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____
This report on Form 6-K is incorporated by reference in the Registration
Statement on Form F-3 of Petróleo Brasileiro -- Petrobras (No. 333-163665).
Petróleo Brasileiro S.A. - Petrobras Financial Statements December 31, 2012 and 2011
(Free translation of the original report in Portuguese)
|
Petróleo Brasileiro S.A. - Petrobras
Contents
Report of Independent Registered Public Accounting Firm | 4 - 5 |
Statement of Financial Position | 6 |
Statement of Income | 7 |
Statement of Comprehensive Income | 8 |
Statement of Changes in Shareholders’ Equity | 9 |
Statement of Cash Flows | 10 - 11 |
Statement of Added Value | 12 |
Consolidated Segment Information | 13 - 16 |
Social Balance | 17 - 19 |
Notes to the Financial Statements | ||
1 | The Company and its operations | 20 |
2 | Basis of preparation of the financial statements | 20 |
3 | Basis of Consolidation | 23 |
4 | Summary of significant accounting policies | 24 |
5 | Cash and cash equivalents | 33 |
6 | Marketable securities | 34 |
7 | Trade receivables | 34 |
8 | Inventories | 35 |
9 | Mergers, split-offs and other information about investments | 36 |
10 | Investments | 37 |
11 | Property, plant and equipment | 41 |
12 | Intangible assets | 43 |
13 | Exploration for and evaluation of oil and gas reserves | 46 |
14 | Trade payables | 47 |
15 | Finance Debt | 48 |
16 | Leases | 52 |
17 | Related parties | 53 |
18 | Provision for decommissioning costs | 59 |
19 | Taxes | 59 |
20 | Employee benefits (Post-employment) | 62 |
21 | Profit sharing | 68 |
22 | Shareholders’ equity | 68 |
23 | Sales revenues | 72 |
24 | Other operating expenses, net | 72 |
25 | Expenses by nature | 73 |
26 | Net finance income (expense) | 73 |
27 | Provisions for legal proceedings, contingent liabilities and contingent assets | 74 |
28 | Natural Gas Purchase Commitments | 79 |
29 | Guarantees for concession agreements for petroleum exploration | 79 |
30 | Risk management and derivative instruments | 79 |
31 | Fair value of financial assets and liabilities | 88 |
32 | Insurance | 89 |
33 | Subsequent Events | 89 |
Information on reserves (unaudited) | 90 |
2
Independent auditor's report
To the Board of Directors and Shareholders
Petróleo Brasileiro S.A. - Petrobras
We have audited the accompanying financial statements of Petróleo Brasileiro S.A. Petrobras ("Company" or "Petrobras"), which comprise the balance sheet as at December 31, 2012 and the statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
We have also audited the accompanying consolidated financial statements of Petróleo Brasileiro S.A. - Petrobras and its subsidiaries ("Consolidated"), which comprise the consolidated balance sheet as at December 31, 2012 and the consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's responsibility
for the financial statements
Management is responsible for the preparation and fair presentation of the parent company financial statements in accordance with accounting practices adopted in Brazil, and for the consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and accounting practices adopted in Brazil, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Brazilian and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
3
In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion on the parent company
financial statements
In our opinion, the parent company financial statements referred to above present fairly, in all material respects, the financial position of Petróleo Brasileiro S.A. - Petrobras as at December 31, 2012, and its financial performance and its cash flows for the year then ended, in accordance with accounting practices adopted in Brazil.
Opinion on the consolidated
financial statements
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Petróleo Brasileiro S.A. - Petrobras and its subsidiaries as at December 31, 2012, and their financial performance and their cash flows for the year then ended, in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and accounting practices adopted in Brazil.
Emphasis of matter
As discussed in note 2 to these financial statements, the parent company financial statements have been prepared in accordance with accounting practices adopted in Brazil. In the case of Petróleo Brasileiro S.A. - Petrobras, these practices differ from IFRS applicable to separate financial statements only in relation to the measurement of investments in subsidiaries, associates and jointly-controlled entities based on equity accounting, while IFRS requires measurement based on cost or fair value, and the maintenance of the balances of deferred charges existing as at December 31, 2008, which are being amortized. Our opinion is not qualified in respect of this matter.
Other matters
Audit of prior-year information
The financial statements of the Company for the year ended December 31, 2012, presented for comparison purposes, were audited by another firm of auditors whose report, dated February 9, 2012, expressed an unmodified opinion on those statements.
4
Statements of added value, business
segment reporting and social balance
We have also audited the parent company and consolidated statements of value added for the year ended December 31, 2012, the presentation of which is required by Brazilian Corporation Law for public companies, the consolidated statements of business segment reporting and the consolidated accounting information contained in the social balance, which are the responsibility of the Company's management, considered as supplementary information by IFRS, which does not require the presentation of the statements of value added and social balance. These statements were submitted to the same audit procedures described above and, in our opinion, are fairly presented, in all material respects, in relation to the financial statements taken as a whole.
Rio de Janeiro, February 4, 2013
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5 "F" RJ
/s/
Marcos Donizete Panassol
Contador CRC 1SP155975/O-8 "S" RJ
5
Petróleo Brasileiro S.A. - Petrobras
Statement of financial position
December 31, 2012 and 2011
(In millions of reais)
|
|
|
Consolidated |
|
Parent Company |
|
|
|
|
Consolidated |
|
Parent Company | ||||||||
Assets |
Note |
|
2012 |
|
2011 |
|
2012 |
|
2012 |
|
Liabilities |
Note |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
5 |
27,628 |
|
35,747 |
17,393 |
|
18,858 |
|
Trade payables |
14 |
|
24,775 |
|
22,252 |
|
26,918 |
|
22,601 | ||
Marketable securities |
6 |
21,316 |
|
16,808 |
|
23,379 |
|
23,625 |
|
Current debt |
15 |
|
15,283 |
|
18,884 |
|
15,519 |
|
12,252 | |
Trade and other receivables, net |
7.1 |
22,681 |
|
22,053 |
|
17,374 |
|
21,068 |
|
Current portion of finance lease obligations |
16.1 |
|
37 |
|
82 |
|
1,741 |
|
1,922 | |
Inventories |
8 |
|
29,736 |
|
28,447 |
|
24,908 |
|
22,434 |
|
Taxes payable |
19.1 |
|
12,522 |
|
10,969 |
|
10,518 |
|
9,258 |
Recoverable taxes |
19.1 |
|
11,387 |
|
12,846 |
|
8,836 |
|
9,372 |
|
Dividends payable |
22.5 |
|
6,154 |
|
3,878 |
|
6,154 |
|
3,878 |
Advances to suppliers |
|
|
1,895 |
|
1,389 |
|
1,682 |
|
1,040 |
|
Employee short-term benefits (compensation, profit sharing, charges) |
4,420 |
|
4,742 |
|
3,801 |
|
4,015 | ||
Others |
|
|
3,459 |
|
3,874 |
|
2,631 |
|
1,647 |
|
Pension and medical benefits |
20 |
|
1,610 |
|
1,427 |
|
1,518 |
|
1,341 |
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
4,819 |
|
5,978 |
|
1,831 |
|
1,669 |
|
|
|
118,102 |
|
121,164 |
|
96,203 |
|
98,044 |
|
|
|
|
69,620 |
|
68,212 |
|
68,000 |
|
56,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
Long-term receivables |
|
|
|
|
|
|
|
|
|
|
Non-current debt |
15 |
|
180,818 |
|
136,405 |
|
70,271 |
|
43,055 |
Trade and other receivables, net |
7.1 |
|
9,075 |
|
6,103 |
|
8,646 |
|
12,843 |
|
Finance lease obligations |
16.1 |
|
176 |
|
183 |
|
6,021 |
|
7,422 |
Marketable securities |
6 |
|
359 |
|
5,747 |
|
288 |
|
5,219 |
|
Deferred taxes |
19.2 |
|
39,262 |
|
33,230 |
|
35,184 |
|
29,408 |
Judicial deposits |
27.2 |
|
5,510 |
|
3,902 |
|
4,676 |
|
3,410 |
|
Pension and medical benefits |
20 |
|
18,953 |
|
16,653 |
|
17,638 |
|
15,352 |
Deferred taxes |
19.2 |
|
11,293 |
|
8,042 |
|
6,664 |
|
3,171 |
|
Provisions for legal proceedings |
27 |
|
2,585 |
|
2,041 |
|
1,504 |
|
1,015 |
Other Tax assets |
19.1 |
|
10,673 |
|
9,214 |
|
7,449 |
|
6,334 |
|
Provision for decommissioning costs |
18 |
|
19,292 |
|
8,839 |
|
18,391 |
|
8,241 |
Advances to suppliers |
|
|
6,449 |
|
5,892 |
|
2,061 |
|
1,011 |
|
Others |
|
|
1,577 |
|
2,310 |
|
4,504 |
|
3,123 |
Others |
|
|
3,855 |
|
3,234 |
|
3,186 |
|
2,322 |
|
|
|
|
262,663 |
|
199,661 |
|
153,513 |
|
107,616 |
|
|
|
47,214 |
|
42,134 |
|
32,970 |
|
34,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
22 |
|
|
|
|
|
|
|
|
Investments |
10 |
|
12,477 |
|
12,248 |
|
78,488 |
|
57,239 |
|
Share capital |
|
|
205,392 |
|
205,380 |
|
205,392 |
|
205,380 |
Property, plant and equipment |
11 |
|
418,716 |
|
343,117 |
|
279,824 |
|
227,479 |
|
Additional paid in capital |
|
|
631 |
|
563 |
|
939 |
|
859 |
Intangible assets |
12 |
|
81,207 |
|
81,434 |
|
77,349 |
|
77,709 |
|
Profit reserves |
|
|
134,928 |
|
122,623 |
|
134,981 |
|
122,963 |
Deferred Assets |
|
|
- |
|
- |
|
119 |
|
246 |
|
Accumulated other comprehensive income (loss) |
|
|
2,128 |
|
1,273 |
|
2,128 |
|
1,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
343,079 |
|
329,839 |
|
343,440 |
|
330,475 |
|
|
|
559,614 |
|
478,933 |
|
468,750 |
|
396,983 |
|
Non-controlling interests |
|
|
2,354 |
|
2,385 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
345,433 |
|
332,224 |
|
343,440 |
|
330,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
677,716 |
|
600,097 |
|
564,953 |
|
495,027 |
|
Total liabilities and shareholder's equity |
|
|
677,716 |
|
600,097 |
|
564,953 |
|
495,027 |
See the accompanying notes to the financial statements.
