.03 Judicial deposits (839,000) (1,961,000)
6.01.02.05 Other assets 137,000 (1,523,000)
6.01.02.06 Trade payables 3,375,000 (3,242,000)
6.01.02.07 Other taxes payable 6,106,000 (2,143,000)
6.01.02.08 Pension and medical benefits (5,253,000) (1,614,000)
6.01.02.09 Provisions for legal proceedings (1,159,000) (645,000)
6.01.02.10 Short-term benefits (468,000) (493,000)
6.01.02.11 Income tax and social contribution paid (710,000) (1,120,000)
6.01.02.12 Provision for Decommissioning Costs (887,000) (546,000)
6.01.02.14 Other liabilities 203,000 2,922,000
6.02 Net cash used in investing activities (7,427,000) (6,664,000)
6.02.01 Acquisition of PP&E and intangibles assets (8,981,000) (8,342,000)
6.02.02 Decrease (increase) in investments in assets (4,000) 15,000
6.02.03 Proceeds from disposal of assets - Divestment 1,054,000 1,168,000
6.02.04 Divestment (investment) in marketable securities 138,000 295,000
6.02.05 Dividends received 366,000 200,000
6.03 Net cash used in financing activities (30,822,000) 12,799,000
6.03.01 Investments by non-controlling interest (102,000) (186,000)
6.03.02 Proceeds from financing 299,000 48,777,000
6.03.03 Repayment of principal - finance debt (17,080,000) (19,570,000)
6.03.04 Repayment of interest - finance debt (5,898,000) (4,938,000)
6.03.05 Dividends paid to shareholders of Petrobras (4,427,000)
6.03.06 Dividends paid to non-controlling interests (1,000) (35,000)
6.03.08 Settlement of lease liabilities (8,040,000) (6,822,000)
6.04 Effect of exchange rate changes on cash and cash equivalents 5,408,000 9,556,000
6.05 Net increase/ (decrease) in cash and cash equivalents 7,229,000 50,682,000
6.05.01 Cash and cash equivalents at the beginning of the year 60,930,000 29,729,000
6.05.02 Cash and cash equivalents at the end of the period 68,159,000 80,411,000

 

 

17 

Petróleo Brasileiro S.A. – Petrobras

Consolidated Interim Accounting Information / Statement of Added Value

(R$ Thousand)

   

 

Account Code Account Description Accumulated of the Current Year 01/01/2021 to 03/31/2021 Accumulated of the Previous Year 01/01/2020 to 03/31/2020
7.01 Sales Revenues 121,529,000 102,743,000
7.01.01 Sales of Goods and Services 108,137,000 94,944,000
7.01.02 Other Revenues 4,225,000 331,000
7.01.03 Revenues Related to the Construction of Assets to be Used in Own Operations 9,081,000 7,942,000
7.01.04 Allowance for expected credit losses 86,000 (474,000)
7.02 Inputs Acquired from Third Parties (34,614,000) (97,597,000)
7.02.01 Cost of Sales (20,262,000) (11,876,000)
7.02.02 Materials, Power, Third-Party Services and Other Operating Expenses (5,988,000) (12,256,000)
7.02.03 Impairment Charges / Reversals of Assets (508,000) (65,301,000)
7.02.04 Others (7,856,000) (8,164,000)
7.02.04.01 Tax Credits on Inputs Acquired from Third Parties (7,862,000) (6,775,000)
7.02.04.02 Inventory Write-Down to Net Realizable Value 6,000 (1,389,000)
7.03 Gross Added Value 86,915,000 5,146,000
7.04 Retentions (16,805,000) (17,068,000)
7.04.01 Depreciation, Amortization and Depletion (16,805,000) (17,068,000)
7.05 Net Added Value Produced 70,110,000 (11,922,000)
7.06 Transferred Added Value 1,877,000 (479,000)
7.06.01 Share of Profit of Equity-Accounted Investments 1,019,000 (1,439,000)
7.06.02 Finance Income 676,000 798,000
7.06.03 Others 182,000 162,000
7.06.03.01 Rentals, royalties and others 182,000 162,000
7.07 Total Added Value to be Distributed 71,987,000 (12,401,000)
7.08 Distribution of Added Value 71,987,000 (12,401,000)
7.08.01 Employee Compensation 6,763,000 7,190,000
7.08.01.01 Salaries 4,283,000 3,945,000
7.08.01.02 Fringe Benefits 2,227,000 2,941,000
7.08.01.03 Unemployment Benefits (FGTS) 253,000 304,000
7.08.02 Taxes and Contributions 30,229,000 5,728,000
7.08.02.01 Federal 22,910,000 71,000
7.08.02.02 State 7,171,000 5,437,000
7.08.02.03 Municipal 148,000 220,000
7.08.03 Return on Third-Party Capital 33,719,000 24,405,000
7.08.03.01 Interest 32,582,000 23,209,000
7.08.03.02 Rental Expenses 1,137,000 1,196,000
7.08.04 Return on Shareholders' Equity 1,276,000 (49,724,000)
7.08.04.03 Retained Earnings / (Losses) for the Period 1,167,000 (48,523,000)
7.08.04.04 Non-controlling Interests on Retained Earnings / (Losses) 109,000 (1,201,000)

 

18 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

 

1.Basis of preparation

These interim financial statements present the significant changes in the period, avoiding repetition of certain notes to the financial statements previously reported, and present the consolidated information, considering Management’s understanding that it provides a comprehensive view of the Company’s financial position and operational performance, complemented by certain information of the Parent Company. Hence, this interim financial information should be read together with the Company’s audited annual financial statements for the year ended December 31, 2020, which include the full set of notes.

The interim consolidated and separate financial statements (Parent Company) have been prepared and are presented in accordance with IAS 34 – “Interim Financial Reporting” as issued by the International Accounting Standards Board (IASB), and with the pronouncement CPC 21 (R1) – Demonstrações Intermediárias as issued by the Brazilian Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis - CPC) and released by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM). All financial statements relevant information is being evidenced and corresponds to the ones used by the Company’s Management.

These interim financial statements were approved and authorized for issue by the Company’s Board of Directors in a meeting held on May 13, 2021.

 

 

2.Summary of significant accounting policies

The same accounting policies and methods of computation were followed in these consolidated interim financial statements as those followed in the preparation of the annual financial statements of the Company for the year ended December 31, 2020.

3.Cash and cash equivalents and Marketable securities
3.1.Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, term deposits with banks and short-term highly liquid financial investments that are readily convertible to known amounts of cash, are subject to insignificant risk of changes in value and have a maturity of three months or less from the date of acquisition.

  Consolidated
  03.31.2021 12.31.2020
Cash at bank and in hand 3,770 2,868
Short-term financial investments    
   - In Brazil    
         Brazilian interbank deposit rate investment funds and other short-term deposits 17,830 13,469
         Other investment funds 627 143
  18,457 13,612
   - Abroad    
 Time deposits 11,947 13,376
Automatic investing accounts and interest checking accounts 32,095 29,274
 Other financial investments 1,886 1,726
  45,928 44,376
Total short-term financial investments 64,385 57,988
Total cash and cash equivalents 68,155 60,856

 

 

Short-term financial investments in Brazil primarily consist of investments in funds holding Brazilian Federal Government Bonds that can be redeemed immediately, as well as reverse repurchase agreements that mature within three months as of the date of their acquisition. Short-term financial investments abroad comprise time deposits that mature in three months or less from the date of their acquisition, highly-liquid automatic investment accounts, interest checking accounts and other short-term fixed income instruments.

The main funds generated were substantially provided by operating cash generation of R$ 40,070, proceeds from divestments of R$ 1,054 and by the exchange rate effect on the balances of cash and cash equivalents from financial investments abroad of R$ 5,408.

 

The main uses of funds in the period ended March 31, 2021 were for debt service obligations, including pre-payments of debt in the international banking market, repurchase of securities in the international capital market, and amortization of leases, in the total of R$ 31,018 and investments in the amount of R$ 8,981.

19 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

3.2.Marketable securities
    Consolidated
  03.31.2021 12.31.2020
Fair value through profit or loss 3,279 3,388
Amortized cost 251 263
Total 3,530 3,651
Current 3,299 3,424
Non-current 231 227
 

Marketable securities classified as fair value through profit or loss refer mainly to investments in Brazilian Federal Government Bonds. These financial investments have maturities of more than three months and are generally classified as current assets due to their maturity or the expectation of their realization in the short term.

4.Sales revenues
  Consolidated
 

2021

Jan-Mar

2020

Jan-Mar

Gross sales 108,137 94,944
Sales taxes (*) (21,963) (19,475)
Sales revenues 86,174 75,469
Diesel 25,161 18,023
Automotive gasoline 11,068 8,327
Liquefied petroleum gas 5,018 4,010
Jet fuel 2,328 3,721
Naphtha 1,812 2,976
Fuel oil (including bunker fuel) 1,829 1,165
Other oil products 4,815 3,069
Subtotal oil products 52,031 41,291
Natural gas 5,678 5,372
Nitrogen products and renewables 74 117
Breakage 365 407
Electricity 2,970 1,250
Services, agency and others 1,166 703
Domestic market 62,284 49,140
Exports 22,800 24,711
Crude oil 15,462 19,006
Fuel oil (including bunker fuel) 6,598 4,652
Other oil products and other products 740 1,053
Sales abroad (**) 1,090 1,618
Foreign Market 23,890 26,329
Sales revenues 86,174 75,469

 

 (*) Includes, mainly, CIDE, PIS, COFINS and ICMS (VAT).
(**) Sales revenues from operations outside of Brazil, including trading and excluding exports.

 

 

In the three-month periods ended March 31, 2021 and 2020, sales to BR Distribuidora represent more than 10% of the Company sales revenues, mainly associated with the refining, transportation and marketing segment.

 

20 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

 

5.Costs and expenses by nature
5.1.Cost of sales
  Consolidated
  2021 2020
  Jan-Mar Jan-Mar
Raw material, products for resale, materials and third-party services (*) (14,593) (19,912)
Depreciation, depletion and amortization (12,242) (12,793)
Production taxes (12,911) (8,031)
Employee compensation (2,395) (3,118)
Total (42,141) (43,854)
(*) It Includes short-term leases and inventory turnover.

 

5.2.Selling expenses
  Consolidated
  2021 2020
  Jan-Mar Jan-Mar
Materials, third-party services, freight, rent and other related costs (4,299) (5,105)
Depreciation, depletion and amortization (814) (549)
Allowance for expected credit losses 31 (46)
Employee compensation (116) (214)
Total (5,198) (5,914)

 

 

5.3.General and administrative expenses
  Consolidated
  2021 2020
  Jan-Mar Jan-Mar
Employee compensation (1,013) (1,277)
Materials, third-party services, rent and other related costs (351) (416)
Depreciation, depletion and amortization (132) (127)
Total (1,496) (1,820)

 

 

6.Other income and expenses
  Consolidated
  2021 2020
  Jan-Mar Jan-Mar
Unscheduled stoppages and pre-operating expenses (1,641) (1,584)
Pension and medical benefits – retirees (1,189) (1,327)
Variable compensation program (528) 171
Equalization of expenses - Production Individualization Agreements (244) 111
Reclassification of comprehensive income (loss) due to the disposal of equity-accounted investments (183)
Profit Sharing (157) (25)
Gains/(losses) with Commodities Derivatives (126) 1,037
Gains / (losses) on decommissioning of returned/abandoned areas (35) (6)
Voluntary Separation Incentive Plan – PDV 21 (187)
Fines imposed on suppliers 160 225
Results on disposal/write-offs of assets and on remeasurement of investment retained with loss of control 257 (446)
Gains / (losses) related to legal, administrative and arbitration proceedings 294 (281)
Early termination and cash outflows revision of lease agreements 395 457
Expenses/Reimbursements from E&P partnership operations 552 856
Amounts recovered from Lava Jato investigation 790 96
Others 104 (271)
Total (1,530) (1,174)
 
21 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

7.Net finance income (expense)
  Consolidated
  2021 2020
  Jan-Mar Jan-Mar
Finance income 676 798
Income from investments  and marketable securities (Government Bonds) 160 298
Others 516 500
Finance expenses (6,613) (7,416)
Interest on finance debt (4,119) (4,545)
Unwinding of discount on lease liabilities (1,607) (1,517)
Discount and premium on repurchase of debt securities (1,013) (1,245)
Capitalized borrowing costs 1,154 1,234
Unwinding of discount on the provision for decommissioning costs (1,027) (853)
Other finance expenses and income, net (1) (490)
Foreign exchange gains (losses) and indexation charges (24,811) (14,560)
Foreign Exchange (*) (18,727) (8,382)
Reclassification of hedge accounting to the Statement of Income (*) (6,094) (6,449)
Others 10 271
Total (30,748) (21,178)
(*) For more information, see notes 29.3.c and 29.3.a.
 