6
Petróleo Brasileiro S.A. - Petrobras
Income Statement
December 31, 2012 and 2011
(In millions of reais, except earnings per share)
|
|
Consolidated |
|
Parent Company | ||||
|
Note |
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
Sales revenues |
23 |
281,379 |
|
244,176 |
|
217,346 |
|
183,821 |
Cost of sales |
|
(210,472) |
|
(166,939) |
|
(167,882) |
|
(124,320) |
Gross profit |
|
70,907 |
|
77,237 |
|
49,464 |
|
59,501 |
|
|
|
|
|
|
|
|
|
Income (expenses) |
|
|
|
|
|
|
|
|
Selling expenses |
|
(9,604) |
|
(8,950) |
|
(11,819) |
|
(9,915) |
General and administrative expenses |
|
(9,842) |
|
(8,647) |
|
(6,843) |
|
(6,029) |
Exploration costs |
|
(7,871) |
|
(4,428) |
|
(7,131) |
|
(3,674) |
Research and development expenses |
|
(2,238) |
|
(2,444) |
|
(2,217) |
|
(2,361) |
Other taxes |
|
(760) |
|
(777) |
|
(338) |
|
(278) |
Other operating expenses, net |
24 |
(8,195) |
|
(6,588) |
|
(7,245) |
|
(5,770) |
|
|
(38,510) |
|
(31,834) |
|
(35,593) |
|
(28,027) |
|
|
|
|
|
|
|
|
|
Net income before financial results, profit sharing and income taxes |
32,397 |
|
45,403 |
|
13,871 |
|
31,474 | |
|
|
|
|
|
|
|
|
|
Financial income (expenses), net |
26 |
(3,723) |
|
122 |
|
1,689 |
|
5,581 |
|
|
|
|
|
|
|
|
|
Share of profit of equity-accounted investments |
|
84 |
|
386 |
|
8,581 |
|
5,808 |
|
|
|
|
|
|
|
|
|
Profit sharing |
21 |
(1,005) |
|
(1,560) |
|
(815) |
|
(1,295) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income before income taxes |
|
27,753 |
|
44,351 |
|
23,326 |
|
41,568 |
|
|
|
|
|
|
|
|
|
Income tax and social contribution |
19.3 |
(6,794) |
|
(11,241) |
|
(2,431) |
|
(8,467) |
|
|
|
|
|
|
|
|
|
Net income |
|
20,959 |
|
33,110 |
|
20,895 |
|
33,101 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Petrobras |
|
21,182 |
|
33,313 |
|
20,895 |
|
33,101 |
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
(223) |
|
(203) |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
20,959 |
|
33,110 |
|
20,895 |
|
33,101 |
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share in R$ |
22.6 |
1.62 |
|
2.55 |
|
1.60 |
|
2.54 |
See the accompanying notes to the financial statements.
7
Petróleo Brasileiro S.A. - Petrobras
Statement of Comprehensive Income
December 31, 2012 and 2011
(In millions of reais)
|
|
Consolidated |
|
Parent Company | ||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
Net income |
|
20,959 |
|
33,110 |
|
20,895 |
|
33,101 |
Other comprehensive income |
|
|
|
|
|
|
|
|
Cummulative translation adjustments |
|
1,016 |
|
1,423 |
|
1,151 |
|
1,123 |
Deemed cost of associates |
|
11 |
|
10 |
|
11 |
|
10 |
Unrealized gains / (losses) on available-for-sale securities |
|
|
|
|
|
| ||
Recognized in shareholders' equity |
|
1,017 |
|
136 |
|
1,017 |
|
136 |
Reclassified to profit or loss |
|
(1,459) |
|
26 |
|
(1,459) |
|
26 |
Unrealized gains / (losses) on cash flow hedge |
|
|
|
|
|
|
| |
Recognized in shareholders' equity |
|
(5) |
|
(54) |
|
(5) |
|
(54) |
Reclassified to profit or loss |
|
14 |
|
8 |
|
14 |
|
8 |
Deferred income taxes |
|
148 |
|
(46) |
|
148 |
|
(46) |
|
|
742 |
|
1,503 |
|
877 |
|
1,203 |
Total comprehensive income (loss) |
|
21,701 |
|
34,613 |
|
21,772 |
|
34,304 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Shareholders of Petrobras |
|
22,059 |
|
34,516 |
|
21,772 |
|
34,304 |
Non-controlling interests |
|
(358) |
|
97 |
|
- |
|
- |
Total comprehensive income (loss) |
|
21,701 |
|
34,613 |
|
21,772 |
|
34,304 |
See the accompanying notes to the financial statements.
8
Petróleo Brasileiro S.A. - Petrobras
Statement of Changes in Shareholders’ Equity
December 31, 2012 and 2011
(In millions of reais)
|
|
Additional paid in capital |
Accumulated other comprehensive income |
Profit reserves |
|
|
|
| |||||||||||||||||||
|
Share Capital |
Incremental costs directly attributable to the issue of new shares |
Change in interest in subsidiaries |
Cumulative translation adjustment |
Other comprehensive income |
Legal |
Statutory |
Tax incentives |
Profit retention |
Retained earnings |
Total shareholders' equity attributable to shareholders of Petrobras (CPC) |
Deferred charges |
Non-controlling interests (IFRS) |
Total consolidated shareholders' equity (IFRS) | |||||||||||||
|
205,357 |
(477) |
471 |
(196) |
286 |
12,654 |
1,422 |
1,347 |
86,453 |
- |
307,317 |
(552) |
3,063 |
309,828 | |||||||||||||
Balance at January 1, 2011 |
205,357 |
|
(6) |
|
|
|
90 |
|
|
|
101,876 |
|
|
|
|
|
|
|
|
|
307,317 |
|
(552) |
|
3,063 |
|
309,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Capital increase with reserves |
23 |
- |
- |
- |
- |
- |
- |
(23) |
- |
- |
- |
- |
- |
- | |||||||||||||
Capital increase - issue of new shares |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||||
Cumulative translation adjustments |
- |
- |
- |
1,123 |
- |
- |
- |
- |
- |
- |
1,123 |
- |
300 |
1,423 | |||||||||||||
Unrealized gains / (losses) in available-for-sale securities and cash flow hedge |
- |
- |
- |
- |
70 |
- |
- |
- |
- |
- |
70 |
- |
- |
70 | |||||||||||||
Realization of deemed cost of associates |
- |
- |
- |
- |
(10) |
- |
- |
- |
- |
10 |
- |
- |
- |
- | |||||||||||||
Change in interest in subsidiaries |
- |
- |
865 |
- |
- |
- |
- |
- |
- |
- |
865 |
(296) |
(547) |
22 | |||||||||||||
Net income for the year |
- |
- |
- |
- |
- |
- |
- |
- |
- |
33,101 |
33,101 |
212 |
(203) |
33,110 | |||||||||||||
Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Allocation of net income |
- |
- |
- |
- |
- |
1,655 |
1,027 |
81 |
18,347 |
(21,110) |
- |
- |
- |
- | |||||||||||||
Dividends |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(12,001) |
(12,001) |
- |
(228) |
(12,229) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
|
205,380 |
(477) |
1,336 |
927 |
346 |
14,309 |
2,449 |
1,405 |
104,800 |
- |
330,475 |
(636) |
2,385 |
332,224 | |||||||||||||
Balance at December 31, 2011 |
205,380 |
|
859 |
|
1,273 |
|
122,963 |
|
330,475 |
|
(636) |
|
2,385 |
|
332,224 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Capital increase with reserves |
12 |
- |
- |
- |
- |
- |
- |
(12) |
- |
- |
- |
- |
- |
- | |||||||||||||
Capital increase - issue of new shares |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- | |||||||||||||
Cumulative translation adjustments |
- |
- |
- |
1,151 |
- |
- |
- |
- |
- |
- |
1,151 |
- |
(135) |
1,016 | |||||||||||||
Unrealized gains / (losses) in available-for-sale securities and cash flow hedge |
- |
- |
- |
- |
(285) |
- |
- |
- |
- |
- |
(285) |
- |
- |
(285) | |||||||||||||
Realization of deemed cost of associates |
- |
- |
- |
- |
(11) |
- |
- |
- |
- |
11 |
- |
- |
- |
- | |||||||||||||
Change in interest in subsidiaries |
- |
- |
80 |
- |
- |
- |
- |
- |
- |
- |
80 |
(12) |
551 |
619 | |||||||||||||
Net income for the year |
- |
- |
- |
- |
- |
- |
- |
- |
- |
20,895 |
20,895 |
287 |
(223) |
20,959 | |||||||||||||
Distributions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Allocation of net income |
- |
- |
- |
- |
- |
1,045 |
1,027 |
19 |
9,939 |
(12,030) |
- |
- |
- |
- | |||||||||||||
Dividends |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(8,876) |
(8,876) |
- |
(224) |
(9,100) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
|
205,392 |
(477) |
1,416 |
2,078 |
50 |
15,354 |
3,476 |
1,412 |
114,739 |
- |
343,440 |
(361) |
2,354 |
345,433 | |||||||||||||
Balance at December 31, 2012 |
205,392 |
|
939 |
|
2,128 |
|
134,981 |
|
343,440 |
|
(361) |
|
2,354 |
|
345,433 | ||||||||||||
See the accompanying notes to the financial statements.