 

8.Net income by operating segment

Consolidated Statement of Income by operating segment – Jan-Mar/2021

  Exploration and Production Refining, Transportation & Marketing

Gas

&

Power

Corporate and other business Eliminations Total
Sales revenues 63,952 76,741 12,087 836 (67,442) 86,174
     Intersegments 62,783 1,282 3,026 351 (67,442)
     Third parties 1,169 75,459 9,061 485 86,174
Cost of sales (28,636) (64,975) (7,271) (823) 59,564 (42,141)
Gross profit 35,316 11,766 4,816 13 (7,878) 44,033
Expenses (2,888) (2,186) (4,103) (1,943) (28) (11,148)
    Selling (1) (1,839) (3,301) (29) (28) (5,198)
    General and administrative (178) (180) (94) (1,044) (1,496)
    Exploration costs (1,196) (1,196)
    Research and development (467) (11) (27) (134) (639)
    Other taxes (91) (220) (127) (143) (581)
    Impairment (538) 30 (508)
    Other income and expenses (417) 64 (554) (623) (1,530)
Net income (loss) before financial results and income taxes 32,428 9,580 713 (1,930) (7,906) 32,885
    Net finance income (expenses) (30,748) (30,748)
    Results in equity-accounted investments 126 616 215 62 1,019
Net Income (loss) before income taxes 32,554 10,196 928 (32,616) (7,906) 3,156
    Income taxes (11,025) (3,257) (242) 9,956 2,688 (1,880)
Net income (loss) of the period 21,529 6,939 686 (22,660) (5,218) 1,276
Attributable to:            
Shareholders of Petrobras 21,533 6,939 558 (22,645) (5,218) 1,167
Non-controlling interests (4) 128 (15) 109
  21,529 6,939 686 (22,660) (5,218) 1,276

 

 

22 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

 

Consolidated Statement of Income by operating segment – Jan-Mar/2020
  Exploration and Production Refining, Transportation & Marketing

Gas

&

Power

Corporate and other business Eliminations Total
Sales revenues 47,575 68,160 10,467 857 (51,590) 75,469
     Intersegments 46,658 1,328 3,336 268 (51,590)
     Third parties 917 66,832 7,131 589 75,469
Cost of sales (26,224) (68,162) (5,905) (830) 57,267 (43,854)
Gross profit 21,351 (2) 4,562 27 5,677 31,615
Expenses (65,967) (4,080) (3,016) (2,521) (32) (75,616)
    Selling (1) (2,860) (3,006) (18) (29) (5,914)
    General and administrative (206) (272) (117) (1,225) (1,820)
    Exploration costs (468) (468)
    Research and development (274) (12) (13) (123) (422)
    Other taxes (71) (193) (37) (216) (517)
    Impairment (64,304) (208) (789) (65,301)
    Other income and expenses (643) (535) 157 (150) (3) (1,174)
Net income (loss) before financial results and income taxes (44,616) (4,082) 1,546 (2,494) 5,645 (44,001)
    Net finance income (expenses) (21,178) (21,178)
    Results in equity-accounted investments (758) (848) (12) 179 (1,439)
Net Income (loss) before income taxes (45,374) (4,930) 1,534 (23,493) 5,645 (66,618)
    Income taxes 15,169 1,388 (526) 2,782 (1,919) 16,894
Net income (loss) of the period (30,205) (3,542) 1,008 (20,711) 3,726 (49,724)
Attributable to:            
   Shareholders of Petrobras (30,205) (3,397) 937 (19,584) 3,726 (48,523)
   Non-controlling interests (145) 71 (1,127) (1,201)
  (30,205) (3,542) 1,008 (20,711) 3,726 (49,724)

 

The balance of depreciation, depletion and amortization by business segment is set forth as follows:

  Exploration and Production Refining, Transportation & Marketing

Gas

&

Power

Corporate and other business Total
Jan-Mar/2021 11,872 2,950 582 226 15,630
Jan-Mar/2020 12,410 2,483 612 253 15,758

 

9.Trade and other receivables
9.1.Trade and other receivables, net
  Consolidated
  03.31.2021 12.31.2020
Receivables from contracts with customers
Third parties 16,709 16,013
Related parties    
Investees (note 30.5) 2,975 3,450
Receivables from the electricity sector 949 1,064
Subtotal 20,633 20,527
Other trade  receivables    
 Third parties    
Receivables from divestments (*) 8,499 7,916
Lease receivables 2,638 2,427
Other receivables (**) 2,346 13,179
Related parties    
Petroleum and alcohol accounts - receivables from Brazilian Government (note 30.5) 2,566 2,503
Subtotal 16,049 26,025
Total trade receivables 36,682 46,552
Expected credit losses (ECL) - Third parties (8,293) (7,939)
Expected credit losses (ECL) - Related parties (291) (354)
Total trade receivables, net 28,098 38,259
Current 13,432 24,584
Non-current 14,666 13,675

(*) Refers mainly to amounts receivable (including interest and monetary and foreign exchange restatement) from the divestment in Nova Transportadora do Sudeste (NTS) and Roncador's contingent portion

(**) In 2020, it mainly includes amounts related to the purchase and sale of production platforms and equipment from our partners in E&P consortia, with financial settlement in the first quarter of 2021.

 

 

Trade and other receivables are generally classified as measured at amortized cost, except for receivables with final prices linked to changes in commodity price after their transfer of control, which are classified as measured at fair value through profit or loss. Changes in such prices as of March 31, 2021 amounted to R$ 4,425.

In the first quarter of 2021, the average term for receiving receivables from contracts with third parties, referring to the sale of oil products on the domestic market is approximately 1.6 days. Exports of fuel oil and crude oil have an average collection period of approximately 15 days and 6.5 days, respectively.

23 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

9.2.Aging of trade and other receivables – third parties
    Consolidated
  03.31.2021 12.31.2020
  Trade receivables Expected credit losses (ECL) Trade receivables Expected credit losses (ECL)
Current 21,602 (697) 30,402 (677)
Overdue:        
1- 3 months 135 (31) 1,066 (42)
3 - 6 months 46 (21) 77 (46)
6 - 12 months 116 (50) 219 (147)
More than 12 months 8,293 (7,494) 7,771 (7,027)
Total 30,192 (8,293) 39,535 (7,939)

 

9.3.Changes in provision for expected credit losses
  Consolidated
  03.31.2021 12.31.2020
Opening balance 8,293 9,392
Additions 111 1,024
Reversals (187) (166)
Write-offs (2) (3,596)
Transfer of assets held for sale (15)
Cumulative translation adjustment 369 1,654
Closing balance 8,584 8,293
Current 1,014 1,135
Non-current 7,570 7,158

In 2020, write-offs of R$ 3,596 basically reflect receivables from suppliers, related to the construction and renovation of platforms, which were already fully provisioned.

 

10.Inventories
  Consolidated
  03.31.2021 12.31.2020
Crude oil 17,483 11,653
Oil products 12,988 10,001
Intermediate products 2,671 2,060
Natural gas and LNG (*) 1,503 631
Biofuels 64 157
Fertilizers 86 43
Total products 34,795 24,545
Materials, supplies and others 4,935 4,955
Total 39,730 29,500
(*) Liquefied Natural Gas

 

Consolidated inventories are presented less a provision for adjustment to their net realizable value. These adjustments are mainly due to fluctuations in the international quotations of crude oil and oil products and, when constituted, are recognized in the income statement for the period as costs of sales. In the period from January to March 2021, reversal of provision was recorded in the amount of R$ 6 (provision of R$ 1,389, in the period from January to March 2020).

As of March 31, 2021, the Company had a volume of oil and / or oil products given as a guarantee of the Terms of Financial Commitment - TCF, signed in 2008 with Petros, in the amount of R$ 9,788, after deducting the equivalent volumes of early partial liquidation of the Pre-70 TCF carried out in January 2021, the procedures for which to update the public records are in progress.

24 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

11.Taxes
11.1Income taxes and other taxes

 

 

Income tax and social contribution           Consolidated
  Current assets Current liabilities Non-current liabilities 
  03.31.2021 12.31.2020 03.31.2021 12.31.2020 03.31.2021 12.31.2020
Taxes in Brazil             
Income taxes 2,065 2,032 95 576
Income taxes - Tax settlement programs 235 234 1,802 1,853
  2,065 2,032 330 810 1,802 1,853
Taxes abroad 172 138 502 219 -
Total 2,237 2,170 832 1,029 1,802 1,853

 

 
Other taxes Current assets Non-current assets Current liabilities Non-current liabilities (*)
  03.31.2021 12.31.2020 03.31.2021 12.31.2020 03.31.2021 12.31.2020 03.31.2021 12.31.2020
Taxes in Brazil:  
Current / Deferred VAT Rate (VAT) 3,582 2,635 1,531 1,522 2,869 3,334
Current / Deferred PIS and COFINS 2,083 1,768 10,862 10,680 1,161 2,829 195 191
PIS and COFINS – Exclusion of VAT tax rate from PIS and COFINS tax bases 369 6,392
PIS and COFINS - Law 9,718/98     3,542 3,537        
CIDE 12 19 154 214
Production taxes/Royalties 9,429 6,094 341 487
Withholding income taxes 272 551
Others 222 453 643 621 584 608 1,261 1,430
Total in Brazil 6,268 11,267 16,578 16,360 14,469 13,630 1,797 2,108
Taxes abroad 47 46 52 51 80 66
Total 6,315 11,313 16,630 16,411 14,549 13,696 1,797 2,108

(*) Other non-current taxes are classified as other liabilities.

 

25 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

 

 

Exclusion of VAT tax from PIS and COFINS tax basis

In 2020, Petrobras and subsidiaries obtained a favorable and definitive court decision regarding the exclusion of VAT Tax from the calculation basis of PIS and COFINS contributions and recognized the amount of R$ 16,764, recorded in current assets as taxes and contributions. The credits recognized in the assets refer to the exclusion of the VAT Tax effectively collected from the calculation base of the PIS and COFINS contributions, the amounts of which were paid improperly in competencies between the months of October 2001 and August 2020.

The company enabled these credits, of which it offset in 2020 with the payment of other federal taxes, totaling R$ 16,395 (R$ 10,372 in 2020).

As of March 31, 2021, the amount monetarily restated by the Brazilian basic interest rate (Selic) is R$ 369.

11.2          Tax amnesty programs – State Tax (Programas de Anistias Estaduais)

Petrobras, based on the management of risks associated with litigation and in line with the value generation strategy, adhered to the state amnesty programs in Rio de Janeiro and Bahia, generating a positive effect on the result of the 1st quarter of 2021 in the amount of R$ 867, due to the reversal of part of the related provisions, against tax expenses and other operating income and expenses of R$ 659 and financial result of R$ 208.

State of Rio de Janeiro

The State of Rio de Janeiro instituted a special installment program called PEP-ICMS VAT Tax, authorized by CONFAZ Agreement No. 87/2020, created by State Supplementary Law No. 189/2020 and regulated by Decree 47,488 of February 12, 2021, which allowed the reduction of 90% of the late payment charges due as a fine and interest.

The adhesion to the program creates conditions for the settlement of ICMS disputes involving tax credits provisioned in the total amount of R$ 1,513, through estimated disbursement of R$ 533 which includes spontaneous termination due to the cancellation of part of the scope of Comperj (current Gaslub). As a result, on March 31, 2021, the Company reassessed expected disbursements as probable and reversed R$ 980 in the respective provisions for lawsuits and taxes.

In April 2021, the company joined the program and the full payment of the remaining obligations will occur by the end of June 2021.

State of Bahia

The adhesion to the remission and amnesty program with the State of Bahia was celebrated under the terms of VAT Tax Agreements 48/2020 and 49/2020, ratified by Law 14.286 / 2020, which allowed the remission of 50% of the tax and 90% of the fine and interest due. Tax debts resulting from disallowance of tax credits were closed in January 2021 with the payment of R$ 113, providing a definitive solution for this type of contingency.

11.3Reconciliation between statutory tax rate and effective tax expense rate

The following table provides the reconciliation of Brazilian statutory tax rate to the Company’s effective rate on income before income taxes:

26 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

       

  Consolidated
  2021 2020
  Jan-Mar Jan-Mar
Net income (loss) before income taxes 3,156 (66,618)
Nominal income taxes computed based on Brazilian statutory corporate tax rates (34%) (1,073) 22,650
Adjustments to arrive at the effective tax rate:    
Different jurisdictional tax rates for companies abroad 115 (3,669)
Brazilian income taxes on income of companies incorporated outside Brazil (*) (1,156) (1,124)
Tax incentives 3
Tax loss carryforwards (unrecognized tax losses) (166) 173
Non-taxable income (non-deductible expenses), net (**) 229 438
Expenses with post-employment medical benefits (242) (391)
Results of equity-accounted investments in Brazil and abroad 413 (499)
Others 1 (687)
Income taxes expense (1,880) 16,894
Deferred income taxes (1,231) 17,491
Current income taxes (649) (597)
Total (1,880) 16,894
Effective tax rate of income taxes 59.6% 25.4%
(*) It relates to Brazilian income taxes on earnings of offshore investees, as established by Law No. 12,973/2014.
(**) It includes provisions for legal proceedings.
11.4Deferred income taxes - non-current

Changes of deferred income tax and social contribution

    Consolidated
      2021 2020
Balance at January 1st     32,509 (1,502)
Recognized in the statement of income for the year     (1,231) 8,940
Recognized in shareholders’ equity     8,305 24,858
Cumulative translation adjustment     5 559
Use of tax credits     (332)
Others     14 (14)
Total     39,602 32,509
Deferred tax assets     40,807 33,524
Deferred tax liabilities     (1,205) (1,015)
Total     39,602 32,509
         

 

The table below shows the composition and the basis for realization of deferred tax assets and liabilities:

Nature Foundation for realization         03.31.2021 12.31.2020

 

Property, plant and equipment - Cost of prospecting and dismantling areas

 

Depreciation, Amortization and Write-off of Assets

(15,074) (16,655)
Property, plant and equipment - Impairment Amortization, Write-off of Assets and Impairment Reversal 34,703 34,435
Property, plant and equipment – Others (*) Depreciation, Amortization and Write-off of Assets (56,241) (45,157)
Loans, accounts receivable / payable and financing Payments, Receipts and Consideration 31,418 20,335
Leases Appropriation of leases 9,088 6,186
Provision for lawsuits Payment and reversal of the provision 3,371 3,453
Tax losses Compensation of 30% of taxable income 15,347 12,995
Inventories Sale, Write-Off and Loss 1,813 822
Employee benefits, mainly pension plan Payment and reversal of the provision 14,907 14,972
Others       270 1,123
Total           39,602 32,509
(*) includes accelerated incentive depreciation, difference in depreciation per unit produced x straight-line method, as well as capitalized financial charges
               