9
Petróleo Brasileiro S.A. - Petrobras
Statement of Cash Flows
December 31, 2012 and 2011
(In millions of reais)
|
Consolidated |
|
|
|
Parent Company |
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Cash flows from Operating activities |
|
|
|
|
|
|
|
Net income attributable to the shareholders of Petrobras |
21,182 |
|
33,313 |
|
20,895 |
|
33,101 |
|
|
|
|
|
|
|
|
Adjustments for: |
|
|
|
|
|
|
|
Non-controlling interests |
(223) |
|
(203) |
|
- |
|
- |
Pension and medical benefits (actuarial expense) |
4,074 |
|
2,893 |
|
3,734 |
|
2,635 |
Share of profit of equity-accounted investments |
(84) |
|
(386) |
|
(8,581) |
|
(5,808) |
Depreciation, depletion and amortization |
21,766 |
|
17,739 |
|
15,738 |
|
12,902 |
Impairment |
1,747 |
|
1,824 |
|
491 |
|
744 |
Exploratory expenditures written off |
5,628 |
|
2,504 |
|
5,268 |
|
2,243 |
Gains / (Losses) on disposal of non-current assets |
80 |
|
885 |
|
113 |
|
195 |
Foreign Exchange variation, indexation and finance charges |
8,584 |
|
6,238 |
|
2,774 |
|
(231) |
Deferred income taxes, net |
4,256 |
|
6,157 |
|
4,465 |
|
7,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase / (Decrease) in assets |
|
|
|
|
|
|
|
Trade and other receivables, net |
(3,068) |
|
(3,848) |
|
4,480 |
|
(3,127) |
Inventories |
(3,560) |
|
(8,335) |
|
(2,900) |
|
(7,463) |
Other assets |
(4,051) |
|
(4,207) |
|
(6,059) |
|
(4,099) |
Increase / (Decrease) in liabilities |
|
|
|
|
|
|
|
Trade payables |
2,115 |
|
4,112 |
|
2,329 |
|
(701) |
Taxes payable |
(2,341) |
|
(3,405) |
|
(2,523) |
|
(791) |
Pension and medical benefits |
(1,443) |
|
(1,410) |
|
(1,345) |
|
(1,314) |
Other liabilities |
(517) |
|
2,451 |
|
245 |
|
(81) |
Net cash provided by / (used in) operating activities |
54,145 |
|
56,322 |
|
39,124 |
|
35,413 |
Cash flows from Investing activities |
|
|
|
|
|
|
|
Other investments in exploration and production of oil and gas |
|
|
|
|
|
|
|
Investments in exploration and production of oil and gas |
(41,933) |
|
(31,412) |
|
(33,747) |
|
(24,455) |
Investments in refining, transportation and marketing |
(26,932) |
|
(26,339) |
|
(34,266) |
|
(18,586) |
Investments in gas and power activities |
(3,884) |
|
(4,517) |
|
(2,960) |
|
(2,454) |
Investment in international activities |
(4,665) |
|
(3,966) |
|
(6) |
|
(11) |
Investments in distribution activities |
(1,213) |
|
(1,070) |
|
- |
|
- |
investments in biofuel activities |
(299) |
|
(504) |
|
(408) |
|
(711) |
Other investments |
(822) |
|
(2,316) |
|
(819) |
|
(2,193) |
Investments in marketable securities |
4,324 |
|
11,606 |
|
8,627 |
|
13,030 |
Dividends received |
485 |
|
680 |
|
3,200 |
|
2,434 |
Net cash provided by / (used in) in investing activities |
(74,939) |
|
(57,838) |
|
(60,379) |
|
(32,946) |
See the accompanying notes to the financial statements.
10
Petróleo Brasileiro S.A. - Petrobras
Statement of Cash Flows (continued)
December 31, 2012 and 2011
(In millions of reais)
Consolidated |
|
Parent Company | |||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Cash flows from Financing activities |
|
|
|
|
|
|
|
Acquisition of non-controlling interest |
520 |
|
46 |
|
- |
|
- |
Financing and loans, net |
|
|
|
|
|
|
|
Proceeds from long-term financing |
48,931 |
|
40,433 |
|
47,199 |
|
55,928 |
Repayment of principal |
(22,317) |
|
(14,523) |
|
(17,350) |
|
(39,525) |
Repayment of interest |
(9,298) |
|
(7,633) |
|
(3,293) |
|
(3,053) |
Assignment of receivables (FIDC NP) |
- |
|
- |
|
(579) |
|
(6,295) |
Dividends paid |
(6,187) |
|
(10,659) |
|
(6,187) |
|
(10,659) |
Net cash provided by / (used in) financing activities |
11,649 |
|
7,664 |
|
19,790 |
|
(3,604) |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
1,026 |
|
183 |
|
- |
|
- |
|
|
|
|
|
|
|
|
Net increase / (decrease) in cash and cash equivalents in the year |
(8,119) |
|
6,331 |
|
(1,465) |
|
(1,137) |
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the year |
35,747 |
|
29,416 |
|
18,858 |
|
19,995 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the year |
27,628 |
|
35,747 |
|
17,393 |
|
18,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
Parent Company |
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Additional information on cash flows: |
|
|
|
|
|
|
|
Amounts paid and received during the year |
|
|
|
|
|
|
|
Income tax and social contribution paid |
2,170 |
|
3,438 |
|
(24) |
|
(1,176) |
Withholding income tax paid for third-party |
3,905 |
|
3,963 |
|
(3,339) |
|
(3,389) |
|
6,075 |
|
7,401 |
|
(3,363) |
|
(4,565) |
|
|
|
|
|
|
|
|
Non-cash Transactions (Investing and Financing) |
|
|
|
|
|
|
|
Purchase of property, plant and equipment on credit |
371 |
|
17 |
|
- |
|
- |
Finance leases |
- |
|
35 |
|
- |
|
342 |
Provision for decommissioning costs - recognition |
10,719 |
|
2,532 |
|
10,481 |
|
2,382 |
See the accompanying notes to the financial statements.
11
Petróleo Brasileiro S.A. - Petrobras
Statement of Added Value
December 31, 2012 and 2011
(In millions of reais)
|
Consolidated |
|
Parent company |
| ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
Income |
|
|
|
|
|
|
|
|
Sales of products, services provided and other revenues |
353,066 |
|
312,841 |
|
282,551 |
|
245,793 |
|
Provision for impairment of trade receivables |
(76) |
|
22 |
|
(10) |
|
64 |
|
Revenues related to construction of assets for own use |
73,671 |
|
66,853 |
|
55,104 |
|
49,939 |
|
|
426,661 |
|
379,716 |
|
337,645 |
|
295,796 |
|
Inputs acquired from third parties |
- |
|
- |
|
- |
|
- |
|
Materials consumed |
(121,064) |
|
(95,484) |
|
(95,627) |
|
(68,529) |
|
Power, third-party services and other operating expenses |
(86,634) |
|
(70,145) |
|
(68,067) |
|
(54,506) |
|
Tax credits on inputs acquired from third parties |
(21,277) |
|
(21,292) |
|
(19,669) |
|
(16,283) |
|
Impairment |
(1,747) |
|
(1,824) |
|
(491) |
|
(744) |
|
|
(230,722) |
|
(188,745) |
|
(183,854) |
|
(140,062) |
|
|
- |
|
- |
|
- |
|
- |
|
Gross added value |
195,939 |
|
190,971 |
|
153,791 |
|
155,734 |
|
- |
|
- |
|
- |
|
- |
| |
Retentions |
- |
|
- |
|
- |
|
- |
|
Depreciation, depletion and amortization |
(21,766) |
|
(17,739) |
|
(15,738) |
|
(12,902) |
|
|
- |
|
- |
|
- |
|
- |
|
Net added value produced by the Company |
174,173 |
|
173,232 |
|
138,053 |
|
142,832 |
|
|
- |
|
- |
|
- |
|
- |
|
Transferred added value |
- |
|
- |
|
- |
|
- |
|
Share of profit of equity-accounted investments |
84 |
|
386 |
|
8,581 |
|
5,808 |
|
Finance income - including indexation and foreign exchange variation charges |
7,241 |
|
6,543 |
|
7,885 |
|
8,570 |
|
Rents, royalties and others |
291 |
|
920 |
|
703 |
|
728 |
|
|
7,616 |
|
7,849 |
|
17,169 |
|
15,106 |
|
|
|
|
|
|
|
|
|
|
Total added value to be distributed |
181,789 |
|
181,081 |
|
155,222 |
|
157,938 |
|
|
|
|
|
|
- |
|
|
|
Distribution of added value |
|
|
|
|
- |
|
|
|
|
|
|
|
|
- |
|
|
|
Personnel and officers |
|
|
|
|
- |
|
|
|
Direct compensation |
|
|
|
|
- |
|
|
|
Salaries |
15,616 |
9% |
13,513 |
7% |
11,725 |
8% |
10,213 |
6% |
Profit sharing |
1,005 |
1% |
1,560 |
1% |
815 |
1% |
1,295 |
1% |
|
16,621 |
|
15,073 |
|
12,540 |
|
11,508 |
|
Benefits |
|
|
|
|
|
|
|
|
Short-term benefits |
937 |
1% |
823 |
|
581 |
|
528 |
|
Pension plan |
2,480 |
1% |
1,526 |
1% |
2,315 |
1% |
1,395 |
1% |
Medical plan |
2,580 |
1% |
2,181 |
1% |
2,295 |
2% |
1,976 |
2% |
|
|
|
|
|
|
|
|
|
FGTS |
1,008 |
1% |
861 |
|
880 |
1% |
746 |
|
|
23,626 |
14% |
20,464 |
10% |
18,611 |
13% |
16,153 |
10% |
Taxes |
|
|
|
|
|
|
|
|
Federal* |
58,228 |
32% |
61,098 |
34% |
52,165 |
34% |
57,033 |
36% |
State |
39,508 |
22% |
36,358 |
20% |
24,699 |
15% |
22,367 |
14% |
Municipal |
217 |
|
186 |
|
94 |
|
79 |
|
Abroad* |
6,390 |
4% |
6,340 |
4% |
- |
|
- |
|
|
104,343 |
58% |
103,982 |
58% |
76,958 |
49% |
79,479 |
50% |
|
|
|
|
|
|
|
|
|
Financial institutions and suppliers |
|
|
|
|
|
|
|
|
Interest, and exchange and indexation charges |
18,394 |
10% |
13,781 |
8% |
11,575 |
7% |
8,813 |
6% |
Rental and affreightment expenses |
14,467 |
6% |
9,744 |
5% |
27,183 |
18% |
20,392 |
13% |
|
32,861 |
16% |
23,525 |
13% |
38,758 |
25% |
29,205 |
19% |
Shareholders |
|
|
|
|
|
|
|
|
Interest on capital |
8,876 |
5% |
10,436 |
6% |
8,876 |
6% |
10,436 |
7% |
Dividends |
- |
|
1,565 |
1% |
- |
|
1,565 |
1% |
Non-controlling interests |
(223) |
|
(203) |
|
- |
|
- |
|
Retained earnings |
12,306 |
7% |
21,312 |
12% |
12,019 |
7% |
21,100 |
13% |
|
20,959 |
12% |
33,110 |
19% |
20,895 |
13% |
33,101 |
21% |
|
|
|
|
|
|
|
|
|
Added value distributed |
181,789 |
100% |
181,081 |
100% |
155,222 |
100% |
157,938 |
100% |
See the accompanying notes to the financial statements.