 

27 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

12Short-term and other benefits

The balance of the main benefits for employees, current and non-current, is presented as follows:

  Consolidated
  03.31.2021 12.31.2020
Voluntary Severance Program (PDV) 4,094 4,678
Employees variable compensation program 2,592 2,715
Accrued vacation pay and Christmas Bonus 2,596 2,443
Salaries and related charges 1,007 1,059
Profit sharing 172 20
Total 10,461 10,915
Current 9,655 10,150
Non-current (*) 806 765

(*) Amount classified in other liabilities

12.1 Voluntary Severance Programs

As of March 31, 2021, changes in the provision for expenses relating to separation plans implemented by the Company are set out as follows:

  Consolidated
  03.31.2021 12.31.2020
Opening Balance 4,678 565
Enrollments 122 5,723
Revision of provisions (143) (315)
Separations in the period (563) (1,295)
Closing Balance 4,094 4,678
Current 3,296 3,921
Non-current 798 757
 

 

 

The recognition of the provision for expenditures on retirement programs occurred as employees joined.

The company opted to defer the payment of indemnities in two installments, the first at the time of termination, together with the legal severance payments and the second, when applicable, 12 months after the payment of the first installment, with an estimated disbursement of R$ 4,094, being R$ 3,296 in 2021, R$ 569 in 2022 and R$ 229 in 2023.

The voluntary termination program (PDV 2019), for retired employees under the Brazilian Social Security Institute (INSS), until the enactment of the Pension Reform, had enrollments reopened during January 2021 for employees not yet enrolled or who have given up membership for any reason until December 29, 2020. During the reopening period, 195 employees signed up for the program.

On March 29, 2021, the Company opened the sixth opportunity for the separation of corporate employees, with application deadline on April 19, 2021 and had the adhesion of 35 employees.

12.2Variable compensation program

Performance award program (PPP)

On January 26, 2021, the Board of Directors approved an adjustment in the criteria for granting PPP 2020 to employees (previously approved on April 28, 2020), changing the PPP regulation, in which, for the activation of the Program, it is necessary to have net income for the year, disregarding the impact of impairment values ​​and exchange variation recorded in Petrobras' net financial result, associated with compliance with company performance metrics and the individual performance of employees and results of the areas in their calculation.

In February 2021, the Company advanced part of the amount of the PPP 2020 to employees, with discharge on April 14, 2021, in the amount of R$ 651.

On March 31, 2021, the company provisioned R$ 528 (R$ 489 in the parent company) related to the variable remuneration for the 2021 fiscal year of employees, recorded in other operating expenses.

12.3Profit sharing (PLR)

At December 29, 2020, the 17 unions representing onshore employees had signed the agreement for the PLR for the next two years (2021/2022) before the deadline determined by the Collective Labor Agreement (ACT). Among the offshore employees, only Sindmestre (Sindicato Nacional dos Mestres de Cabotagem e dos Contra Mestres em Transportes Marítimos) had signed the agreement within the period defined by the ACT.

28 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

The PLR ​​regulation 2021/2022 covers employees without managerial functions and provides for the establishment of a minimum floor / ceiling of up to two remunerations, limited to R$ 10 thousand, for employees who earn up to R$ 5 thousand and will be cumulative to the payment of the Performance Award Program - PPP .

In order for PLR to be triggered in the years 2021 and 2022, in addition to the PLR ​​agreement being signed, the following triggers / requirements must be met: i) approval of dividend distribution by the Annual General Meeting (AGO); ii) calculation of net income in the reference year; and iii) reaching the average percentage, weighted by weight, of the set of indicator targets of at least 80%.

The maximum amount of PLR to be distributed is limited to 6.25% of net income and 25% of dividends distributed to shareholders, in each year.

On March 31, 2021, the company provisioned R$ 157 (R$ 139 at the parent company) related to the employees' participation in the company's income, recorded in other operating expenses.

13Employee benefits (Post-Employment)

The balances related to post-employment benefits granted to employees are shown below:

 

  Consolidated
  03.31.2021 12.31.2020
Liabilities    
AMS Health Care Plan 28,237 27,836
Petros Pension Plan - Renegotiated (PPSP-R) (*) 31,497 31,265
Petros Pension Plan - Non-renegotiated (PPSP-NR) (*) 8,477 8,424
Petros Pension Plan - Renegotiated Pre-70 (PPSP-R Pre-70) 5,503 7,837
Petros Pension Plan - Non-renegotiated Pre-70 (PPSP-NR Pre-70) 3,608 5,588
Petros 2 Pension Plan (PP2) 2,576 2,477
Other plans 87 76
Total 79,985 83,503
Current 3,679 8,049
Non-current 76,306 75,454
Total 79,985 83,503

(*) Includes obligation with contribution related to the revision of the lump sum death benefit.

 

 

29 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

The movement of obligations with pension and health plans with defined benefit characteristics is shown below:

  Pension plans Health Care

Other

plans

 
  PPSP-R (*) PPSP-NR (*) PP2  AMS   Total
Changes in the net actuarial liability            
Balance as of January 1, 39,102 14,012 2,477 27,836 76 83,503
Recognized in the Statement of Income 675 239 99 712 1 1,726
Costs incurred in the period 12 53 224 289
Service cost 611 223 46 488 1 1,369
Interest on the obligations with contribution for the revision of the lump sum death benefit 52 16 68
Recognized in Equity - other comprehensive income
Cash effects (2,777) (2,166) (310) (5,253)
Contributions paid (282) (86) (310) (678)
Payments of obligations with contribution for the revision of the lump sum death benefit (63) (19) (82)
Payments related to Term of financial commitment (TFC) (2,432) (2,061) (4,493)
Other changes (1) 10 9
Others (1) 10 9
Balance of actuarial liability as of March 31, 2021 37,000 12,085 2,576 28,237 87 79,985
Balance of actuarial liability 35,312 11,581 2,576 28,237 87 77,793
Obligations with contribution for the revision of the lump sum death benefit 1,688 504 2,192
Total obligation with pension and medical benefits as of March 31,2021 37,000 12,085 2,576 28,237 87 79,985
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.

 

 

  Pension plans Health Care

Other

plans

 
  PPSP-R (*) PPSP-NR (*) PP2  AMS   Total
Changes in the net actuarial liability            
Balance as of January 1, 41,239 13,154 3,987 48,312 98 106,790
Recognized in the Statement of Income 454 206 571 (8,461) 14 (7,216)
Costs incurred in the period (1,606) (477) 280 (11,882) 1 (13,684)
Service cost 2,060 683 291 3,421 13 6,468
Recognized in Equity - other comprehensive income (1,833) 1,519 (2,081) (10,417) (41) (12,853)
Remeasurement effects recognized in other comprehensive income (1,833) 1,519 (2,081) (10,417) (41) (12,853)
Cash effects (2,457) (1,374) (1,598) (4) (5,433)
Contributions paid (1,324) (416) (1,598) (4) (3,342)
Payments related to Term of financial commitment (TFC) (1,133) (958) (2,091)
Other changes 9 9
Others 9 9
Total obligation with pension and medical benefits as of December 31 2020 37,403 13,505 2,477 27,836 76 81,297
Obligations with contribution for the revision of the lump sum death benefit 1,699 507 2,206
Total obligation with pension and medical benefits as of December 31 2020 39,102 14,012 2,477 27,836 76 83,503
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.

 

 

The net expense for pension and health plans is as follows:

  Pension plans     Health care Plans      
  PPSP-R (*) PPSP-NR (*) PP2 AMS Other plans Jan-Mar/2021 Jan-Mar/2020
Present value of obligations (VPO) 623 223 99 712 1 1,658 2,159
Obligations with contribution for the revision of the lump sum death benefit 52 16 68
Net costs for Jan-Mar/2021 675 239 99 712 1 1,726 2,159
Related to active employees 72 13 80 371 1 537 832
Related to retired employees 603 226 19 341 1,189 1,327
Net costs for Jan-Mar/2021 675 239 99 712 1 1,726 2,159
(*) It includes the balance of PPSP-R pre-70 and PPSP-NR pre-70.
 

 

13.1 Pension plans

Net liabilities with Pension Plans have been calculated annually by an independent actuary and are already recognized in Petrobras' financial statements for 2020, in accordance with the technical pronouncements issued by the Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis - CPC), approved by the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM), whose scope has its own recognition methodology different from those applicable to pension funds.

On March 29, 2021, the Deliberative Council of Petros approved the financial statements of the PPSP-R and PPSP-NR plans, ending the fiscal year 2020 with a surplus, reversing the scenario of successive deficits in the two largest defined benefit plans managed by the Foundation.

The main differences in accounting practices adopted in Brazil (CNPC and CVM), between the Pension Fund and the Sponsor to calculate the actuarial commitment, are shown below:

30 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

 

   
    2020
  PPSP-R PPSP-NR
Accumulated surplus registered by Petros (968) (536)
Financial assumptions 19,090 5,830
Ordinary and extraordinary sponsor contributions 13,798 3,981
Changes in fair value of plan assets (*) 10,744 4,778
Others (including Actuarial valuation method) (5,261) (548)
Net actuarial liability registered by the Company 37,403 13,505
(*) Includes balance of accounts receivable resulting from the Financial Commitment Term - TCF signed with Petrobras, and which Petros recognizes as equity.
 
13.1.1 Petros Plan 2 (PP2)

The Petros 2 Plan has a defined contribution portion whose payments are recognized in the income statement. In the period from January to March 2021, the Company's contribution to the defined contribution portion of the Petros 2 Plan was R$ 217 (R$ 224, for the period from January to March 2020).

13.1.2 Petros Plan 3 (PP3)

On October 1, 2020, the Board of Directors approved the submission of the PP3 for analysis by the Secretaria de Coordenação e Governança das Empresas Estatais (SEST) and to the Superintendência Nacional de Previdência Complementar (PREVIC), after adjustments to the Plan's regulations.

PP3 will be a social security option, in the defined contribution modality (CD), for voluntary and exclusive migration to participants and beneficiaries of the PPSP-R and PPSP-NR plans, both post-70.

On January 27, 2021, PREVIC and SEST approved the creation of PP3. The deadline for enrolling in the plan ended on April 30, 2021 and after the registration validation process and success in completing the technical and administrative feasibility study, the company will carry out an actuarial review of the original plans. PP3 is expected to start operating in the second half of 2021.

13.2Health Care Plan (AMS)

In 2020, Petrobras' Board of Directors approved a new management model for Multidisciplinary Health Care (AMS). As from April 1st, 2021, the health care plan management started to be carried out by a non-profit civil association, named as Petrobras Health Association (APS), maintaining the self-management modality. The new model is in accordance with the requirements of the Agência Nacional de Saúde Suplementar (ANS).

With the transfer to the new management model, there was no change in benefit, coverage or scope, as well as accounting effects.

14Provisions for legal proceedings
14.1 Provisions for legal proceedings, judicial deposits and contingent liabilities

The Company recognizes provisions based on the best estimate of the costs of proceedings for which it is probable that an outflow of resources embodying economic benefits will be required and that can be reliably estimated. These proceedings mainly include:

·Labor claims, in particular: (i) opt-out claims related to a review of the methodology by which the minimum compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated; and (ii) actions of outsourced employees;
·Tax claims including: (i) claims relating to Brazilian federal tax credits applied that were disallowed; (ii) alleged misappropriation of VAT (ICMS) tax credits; and (iii) fines for non-compliance with accessory tax obligations;
·Civil claims, in particular: (i) lawsuits related to contracts; (ii) royalties and special participation charges, including royalties over shale extraction; and (iii) penalties applied by ANP relating to measurement systems.
·Environmental claims, specially: (i) compensation and fines relating to an environmental accident in the State of Paraná in 2000; and (ii) fines relating to the Company’s offshore operation.

Provisions for legal proceedings are set out as follows:

31 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

 

  Consolidated
Current and Non-current liabilities 03.31.2021 12.31.2020
Labor claims 3,670 3,667
Tax claims 1,768 2,538
Civil claims 3,413 3,706
Environmental claims 1,483 1,516
Total 10,334 11,427

 

  Consolidated
  03.31.2021 12.31.2020
Opening Balance 11,427 12,546
Additions, net of reversals (454) 2,494
Use of provision (636) (3,814)
Accruals and charges (67) 104
Others 64 97
Closing balance 10,334 11,427
 

 

 

In preparing its consolidated financial statements for the three-month period ended March 31, 2021, the Company considered all available information concerning legal proceedings in which the Company is a defendant, in order to estimate the amounts of obligations and probability that outflows of resources will be required.

In the period from January to March 2021, the reduction in liabilities is mainly due to changes in the following cases: (i) a reduction of R$ 729 due to the revision of tax contingencies in the scope of the amnesty program in the state of Rio de Janeiro (see note 11.2); and (ii) a reduction of R$ 371 due to an agreement made in engineering contract arbitration on platforms resulting from subsidiaries abroad.