12
Petróleo Brasileiro S.A. - Petrobras
Segment Information
December 31, 2012 and 2011
(In millions of reais)
|
|
2012 | ||||||||||||||||
|
|
Exploration |
|
Refining, |
|
Gas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and |
|
Transportation |
& |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Production |
|
& Marketing |
Power |
|
Biofuels |
|
Distribution |
|
International |
Corporate |
|
Eliminations |
Total | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenues |
|
145,573 |
|
227,643 |
|
23,209 |
|
895 |
|
79,601 |
|
34,985 |
|
- |
|
(230,527) |
|
281,379 |
Intersegments |
|
143,873 |
|
74,166 |
|
2,503 |
|
719 |
|
1,724 |
|
7,542 |
|
- |
|
(230,527) |
|
- |
Third parties |
|
1,700 |
|
153,477 |
|
20,706 |
|
176 |
|
77,877 |
|
27,443 |
|
- |
|
- |
|
281,379 |
Cost of sales |
|
(65,651) |
|
(253,895) |
|
(19,010) |
|
(945) |
|
(72,316) |
|
(27,499) |
|
- |
|
228,844 |
|
(210,472) |
Gross profit (loss) |
|
79,922 |
|
(26,252) |
|
4,199 |
|
(50) |
|
7,285 |
|
7,486 |
|
- |
|
(1,683) |
|
70,907 |
Expenses |
|
(10,708) |
|
(7,916) |
|
(2,108) |
|
(200) |
|
(4,489) |
|
(3,746) |
|
(9,641) |
|
298 |
|
(38,510) |
Selling, administrative and general expenses |
|
(963) |
|
(5,935) |
|
(1,896) |
|
(125) |
|
(4,373) |
|
(1,805) |
|
(4,647) |
|
298 |
|
(19,446) |
Exploration costs |
|
(7,114) |
|
- |
|
- |
|
- |
|
- |
|
(757) |
|
- |
|
- |
|
(7,871) |
Research and development expenses |
|
(1,057) |
|
(444) |
|
(74) |
|
(67) |
|
(5) |
|
(1) |
|
(590) |
|
- |
|
(2,238) |
Other taxes |
|
(103) |
|
(128) |
|
(116) |
|
(2) |
|
(24) |
|
(219) |
|
(168) |
|
- |
|
(760) |
Other operating expenses, net |
|
(1,471) |
|
(1,409) |
|
(22) |
|
(6) |
|
(87) |
|
(964) |
|
(4,236) |
|
- |
|
(8,195) |
Income before financial results, profit sharing and income taxes |
69,214 |
|
(34,168) |
|
2,091 |
|
(250) |
|
2,796 |
|
3,740 |
|
(9,641) |
|
(1,385) |
|
32,397 | |
Financial income (expenses), net |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(3,723) |
|
- |
|
(3,723) |
Share of profit of equity-accounted investments |
|
(3) |
|
(205) |
|
378 |
|
(52) |
|
2 |
|
(31) |
|
(5) |
|
- |
|
84 |
Profit sharing |
|
(342) |
|
(267) |
|
(38) |
|
(2) |
|
(83) |
|
(29) |
|
(244) |
|
0 |
|
(1,005) |
Income before income taxes |
|
68,869 |
|
(34,640) |
|
2,431 |
|
(304) |
|
2,715 |
|
3,680 |
|
(13,613) |
|
(1,385) |
|
27,753 |
Income tax and social contribution |
|
(23,417) |
|
11,709 |
|
(698) |
|
86 |
|
(922) |
|
(2,244) |
|
8,222 |
|
470 |
|
(6,794) |
Net income (loss) |
|
45,452 |
|
(22,931) |
|
1,733 |
|
(218) |
|
1,793 |
|
1,436 |
|
(5,391) |
|
(915) |
|
20,959 |
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Petrobras |
|
45,446 |
|
(22,931) |
|
1,638 |
|
(218) |
|
1,793 |
|
1,305 |
|
(4,936) |
|
(915) |
|
21,182 |
Non-controlling interests |
|
6 |
|
- |
|
95 |
|
- |
|
- |
|
131 |
|
(455) |
|
- |
|
(223) |
|
|
45,452 |
|
(22,931) |
|
1,733 |
|
(218) |
|
1,793 |
|
1,436 |
|
(5,391) |
|
(915) |
|
20,959 |
See the accompanying notes to the financial statements.
13
Petróleo Brasileiro S.A. - Petrobras
Segment Information
December 31, 2012 and 2011
(In millions of reais)
|
|
2012 | ||||||||||||||||
|
|
Exploration |
|
Refining, |
|
Gas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and |
|
Transportation |
& |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Production |
|
& Marketing |
Power |
|
Biofuels |
|
Distribution |
|
International |
Corporate |
|
Eliminations |
Total | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenues |
|
124,028 |
|
198,516 |
|
16,295 |
|
535 |
|
73,633 |
|
28,374 |
|
- |
|
(197,205) |
|
244,176 |
Intersegments |
|
123,165 |
|
63,833 |
|
2,182 |
|
482 |
|
1,223 |
|
6,320 |
|
- |
|
(197,205) |
|
- |
Third parties |
|
863 |
|
134,683 |
|
14,113 |
|
53 |
|
72,410 |
|
22,054 |
|
- |
|
- |
|
244,176 |
Cost of sales |
|
(55,118) |
|
(205,998) |
|
(9,550) |
|
(588) |
|
(67,630) |
|
(21,679) |
|
- |
|
193,624 |
|
(166,939) |
Gross profit (loss) |
|
68,910 |
|
(7,482) |
|
6,745 |
|
(53) |
|
6,003 |
|
6,695 |
|
- |
|
(3,581) |
|
77,237 |
Expenses |
|
(7,058) |
|
(7,026) |
|
(2,533) |
|
(222) |
|
(4,118) |
|
(3,169) |
|
(8,008) |
|
300 |
|
(31,834) |
Selling, administrative and general expenses |
|
(819) |
|
(5,536) |
|
(1,739) |
|
(111) |
|
(4,024) |
|
(1,554) |
|
(4,114) |
|
300 |
|
(17,597) |
Exploration costs |
|
(3,674) |
|
- |
|
- |
|
- |
|
- |
|
(754) |
|
- |
|
- |
|
(4,428) |
Research and development expenses |
|
(1,248) |
|
(470) |
|
(116) |
|
(50) |
|
(9) |
|
(1) |
|
(550) |
|
- |
|
(2,444) |
Other taxes |
|
(80) |
|
(90) |
|
(165) |
|
(1) |
|
(41) |
|
(192) |
|
(208) |
|
- |
|
(777) |
Other operating expenses, net |
|
(1,237) |
|
(930) |
|
(513) |
|
(60) |
|
(44) |
|
(668) |
|
(3,136) |
|
- |
|
(6,588) |
Income before financial results, profit sharing and income taxes |
61,852 |
|
(14,508) |
|
4,212 |
|
(275) |
|
1,885 |
|
3,526 |
|
(8,008) |
|
(3,281) |
|
45,403 | |
Financial income (expenses), net |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
122 |
|
- |
|
122 |
Share of profit of equity-accounted investments |
|
74 |
|
(165) |
|
398 |
|
26 |
|
9 |
|
40 |
|
4 |
|
- |
|
386 |
Profit sharing |
|
(488) |
|
(348) |
|
(61) |
|
(2) |
|
(118) |
|
(52) |
|
(491) |
|
- |
|
(1,560) |
Income before income taxes |
|
61,438 |
|
(15,021) |
|
4,549 |
|
(251) |
|
1,776 |
|
3,514 |
|
(8,373) |
|
(3,281) |
|
44,351 |
Income tax and social contribution |
|
(20,863) |
|
5,051 |
|
(1,411) |
|
94 |
|
(601) |
|
(1,547) |
|
6,920 |
|
1,116 |
|
(11,241) |
Net income (loss) |
|
40,575 |
|
(9,970) |
|
3,138 |
|
(157) |
|
1,175 |
|
1,967 |
|
(1,453) |
|
(2,165) |
|
33,110 |
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of Petrobras |
|
40,594 |
|
(9,955) |
|
3,109 |
|
(157) |
|
1,175 |
|
1,949 |
|
(1,237) |
|
(2,165) |
|
33,313 |
Non-controlling interests |
|
(19) |
|
(15) |
|
29 |
|
- |
|
- |
|
18 |
|
(216) |
|
- |
|
(203) |
|
|
40,575 |
|
(9,970) |
|
3,138 |
|
(157) |
|
1,175 |
|
1,967 |
|
(1,453) |
|
(2,165) |
|
33,110 |
See the accompanying notes to the financial statements.
14
Petróleo Brasileiro S.A. - Petrobras
Segment Information
December 31, 2012 and 2011
(In millions of reais)
|
|
|
Exploration |
|
Refining, |
|
Gas |
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
and |
|
Transportation |
|
& |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Production |
|
& Marketing |
|
Power |
|
Biofuels |
|
Distribution |
|
International |
|
Corporate |
|
Eliminations |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
13,415 |
|
41,610 |
|
7,377 |
|
239 |
|
6,490 |
|
7,186 |
|
55,956 |
|
(14,171) |
|
118,102 | |
Non-current assets |
|
296,784 |
|
145,285 |
|
50,768 |
|
2,311 |
|
10,125 |
|
31,098 |
|
23,994 |
|
(751) |
|
559,614 | |
|
Long-term receivables |
|
10,462 |
|
9,364 |
|
3,504 |
|
33 |
|
3,785 |
|
4,564 |
|
16,253 |
|
(751) |
|
47,214 |
|
Investments |
|
164 |
|
5,920 |
|
2,371 |
|
1,757 |
|
31 |
|
1,915 |
|
319 |
|
- |
|
12,477 |
|
Property, plant and equipment |
|
210,029 |
|
129,686 |
|
44,108 |
|
521 |
|
5,585 |
|
22,237 |
|
6,550 |
|
- |
|
418,716 |
|
Intangible assets |
|
76,129 |
|
315 |
|
785 |
|
- |
|
724 |
|
2,382 |
|
872 |
|
- |
|
81,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012 |
|
310,199 |
|
186,895 |
|
58,145 |
|
2,550 |
|
16,615 |
|
38,284 |
|
79,950 |
|
(14,922) |
|
677,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
10,537 |
|
41,203 |
|
4,707 |
|
239 |
|
7,956 |
|
8,272 |
|
61,886 |
|
(13,636) |
|
121,164 | |
Non-current assets |
|
254,164 |
|
116,982 |
|
47,150 |
|
2,180 |
|
6,936 |
|
28,167 |
|
23,984 |
|
(630) |
|
478,933 | |
|
Long-term receivables |
|
7,766 |
|
7,910 |
|
3,050 |
|
32 |
|
1,344 |
|
5,465 |
|
17,197 |
|
(630) |
|
42,134 |
|
Investments |
|
23 |
|
6,306 |
|
2,160 |
|
1,612 |
|
84 |
|
1,873 |
|
190 |
|
- |
|
12,248 |
|
Property, plant and equipment |
|
170,010 |
|
102,473 |
|
41,208 |
|
536 |
|
4,709 |
|
18,516 |
|
5,665 |
|
- |
|
343,117 |
|
Intangible assets |
|
76,365 |
|
293 |
|
732 |
|
- |
|
799 |
|
2,313 |
|
932 |
|
- |
|
81,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2011 |
|
264,701 |
|
158,185 |
|
51,857 |
|
2,419 |
|
14,892 |
|
36,439 |
|
85,870 |
|
(14,266) |
|
600,097 |
See the accompanying notes to the financial statements.
15
Petróleo Brasileiro S.A. - Petrobras
Segment Information
December 31, 2012 and 2011
(In millions of reais)
|
|
2012 | ||||||||||||
|
|
Exploration |
|
Refining, |
|
Gas |
|
|
|
|
|
|
|
|
Income statement |
|
and |
|
Transportation |
& |
|
|
|
|
|
|
|
| |
|
|
Production |
|
& Marketing |
|
Power |
|
Distribution |
|
Corporate |
|
Eliminations |
|
Total |
Sales revenues |
|
10,468 |
|
17,533 |
|
1,175 |
|
10,133 |
|
- |
|
(4,324) |
|
34,985 |
Intersegments |
|
7,472 |
|
4,290 |
|
73 |
|
31 |
|
- |
|
(4,324) |
|
7,542 |
Third parties |
|
2,996 |
|
13,243 |
|
1,102 |
|
10,102 |
|
- |
|
- |
|
27,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before financial results, profit sharing and income taxes |
4,702 |
|
(831) |
|
262 |
|
141 |
|
(567) |
|
33 |
|
3,740 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders of Petrobras |
|
2,509 |
|
(816) |
|
243 |
|
132 |
|
(796) |
|
33 |
|
1,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 | ||||||||||||
|
|
Exploration |
|
Refining, |
|
Gas |
|
|
|
|
|
|
|
|
Income statement |
|
and |
|
Transportation |
& |
|
|
|
|
|
|
|
| |
|
|
Production |
|
& Marketing |
|
Power |
|
Distribution |
|
Corporate |
|
Eliminations |
|
Total |
Sales revenues |
|
8,615 |
|
14,241 |
|
909 |
|
8,320 |
|
- |
|
(3,711) |
|
28,374 |
Intersegments |
|
6,373 |
|
3,585 |
|
39 |
|
45 |
|
- |
|
(3,722) |
|
6,320 |
Third parties |
|
2,242 |
|
10,656 |
|
870 |
|
8,275 |
|
- |
|
11 |
|
22,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before financial results, profit sharing and income taxes |
3,969 |
|
(226) |
|
190 |
|
120 |
|
(507) |
|
(20) |
|
3,526 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders of Petrobras |
|
2,217 |
|
(213) |
|
262 |
|
99 |
|
(396) |
|
(20) |
|
1,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration |
|
Refining, |
|
Gas |
|
|
|
|
|
|
|
|
|
|
and |
|
Transportation |
& |
|
|
|
|
|
|
| ||
|
|
Production |
|
& Marketing |
|
Power |
|
Distribution |
|
Corporate |
|
Eliminations |
|
Total |
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 12.31.2012 |
|
30,817 |
|
4,913 |
|
1,551 |
|
2,217 |
|
3,227 |
|
(4,441) |
|
38,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of 12.31.2011 |
|
27,358 |
|
6,365 |
|
1,742 |
|
1,889 |
|
3,412 |
|
(4,327) |
|
36,439 |
See the accompanying notes to the financial statements.