14.2Judicial deposits

Judicial deposits made in connection with legal proceedings are set out in the table below according to the nature of the corresponding lawsuits:

  Consolidated
Non-current assets 03.31.2021 12.31.2020
Tax 28,153 26,785
Labor 4,391 4,317
Civil 5,254 5,688
Environmental 584 588
Others 499 460
Total 38,881 37,838
 

 

 

  Consolidated
  03.31.2021 12.31.2020
Opening Balance 37,838 33,198
Additions 904 4,672
Use (66) (441)
Accruals and charges 166 431
Others 39 (22)
Closing balance 38,881 37,838

In the period from January to March 2021, the company made judicial deposits in the amount of R$ 904, including: (i) R$ 474 referring to corporate income taxes for not adding the income of subsidiaries and affiliates domiciled abroad to the tax calculation base of the Parent Company; (ii) R$ 290 referring to the unification of fields (Cernambi, Tupi, Tartaruga Verde and Tartaruga Mestiça); (iii) R$ 280 referring to the chartering of platforms due to the legal dispute related to the incidence of withholding income tax; (iv) R$ 263 referring to corporate income taxes in the deduction of Petros' expenses; and (v) R$ 172 referring to several tax deposits in court, mainly offset by: (vi) R$ 722 referring to the redemption of the deposit of IPI credits used to offset debts with the Federal Revenue of Brazil.

14.3Contingent liabilities

The estimates of contingent liabilities for legal proceedings are indexed to inflation and updated by applicable interest rates. As of March 31, 2021, estimated contingent liabilities for which the possibility of loss is not considered remote are set out in the following table:

  Consolidated
Nature 03.31.2021 12.31.2020
Tax 128,637 127,375
Labor 37,859 42,505
Civil – General 26,850 24,012
Civil – Environmental 7,900 7,613
Total 201,246 201,505
 

 

 

The main contingent liabilities are:

32 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

·Tax matters comprising: i) withholding income tax (IRRF), Contribution of Intervention in the Economic Domain (CIDE), Social Integration Program (PIS) and Contribution to Social Security Financing (COFINS) on remittances for payments of vessel charters; (ii) income from foreign subsidiaries and associates located outside Brazil not included in the computation of taxable income (IRPJ and CSLL); (iii) tax on services provided offshore (ISS); (iv) requests to compensate federal taxes disallowed by the Brazilian Federal Tax Authority; (v) collection and crediting of ICMS VAT tax by several states; and (vi) collection of social security contributions over payments of bonuses.
·Labor matters comprising mainly actions requiring a review of the methodology by which the minimum compensation based on an employee's position and work schedule (Remuneração Mínima por Nível e Regime - RMNR) is calculated;
·Civil matters comprising mainly: (i) litigations regarding Sete Brasil Participações S.A.; (ii) administrative proceedings challenging an ANP order requiring Petrobras to pay additional special participation fees and royalties (production taxes) with respect to several fields; (iii) a public civil action that discusses the alleged illegality of the gas supply made by the Company to its Nitrogen Fertilizer Production Unit; (iv) regulation agencies fines; and (v) lawsuits related to contracts.
·Environmental matters comprising indemnities for material and collective moral damages to the environment and environmental fines related to the Company operation.

In the period from January to March 2021, the reduction in liabilities arises mainly from the following events: (i) a R$ 4,644 reduction in collective labor lawsuits in which unions question the formula for calculating the RMNR Complement, based on the published minutes on the decision of the Supreme Federal Court in relation to the financial update indexes applied to labor debts. These effects were partially offset by: (ii) R$ 2,248 related to civil matters involving contractual issues; (iii) R$ 781 referring to actions involving collection of ICMS VAT Tax on inventory differences and on added value; (iv) R$ 476 of requests for offsetting federal taxes not approved by the Brazilian Tax Federal Revenue; and (v) R$ 290 referring to the collection of Service Municipal Tax (ISS) on services in maritime waters.

14.4Class action and related proceedings

Regarding the class action in the Netherlands, on January 29, 2020, the Rotterdam District Court (“Court”) determined that shareholders who understand Portuguese and / or who bought shares through intermediaries or other agents who understand that language, among other shareholders, are subject to the arbitration clause provided for in the Company's Bylaws, remaining out of the collective action proposed by the Stichting Petrobras Compensation Foundation (“Foundation”). The Court also considered the binding effect of the agreement signed to close the United States' Class action. In this way, the Foundation needs to demonstrate that it represents a sufficient number of investors to justify pursuing collective action in the Netherlands. The Foundation and the Company presented the oral arguments at a hearing held on January 26, 2021, which is pending judgment. For more information, see note 20.4.1 to the financial statements for the year ended December 31, 2020.

In relation to the arbitration in Argentina, described in item 20.4.3 of the financial statements for the year ended December 31, 2020, the Argentine Supreme Court has not yet judged the appeal filed by the Association.

As for the criminal actions in Argentina, described in item 20.5 of the financial statements for the year ended December 31, 2020, it should be noted that, in the context of the action related to the alleged fraudulent offer of securities, on September 14, 2020, the judge responsible accepted the company's defense of immunity from jurisdiction and decided that Petrobras cannot be sued in a criminal action before the Argentine Justice. The Association appealed against this decision, and the appeal is pending judgment. Regarding the action related to the alleged breach of the obligation to disclose “material fact”, on March 4, 2021, the Court decided that the competence to judge this criminal action should be transferred from the Criminal Economic Court No. 3 in the city of Buenos Aires for the Criminal Economic Court No. 2 in the same city.

14.5 Arbitrations in Brazil

In the period from January to March 2021, there were no events that changed the assessment and judgment of arbitration in Brazil.

For more information, see note 20.4.2 to the financial statements for the year ended December 31, 2020.

33 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

14.6Tax recoveries under dispute
14.6.1Deduction of VAT tax (ICMS) from the basis of calculation of PIS and COFINS

The Company filed complaints against Brazilian Federal Government challenging the constitutionality of the inclusion, from 2001 to 2020, of ICMS within the calculation basis of PIS and COFINS. The Company obtained a favorable and definitive court decision on this claim, recognizing that Petrobras had the right to offset the amounts unduly paid under PIS and COFINS, with this decision being final and the respective asset recognized in the year 2020, according to note 17 of Taxes of December 31, 2020.

The tax credit relates to the exclusion of the ICMS VAT Tax effectively collected when included in the basis of calculation of PIS and COFINS, as deliberated by the Federal Revenue of Brazil (COSIT Consultation Solution 13), as set out in note 11.1. In relation to the amounts corresponding to the difference between the criterion established in the regulation and the ICMS VAT Tax amount reported in the invoices, these were not recognized as tax credit, since it is still pending final decision of the STF.

15Provision for decommissioning costs
  Consolidated
  03.31.2021 12.31.2020
Opening balance 97,595 70,377
Adjustment to provision 26 29,309
Transfers related to liabilities held for sale (*) (1,125) (2,793)
Payments made (887) (2,293)
Interest accrued 989 2,925
Others 39 70
Total 96,637 97,595

 

 

(*) In the period from January to March 2021, it refers to transfers of R$ 595 related to Polo Peroá, in Espírito Santo, and R$ 530 related to Polo Miranga, in Bahia. In 2020, it mainly includes transfers of R$ 1,550 related to concessions in Bahia and R$ 1,054 related to concessions in Rio Grande do Norte, according to note 24 of December 31, 2020.