16
Petróleo Brasileiro S.A. - Petrobras
Social balance
December 31, 2012 and 2011
(In millions of reais)
|
|
Consolidated | ||||||||||
1 - Calculation basis |
|
2012 |
|
2011 | ||||||||
Consolidated sales revenues (SR) |
|
|
|
|
|
281,379 |
|
|
|
|
|
244,176 |
Consolidated net income before profit sharing and taxes (OI) |
|
|
|
|
|
28,758 |
|
|
|
|
|
45,911 |
Consolidated gross payroll (GP) |
|
|
|
|
|
15,511 |
|
|
|
|
|
13,026 |
|
|
|
|
% of |
|
Amount |
|
% of | ||||
2 - Internal Social Indicators (i) |
|
Amount |
|
GP |
|
SR |
|
|
|
GP |
|
SR |
Meal and food |
|
890 |
|
5.74% |
|
0.32% |
|
845 |
|
6.49% |
|
0.35% |
Compulsory payroll charges |
|
7,707 |
|
49.69% |
|
2.74% |
|
6,477 |
|
49.72% |
|
2.65% |
Pension |
|
686 |
|
4.42% |
|
0.24% |
|
328 |
|
2.52% |
|
0.13% |
Health Care |
|
2,888 |
|
18.62% |
|
1.03% |
|
2,427 |
|
18.63% |
|
0.99% |
Health and Safety |
|
201 |
|
1.30% |
|
0.07% |
|
180 |
|
1.38% |
|
0.07% |
Education |
|
175 |
|
1.13% |
|
0.06% |
|
133 |
|
1.02% |
|
0.05% |
Culture |
|
10 |
|
0.06% |
|
0.00% |
|
11 |
|
0.08% |
|
0.00% |
Professional training and development |
|
501 |
|
3.23% |
|
0.18% |
|
418 |
|
3.21% |
|
0.17% |
Day-care assistance |
|
99 |
|
0.64% |
|
0.04% |
|
90 |
|
0.69% |
|
0.04% |
Profit sharing |
|
1,005 |
|
6.48% |
|
0.36% |
|
1,560 |
|
11.98% |
|
0.64% |
Other |
|
82 |
|
0.53% |
|
0.03% |
|
76 |
|
0.58% |
|
0.03% |
Total - Internal social indicators |
|
14,244 |
|
91.84% |
|
5.07% |
|
12,545 |
|
96.30% |
|
5.12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of |
|
Amount |
|
% of | ||||
3 - External Social Indicators (i) |
|
Amount |
|
OI |
|
SR |
|
|
|
OI |
|
SR |
Income and Work Opportunities Generated |
|
51 |
|
0.18% |
|
0.02% |
|
48 |
|
0.10% |
|
0.02% |
Education for Professional Skills |
|
61 |
|
0.21% |
|
0.02% |
|
57 |
|
0.12% |
|
0.02% |
Rights of Children and Adolescents Guarantee (I) |
|
60 |
|
0.21% |
|
0.02% |
|
70 |
|
0.15% |
|
0.03% |
Culture |
|
189 |
|
0.66% |
|
0.07% |
|
182 |
|
0.40% |
|
0.07% |
Sport |
|
61 |
|
0.21% |
|
0.02% |
|
80 |
|
0.17% |
|
0.03% |
Other |
|
29 |
|
0.10% |
|
0.01% |
|
33 |
|
0.07% |
|
0.01% |
Total contributions for the community |
|
451 |
|
1.57% |
|
0.16% |
|
470 |
|
1.02% |
|
0.19% |
Taxes (excluding payroll charges) |
|
100,087 |
|
348.03% |
|
35.57% |
|
97,826 |
|
213.08% |
|
40.06% |
Total - External social indicators |
|
100,538 |
|
349.60% |
|
35.89% |
|
98,296 |
|
214.10% |
|
40.26% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of |
|
Amount |
|
% of | ||||
4 - Environmental Indicators (i) |
|
Amount |
|
OI |
|
SR |
|
|
|
OI |
|
SR |
Investments related to the Company’s production/operation |
|
2,827 |
|
9.83% |
|
1.00% |
|
2,550 |
|
5.55% |
|
1.04% |
Investments in external programs and/or projects |
|
101 |
|
0.35% |
|
0.04% |
|
172 |
|
0.37% |
|
0.07% |
Total environmental investments |
|
2,928 |
|
10.18% |
|
1.04% |
|
2,722 |
|
5.93% |
|
1.11% |
With respect to establishing “annual goals” for minimizing wastage, input general consumption in production/operation and for increasing efficiency in the use of natural resources, the Company: |
( ) does not have goals |
( ) attains from 51% to 75% |
( ) does not have goals |
( ) attains from 51% to 75% | ||||||||
|
|
( ) attains from 0 to 50% |
(x) attains from 76 to 100% |
( ) attains from 0 to 50% |
(x) attains from 76 to 100% | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
17
Petróleo Brasileiro S.A. - Petrobras
Social balance
December 31, 2012 and 2011
(In millions of reais)
|
Consolidated | ||||||||||
5 - Indicators for the staff (i) |
2012 |
|
2011 | ||||||||
Nº of employees at the end of the period |
|
|
|
|
85,065 |
|
|
|
|
|
81,918 |
Nº of hirings during the period (II) |
|
|
|
|
4,017 |
|
|
|
|
|
3,447 |
Nº of contracted employees (outsourcing) |
|
|
|
|
360,372 |
|
|
|
|
|
328,133 |
Nº of student trainees |
|
|
|
|
1,852 |
|
|
|
|
|
1,825 |
Nº of employees older than 45 |
|
|
|
|
37,373 |
|
|
|
|
|
35,927 |
Nº of women that work in the Company |
|
|
|
|
14,536 |
|
|
|
|
|
13,860 |
% of leadership positions held by women |
|
|
|
|
15% |
|
|
|
|
|
14.40% |
Nº of Negroes that work in the Company (III) |
|
|
|
|
20,158 |
|
|
|
|
|
18,468 |
% of leadership positions held by Negroes (IV) |
|
|
|
|
25% |
|
|
|
|
|
24.90% |
Nº of handicapped workers (V) |
|
|
|
|
1,120 |
|
|
|
|
|
1,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 - Significant information with respect to the exercise of corporate citizenship (i) |
|
2012 |
|
|
|
|
Goals 2013 | ||||
Ratio between the Company’s highest and lowest compensation (VI) |
|
|
|
|
20.54 |
|
|
|
|
|
20.54 |
Total number of work accidents (VII) |
|
|
|
|
6,680 |
|
|
|
|
|
6,350 |
|
|
|
|
|
|
|
|
|
|
|
|
The social and environmental projects developed by the Company were defined by: |
( ) directors |
|
(X) directors and managers |
( ) all employees |
|
( ) directors |
|
(X) directors and managers |
( ) all employees | ||
The health and safety standards in the work environment were defined by: |
(X) directors and managers |
( ) all the employees |
( ) everyone + Cipa |
|
(X) directors and managers |
( ) all the employees |
( ) everyone + Cipa | ||||
With respect to union freedom, the right to collective bargaining and internal representation of the employees, the Company: |
( ) is not involved |
|
( ) follows ILO standards |
(X) encourages and follows ILO |
( ) will not be involved |
( ) will follow ILO standards |
(X) will encourage and follow ILO | ||||
The pension benefits include: |
( ) directors |
|
( ) directors and managers |
(X) all employees |
|
( ) directors |
|
( ) directors and managers |
(X) all employees | ||
Profit-sharing includes: |
( ) directors |
|
( ) directors and managers |
(X) all employees |
|
( ) directors |
|
( ) directors and managers |
(X) all employees | ||
In the selection of suppliers, the same ethical standards and standards of social and environmental responsibility adopted by the Company: |
( ) are not considered |
( ) are suggested |
(X) are required |
|
( ) will not be considered |
( ) will be suggested |
(X) will be required | ||||
With respect to the participation of employees in voluntary work programs, the Company: |
( ) is not involved |
|
( ) gives support |
(X) organizes and encourages |
( ) will not be involved |
( ) will give support |
(X) will organize and encourage | ||||
Total number of complaints and criticisms from |
in the Company |
|
in Procon |
|
in court |
|
in the Company |
in Procon |
|
in court | |
consumers: (VIII) |
16,752 |
|
10 |
|
32 |
|
8,300 |
|
- |
|
- |
% of claims and criticisms attended or resolved: (VIII) |
in the Company |
|
in Procon |
|
in court |
|
in the Company |
|
in Procon |
|
in court |
|
94.2% |
|
30% |
|
53% |
|
99% |
|
- |
|
- |
Total added value to be distributed (consolidated) - amount: |
In 2012: |
|
181,789 |
|
In 2011: |
|
181,081 | ||||
Distribution of added value |
58% government 14% employees 5% shareholders 16% third parties 7% retained |
58% government 10% employees 7% shareholders 13% third parties 12% retained | |||||||||
(i) Unaudited information
7 - Other information
1) The Company does not use child or slave labor, it is not involved in prostitution or sexual exploitation of children or adolescents and is not involved in corruption.
2) The Company values and respects diversity, both internally and externally.
I. It includes R$ 3.3 transferred to the Fund for Infancy and Adolescence (FIA).
II. Information for the Petrobras Group in Brazil, related to hiring through public selection processes.
III. Information related to the employees of the Parent Company, Petrobras Distribuidora, Transpetro and Liquigás who declared to be Negroes.
IV. Of the total leadership positions in the Parent Company held by employees who informed their color/race, 24.6% are held by people who declared to be Negroes.
18
Petróleo Brasileiro S.A. - Petrobras
Social balance
December 31, 2012 and 2011
(In millions of reais)
V. Information related to the Parent company, Petrobras Distribuidora and Transpetro, which correspond to 5.6% of the permanent staff in jobs where positions are reserved for disabled people.
VI. It includes the following companies: the Parent Company, Petrobras Distribuidora, Transpetro, Liquigás and Petrobras Biocombustível.
VII. The numbers for 2012 have increased, since from 2012 on the numbers include first-aid assistance and non-health dismissal accidents, as well as the health-dismissal accidents (that were previously reported).
VIII. The information on the Company includes the number of complaints and criticisms received by the Parent Company, Petrobras Distribuidora and Liquigás. The goals for 2013 do not include the estimates for the Customer Service Centers of Petrobras Distribuidora.
19
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
1 The Company and its operations
Petróleo Brasileiro S.A. - Petrobras is dedicated, directly or through its subsidiaries (referred to jointly as “Petrobras” or “the Company”) to prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks, as well as oil products, natural gas and other liquid hydrocarbons. In addition, Petrobras carries out energy related activities, such as research, development, production, transport, distribution and trading of all forms of energy, as well as any other correlated or similar activities. The Company’s head office is located in Rio de Janeiro – RJ, Brazil.
2 Basis of preparation of the financial statements
The financial statements include:
Consolidated financial statements
The consolidated financial statements have been prepared and are being presented in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in accordance with accounting practices adopted in Brazil.
Individual financial statements
- The individual financial statements have been prepared in accordance with accounting practices adopted in Brazil, observing the provisions contained in the Brazilian Corporation Law, and they incorporate the changes introduced through Law 11,638/07 and Law 11,941/09, complemented by the standards, interpretations and orientations of the Accounting Pronouncements Committee (CPC), approved by resolutions of the Federal Accounting Council (CFC) and by rules of the Brazilian Securities Commission (CVM).
- The standards, interpretations and orientations of the Accounting Pronouncements Committee (CPC), approved by resolutions of the Federal Accounting Council (CFC) and rules of the Brazilian Securities Commission (CVM) converge with the International Accounting Standards issued by the International Accounting Standard Board (IASB). Accordingly, the individual financial statements do not present differences with respect to the consolidated financial statements under IFRS, except for the maintenance of deferred assets, as established in CPC 43 (R1) approved by CVM deliberation 651/10. See note 3.1 for a reconciliation between the parent company’s shareholders’ equity and net income with the consolidated financial statements.
The financial statements have been prepared under the historical cost convention, as modified by certain non-current assets and liabilities and non-current financial instruments.
Certain amounts from prior periods have been reclassified for comparability purposes relatively to the current period presentation. These reclassifications did not affect the net income or the shareholders' equity of the Company.
The annual financial statements were approved and authorized for issue by the Company’s Board of Directors in a meeting held on February 4, 2013.
20
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
2.1 Business segment reporting
The information related to the operating segments (business areas) of the Company is prepared based on items directly attributable to each segment, as well as items that can be allocated to each segment on a reasonable basis.
The measurement of segment results includes transactions carried out with third parties and transactions between business areas which are charged at internal transfer prices defined between the areas using methods based on market parameters.
Information per business area are prepared and reported in accordance with the prevailing organizational structure, including the business areas set out below:
a) Exploration and Production: This segment covers the activities of exploration, development and production of crude oil, NGL (natural gas liquid) and natural gas in Brazil, for the purpose of supplying, primarily, our domestic refineries and also selling the crude oil surplus and oil products produced in the natural gas processing plants to the domestic and foreign markets. The exploration and production segment also operates through partnerships with other companies.
b) Refining, Transportation and Marketing: This segment covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, extraction and processing of shale, as well as holding interests in companies from the petrochemical sector in Brazil.
c) Gas and Power: This segment covers the activities of transportation and trading of natural gas produced in Brazil and imported natural gas, transportation and trading of LNG (liquid natural gas), generation and trading of electricity, as well as holding interests in transporters and distributors of natural gas and in thermoelectric power stations in Brazil, in addition to being responsible for the fertilizer business.
d) Biofuel: This segment covers the activities of production of biodiesel and its co-products, as well as the ethanol-related activities: equity investments, production and trading of ethanol, sugar and the surplus electric power generated from sugarcane bagasse.
e) Distribution: This segment includes mainly the activities of Petrobras Distribuidora, which operates through its own retail network and wholesale channels to sell oil products, ethanol and vehicle natural gas in Brazil.
f) International: This segment covers the activities of exploration and production of oil and gas, refining, transportation and marketing, gas and power, and distribution, carried out outside of Brazil in a number of countries in the Americas, Africa, Europe and Asia.
The corporate segment comprises the items that cannot be attributed to the other segments, notably those related to corporate financial management, corporate overhead and other expenses, including actuarial expenses related to the pension and medical benefits for retired employees and their dependents.
2.2 Statement of added value
The statements of added value present information related to the value added by the Company (wealth created) and how it has been distributed. These statements are presented as supplementary information under IFRS and were prepared in accordance with CPC 09 – Statement of Added Value approved by CVM deliberation 557/08.
21
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
2.3 Social balance
The Social Balance presents social and environmental indices, number of employees and related information, as well as relevant information with respect to the exercise of corporate citizenship. Some information was obtained through the Company’s subsidiary records and managerial information. Social balance is presented as additional information.
2.4 Functional currency
The functional currency of Petrobras (Parent Company) and all Brazilian subsidiaries is the Brazilian Real. The functional currency of certain subsidiaries and special purpose entities that operate in the international economic environment is the U.S. dollar and the functional currency of Petrobras Argentina is the Argentine Peso.
The income statements and statement of cash flows of non-Brazilian Real functional currency subsidiaries, jointly controlled entities and associates in stable economies are translated into Brazilian Real using the monthly average exchange rates prevailing during the year. Assets and liabilities are translated into Brazilian Real at the closing rate at the date of the financial statements and the equity items are translated using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured.
All exchange differences arising from the translation of the financial statements of non-Brazilian Real subsidiaries, jointly controlled entities and associates are recognized as cumulative translation adjustments (CTA) within accumulated other comprehensive income in the shareholders’ equity and transferred to profit or loss in the periods when the realization of the investments affects profit or loss.
2.5 Use of estimates and judgments
The preparation of the financial statements requires the use of estimates and assumptions for certain assets, liabilities and other transactions. These estimates include oil and gas reserves, pension and medical benefits liabilities, depreciation, depletion and amortization, decommissioning costs, provisions for legal proceedings, fair value of financial instruments, present value adjustments of trade receivables and payables from relevant transactions, and income tax and social contribution on net income (CSLL). Notwithstanding Management uses assumptions and judgments that are reviewed periodically, the actual results could differ from these estimates.
22
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
3 Basis of Consolidation
The consolidated financial statements include the financial information of Petrobras, its subsidiaries and special purpose entities. Accounting policies of subsidiaries and special purpose entities have been changed, where necessary, to ensure consistency with the policies adopted by the Company. The subsidiaries and special purpose entities set out in the table below are consolidated.
|
|
|
|
| ||
|
|
|
|
Equity capital - Subscribed, paid | ||
Subsidiaries |
|
Country |
|
2012 |
|
2011 |
Petrobras Distribuidora S.A. - BR and its subsidiaries |
|
Brazil |
|
100.00 |
|
100.00 |
Braspetro Oil Services Company - Brasoil and its subsidiaries (i) |
|
Cayman Islands |
|
100.00 |
|
100.00 |
Braspetro Oil Company - BOC and its subsidiaries (i) |
|
Cayman Islands |
|
100.00 |
|
100.00 |
Petrobras International Braspetro B.V. - PIBBV and its subsidiaries (i) (ii) |
|
Holland |
|
100.00 |
|
100.00 |
Petrobras Comercializadora de Energia Ltda. - PBEN (iii) |
|
Brazil |
|
100.00 |
|
100.00 |
Petrobras Negócios Eletrônicos S.A. – E-PETRO (iv) |
|
Brazil |
|
100.00 |
|
100.00 |
Petrobras Gás S.A. - Gaspetro and its subsidiaries |
|
Brazil |
|
99.99 |
|
99.99 |
Petrobras International Finance Company - PifCo and its subsidiaries (i) |
|
Cayman Islands |
|
100.00 |
|
100.00 |
Petrobras Transporte S.A. - Transpetro and its subsidiaries |
|
Brazil |
|
100.00 |
|
100.00 |
Downstream Participações Ltda. |
|
Brazil |
|
99.99 |
|
99.99 |
Petrobras Netherlands B.V. - PNBV and its subsidiaries (i) |
|
Holland |
|
100.00 |
|
100.00 |
5283 Participações Ltda. |
|
Brazil |
|
100.00 |
|
100.00 |
Fundo de Investimento Imobiliário RB Logística - FII |
|
Brazil |
|
99.00 |
|
99.00 |
Baixada Santista Energia S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Sociedade Fluminense de Energia Ltda. – SFE |
|
Brazil |
|
100.00 |
|
100.00 |
Termoceará Ltda. |
|
Brazil |
|
100.00 |
|
100.00 |
Termomacaé Ltda. |
|
Brazil |
|
100.00 |
|
100.00 |
Termomacaé Comercializadora de Energia Ltda. |
|
Brazil |
|
100.00 |
|
100.00 |
Termobahia S.A. |
|
Brazil |
|
98.85 |
|
98.85 |
Ibiritermo S. A. |
|
Brazil |
|
50.00 |
|
50.00 |
Petrobras Biocombustível S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Refinaria Abreu e Lima S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Companhia Locadora de Equipamentos Petrolíferos S.A. – CLEP |
|
Brazil |
|
100.00 |
|
100.00 |
Comperj Participações S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Comperj Estirênicos S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Comperj MEG S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Comperj Poliolefinas S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Cordoba Financial Services Gmbh - CFS and its subsidiary (i) |
|
Austria |
|
100.00 |
|
100.00 |
Breitener Energética S.A. and its subsidiaries |
|
Brazil |
|
93.66 |
|
65.00 |
Cayman Cabiunas Investiment CO. (i) |
|
Cayman Islands |
|
100.00 |
|
100.00 |
Innova S.A. |
|
Brazil |
|
100.00 |
|
100.00 |
Companhia de Desenvolvimento de Plantas Utilidades S.A. - CDPU (v) |
|
Brazil |
|
100.00 |
|
100.00 |
Companhia de Recuperação Secundária S.A. - CRSEC |
|
Brazil |
|
100.00 |
|
100.00 |
Petrobras Química S.A. - Petroquisa and its subsidiaries (vi) |
|
Brazil |
|
- |
|
100.00 |
Arembepe Energia S.A. (vii) |
|
Brazil |
|
100.00 |
|
30.00 |
Energética Camaçari Muricy S.A. (vii) |
|
Brazil |
|
71.60 |
|
49.00 |
Companhia Integrada Têxtil de Pernanbuco S.A. - CITEPE (viii) |
|
Brazil |
|
100.00 |
|
- |
Companhia Petroquímica de Pernanbuco S.A. - SUAPE (viii) |
|
Brazil |
|
100.00 |
|
- |
Petrobras Logística de Exploração e Produção S.A. - PB-LOG (viii) and (ix) |
|
Brazil |
|
100.00 |
|
- |
Liquigás S.A. (viii) |
|
Brazil |
|
100.00 |
|
- |
|
|
|
|
|
|
|
(i) Foreign-Incorporated Companies with non-Brazilian Real consolidated financial statements.
(ii) 11.87% interest of 5283 Participações Ltda.
(iii) 0.09% interest of Petrobras Gás S. A. - Gaspetro.
(iv) 0.05% interest of Downstream.
(v) 20% interest of Comperj Participações S.A.
(vi) Companies merged into Petróleo Brasileiro S.A.
(vii) Acquisition of control (Business combinations).
(viii) Direct subsidiaries as from 2012(indirect in 2011) resulting from ownership restructuring.