16The “Lava Jato (Car Wash) Operation” and its effects on the Company

The Company has monitored the progress of investigations under the “Lava Jato” Operation and, in the preparation of these unaudited interim consolidated financial statements for the period ended March 31, 2021, did not identify any additional information that would affect the adopted calculation methodology to write off, in the third quarter of 2014, amounts overpaid for the acquisition of property, plant and equipment. The Company will continue to monitor these investigations for additional information in order to assess their potential impact on the adjustment made.

In addition, the Company has fully cooperated with the Brazilian Federal Police (Polícia Federal), the Brazilian Public Prosecutor’s Office (Ministério Público Federal), the Federal Auditor’s Office (Tribunal de Contas da União – TCU) and the General Federal Inspector’s Office (Controladoria Geral da União) in the investigation of all crimes and irregularities.

In the period from January to March 2021, as a result of leniency agreements and collaboration and repatriation agreements, the reimbursement of R$ 790 was recognized. Considering the amount recognized in previous years, Petrobras has already recovered R$ 5,738 as a result of Lava Jato Operation. These funds were presented as other operating income.

16.1U.S. Commodity Futures Trading Commission - CFTC

On May 30, 2019, the U.S. Commodity Futures Trading Commission (“CFTC”) contacted Petrobras with an inquiry regarding trading activities related to the Lava Jato Operation. Petrobras reiterates that it continues to cooperate with the regulatory authorities, including the CFTC, regarding any inquiry.

16.2 Order of civil inquiry - Brazilian Public Prosecutor’s Office

On December 15, 2015, the State of São Paulo Public Prosecutor’s Office issued the Order of Civil Inquiry 01/2015, establishing a civil proceeding to investigate the existence of potential damages caused by Petrobras to investors in the Brazilian stock market. The Brazilian Attorney General’s Office (Procuradoria Geral da República) assessed this civil proceeding and determined that the São Paulo Public Prosecutor’s Office has no authority over this matter, which must be presided over by the Brazilian Public Prosecutor’s Office. The Company has provided all relevant information requested by the authorities.

34 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

17Property, plant and equipment
17.1By class of assets
  Consolidated Parent
 

Land, buildings

and

improvement

Equipment and other assets (*)

Assets under

construction (**)

Exploration and development costs (oil and gas producing properties) (***) Right-of-use assets Total Total
Balance at January 1,2020 17,938 283,673 88,480 164,845 87,013 641,949 662,816
Additions 1 23,819 14,825 1,883 22,671 63,199 174,429
Additions to / review of estimates of decommissioning costs 27,899 27,899 27,829
Capitalized borrowing costs 4,797 4,797 4,745
Write-offs               (26) (2,269) (2,266) (1,055) (6,588) (12,204) (81,011)
Transfers (1,485) 13,724 (15,342) 6,079 (119) 2,857 1,955
Transfers to assets held for sale (47) (1,055) 14 (3,956) (73) (5,117) (4,995)
Depreciation, amortization and depletion (719) (21,882) (19,650) (20,627) (62,878) (71,925)
Impairment recognition (68) (35,813) (13,997) (22,691) (1,645) (74,214) (66,603)
Impairment reversal 28,522 2,479 8,296 638 39,935 22,848
Cumulative  translation adjustment 218 16,221 1,265 308 1,199 19,211
Balance at December 31, 2020 15,812 304,940 80,255 161,958 82,469 645,434 670,088
Accumulated cost 28,322 557,080 143,142 316,486 123,578 1,168,608 1,120,987
Accumulated depreciation, amortization, depletion and impairment (12,510) (252,140) (62,887) (154,528) (41,109) (523,174) (450,899)
Balance at December 31, 2020 15,812 304,940 80,255 161,958 82,469 645,434 670,088
Additions 1 1,949 8,005 1 2,152 12,108 10,014
Additions to / review of estimates of decommissioning costs (7) (7)
Capitalized borrowing costs 1,151 1,151 1,141
Write-offs               (17) (511) (78) (21) (627) (623)
Transfers 1,498 (1,345) (6,397) 6,524 (5) 275 236
Transfers to assets held for sale (6,050) (606) (556) 14 (7,198) (7,216)
Depreciation, amortization and depletion (183) (5,405) (5,681) (5,410) (16,679) (18,009)
Impairment recognition (note 19) (643) (46) (689) (689)
Impairment reversal (note 19) 151 151
Cumulative  translation adjustment (3) 96 585 114 1 793
Balance at March 31, 2021 17,125 293,525 82,633 162,229 79,200 634,712 654,942
Accumulated cost 28,352 546,519 143,370 315,375 124,626 1,158,242 1,105,800
Accumulated depreciation, amortization, depletion and impairment (***) (11,227) (252,994) (60,737) (153,146) (45,426) (523,530) (450,858)
Balance at March 31, 2021 17,125 293,525 82,633 162,229 79,200 634,712 654,942
Weighted average useful life in years

40

(25 to 50)

(except land)

20

(3 to 31)

 

  Units of production method

8

(2 to 47)

 

(*) Composed of production platforms, refineries, thermoelectric plants, gas treatment units, pipelines and other operating, storage and production facilities, including subsea production equipment and flow of oil and gas depreciated by the method of the units produced.

(**) Balances by business segment are presented in note 24.

(***) Composed of exploration and production assets related to wells, abandonment of areas, signature bonuses associated with proven reserves and other expenses directly linked to exploration and production, except production platforms.

(****) In the case of assets under construction, it refers only to impairment losses.

 

 

 

The rights-of-use comprise the following underlying assets:

  Consolidated Parent Company
  Platforms Vessels Buildings and others Total Total
2020          
Accumulated cost 57,913 58,498 7,167 123,578 139,784
Accumulated depreciation, amortization, depletion and impairment (16,447) (21,251) (3,411) (41,109) (45,198)
Balance at December 31, 2020 41,466 37,247 3,756 82,469 94,586
2021          
Accumulated cost 59,315 57,734 7,577 124,626 140,840
Accumulated depreciation, amortization, depletion and impairment (17,920) (24,020) (3,486) (45,426) (49,989)
Balance at March 31, 2021 41,395 33,714 4,091 79,200 90,851
           
 
             

 

35 

NOTES TO THE FINANCIAL STATEMENTS

PETROBRAS

This interim financial information should be read together with the Company’s audited annual financial statements

(Expressed in millions of reais, unless otherwise indicated)

 

 

17.2Capitalization rate used to determine the amount of borrowing costs eligible for capitalization

The capitalization rate used to determine the amount of borrowing costs eligible for capitalization was the weighted average of the borrowing costs applicable to the borrowings that were outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. For the three-month period ended March 31, 2021, the capitalization rate was 5.55% p.a. (6.36% p.a. for the same period of 2020).

18Intangible assets
18.1By class of assets
  Consolidated Parent Company
  Rights and Concessions Software Goodwill Total Total
Balance at December 31, 2019 77,261 976 252 78,489 77,904
Addition 157 448 605 562