23
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Special purpose entities - SPE |
|
Country |
|
Main activity |
Charter Development LLC – CDC (i) |
|
USA |
|
Exploration and Production |
Companhia de Desenvolvimento e Modernização de Plantas Industriais – CDMPI |
|
Brazil |
|
Refining |
PDET Offshore S.A. |
|
Brazil |
|
Exploration and Production |
Nova Transportadora do Nordeste S.A. - NTN |
|
Brazil |
|
Logistics |
Nova Transportadora do Sudeste S.A. - NTS |
|
Brazil |
|
Logistics |
Fundo de Investimento em Direitos Creditórios Não-padronizados do Sistema Petrobras |
|
Brazil |
|
Corporate |
(i) Foreign-Incorporated Companies with non-Brazilian Real consolidated financial statements.
The consolidation procedures involve combining assets, liabilities, income and expenses, according to their nature and eliminating all intragroup balances and transactions, including unrealized profits arising from intragroup transactions.
3.1 Reconciliation between the parent company’s shareholders’ equity and net income with the consolidated financial
|
Shareholders' equity |
|
Net income | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Consolidated - IFRS |
345,433 |
|
332,224 |
|
20,959 |
|
33,110 |
Non-controlling interests |
(2,354) |
|
(2,385) |
|
223 |
|
203 |
Deferred expenses, net of income tax |
361 |
|
636 |
|
(287) |
|
(212) |
|
|
|
|
|
|
|
|
Parent company - CPC |
343,440 |
|
330,475 |
|
20,895 |
|
33,101 |
4 Summary of significant accounting policies
The accounting policies set out below have been consistently applied to all periods presented in these individual and consolidated financial statements.
4.1 Financial assets and liabilities
4.1.1 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.
4.1.2 Marketable securities
Marketable securities are classified on initial recognition based on the management’s business model for managing those securities as set out below:
- Trading securities - financial assets purchased and held for the purpose of resale in the short term and measured at fair value. Interest, inflation indexation charges and gains or losses arising from measurement at fair value are recognized in profit or loss;
24
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
- Held-to-maturity securities - financial assets for which management has the ability and intent to hold until maturity. Held-to-maturity securities are initially recognized at acquisition cost and are carried at amortized cost using the effective interest rate method. Interest and inflation indexation charges are recognized in profit or loss;
- Available-for-sale securities - non-derivative financial assets that are classified as available-for-sale or that are not classified in any other category. Available-for-sale securities are measured at fair value. Interest and inflation indexation charges are recognized in profit or loss; and gains or losses arising from measurement at fair value are recognized within other comprehensive income, in the shareholders’ equity and reclassified to profit or loss, in the periods when securities are sold.
4.1.3 Trade receivables
Trade receivables are initially measured at the fair value of the consideration to be received and, subsequently, at amortized cost using the effective interest rate method and adjusted for credit losses.
The Company recognizes a provision for impairment of trade receivables when there is evidence that some of its accounts receivable are uncollectible, due to insolvency, defaults or to a significant probability of a debtor filing for bankruptcy or bankruptcy protection.
4.1.4 Loans and financing (Debt)
Loans and financing are initially recognized at fair value less transaction costs incurred and, after initial recognition, are measured at amortized cost using the effective interest rate method.
4.1.5 Derivative financial instruments and hedge operations
Derivative financial instruments are recognized in the statement of financial position as assets or liabilities and are measured at fair value.
The gains or losses arising from measurement at fair value of derivative instruments, other than hedging relationships qualified for hedge accounting are recognized in profit or loss as a finance income (finance expense).
In hedging relationships which qualify for cash flow hedge accounting, gains or losses relating to the effective portion of the hedge are recognized within other comprehensive income, in the shareholders’ equity and reclassified to profit or loss in the periods when the hedged item affects profit or loss. The gains or losses relating to the ineffective portion are recognized in profit or loss.
4.2 Inventories
Inventories are determined by the weighted average cost method and comprise:
- Raw material - mainly comprises crude oil and is stated at the lower of the average cost of crude oil production and imports, and their net realizable value;
25
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
- Products - comprise oil products and biofuels, and are stated at the lower of the average refining or purchase costs and their net realizable value;
- Maintenance materials and supplies – comprise materials and supplies used in the operation of the Company and consumed, other than raw material, and are stated at the average purchase cost, not exceeding replacement cost.
Net realizable value is the estimated selling price of inventory in the ordinary course of business, less estimated cost of completion and estimated expenses to complete its sale.
Imports in transit are stated at the identified cost.
4.3 Investments in other companies
The Company accounts for its investments in jointly controlled entities and associates on which the Company has significant influence over the financial and operating policy decisions by applying the equity method of accounting. In the individual financial statements, the Parent Company also accounts for its investments in subsidiaries by applying the equity method of accounting.
4.4 Business combinations and goodwill
The Company determines on a case-by-case basis whether a transaction is a business combination or an asset acquisition. Combinations of entities under common control are not accounted for as business combinations.
Assets acquired and liabilities assumed on a business combination are accounted for by applying the acquisition method, based on which assets and liabilities are measured at their acquisition-date fair values.
The excess of the acquisition cost over the acquisition-date fair value of the net assets acquired (the net of the amounts of the identifiable assets acquired and the liabilities assumed) is recognized as goodwill in intangible assets. In the case of a bargain purchase, a gain is recognized in profit or loss when the acquisition cost is lower than the acquisition-date fair value of the net assets acquired.
Changes in ownership interest in subsidiaries that do not result in loss of control of the subsidiary are equity transactions. Any excess of the amounts paid/received over the carrying value of the ownership interest acquired/disposed is recognized in shareholders’ equity as an additional paid in capital.
Goodwill arising from investments in associates and jointly controlled entities without change of control is accounted for as part of these investments. It is measured by the excess of the consideration transferred over the Company’s interest in net assets’ fair value.
4.5 Oil and Gas exploration and development expenditures
The costs incurred in connection with the exploration, appraisal, development and production of oil and gas are accounted for using the successful efforts method of accounting, as set out below:
- Costs related to geological and geophysical activities are expensed when incurred.
- Amounts paid for obtaining concessions for exploration of oil and natural gas (capitalized acquisition costs) are initially capitalized.
26
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
- Costs directly associated with exploratory wells pending determination of proved reserves are capitalized within property, plant and equipment. Exploratory wells that have found oil and gas reserves, but those reserves cannot be classified as proved, continue to be capitalized if the well has found a sufficient quantity of reserves to justify its completion as a producing well and progress on assessing the reserves and the economic and operating viability of the project is under way. An internal commission of technical executives of Petrobras reviews these conditions monthly for each well, by analysis of geoscience and engineering data, existing economic conditions, operating methods and government regulations.
- Costs related to exploratory wells drilled in areas of unproved reserves are expensed when determined to be dry or non-economical (did not encounter potentially economic oil and gas quantities).
- Costs related to the construction, installation and completion of infrastructure facilities, such as platforms, pipelines, drilling of development wells and other related costs incurred in connection with the development of proved reserve areas and successful exploratory wells are capitalized within property, plant and equipment and depreciated from the commencement of production as described below.
4.6 Property, plant and equipment
Property, plant and equipment are measured at the cost to acquire or construct, including all costs necessary to bring the asset to working condition for its intended use, adjusted during hyperinflationary periods, as well as by the present value of the estimated cost of dismantling and removing the asset and restoring the site and reduced by accumulated depreciation and impairment losses.
Rights over tangible assets to be used in the normal course of business, arising from transactions which transfer substantially all the risks and rewards incidental to ownership of the asset (finance leases) are initially recognized at the lower of the fair value of the assets or the present value of the minimum payments of the contract. Capitalized lease assets are depreciated on a systematic basis consistent with the depreciation policy the Company adopts for property, plant and equipment that are owned. Where there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, capitalized lease assets are depreciated over the shorter of the lease term or the estimated useful life of the asset.
Expenditures on major maintenance of industrial units and vessels are capitalized if the recognition criteria are met. These comprise the cost of replacement assets or parts of assets, equipment assembly services, as well as other related costs. Such maintenance occurs, on average, every four years and the respective expenses are depreciated as production costs through the date of the beginning of the following stoppage.
Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the costs of these assets. Borrowing costs of funds borrowed generally are capitalized based on the Company’s weighted average of the cost of borrowings outstanding applied over the balance of assets under construction. Borrowing costs are amortized during the useful life or by applying the unit-of-production method to the related assets.
Depreciation, depletion and amortization of proved oil and gas producing properties are accounted for pursuant to the unit-of-production method applied to the depreciable amount of the asset as set out as follows: i) Depreciation (amortization) of oil and gas producing properties, including related equipment and facilities is computed based on a unit-of-production basis over the proved developed oil and gas reserves, applied on a field by field basis; ii) the straight-line method is used for other assets, such as assets with a useful life shorter than the life of the field or related to fields with different development stages. iii) Amortization of amounts paid for obtaining concessions for exploration of oil and natural gas of producing properties, such as signature bonus (capitalized acquisition costs) is recognized using the unit-of- production method, computed based on the units of production over the total proved oil and gas reserves, applied on a field by field basis.
27
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Estimates of reserves, prepared in manner consistent with U.S. Securities and Exchange Commission (SEC) definitions by the Company’s technicians, are reviewed at least annually and on interim basis if material changes occur (for depreciation, depletion and amortization purposes).
Except for land (which is not depreciated), other property, plant and equipment are depreciated on a straight line basis. See note 11 for further information about the estimated useful life by class of assets.
4.7 Intangible assets
Intangible assets are measured at the acquisition cost, less accumulated amortization and impairment losses and comprise rights and concessions, including the signature bonus paid for obtaining concessions for exploration of oil and natural gas (capitalized acquisition costs) and the Onerous Assignment Agreement, referring to the right to carry out prospection and drilling activities for oil, natural gas and other liquid hydrocarbons located in blocks in the pre-salt area (“Cessão Onerosa”); public service concessions; trademarks; patents; software and goodwill. In the individual financial statements, goodwill arising from investments in subsidiaries, associates and jointly controlled entities is accounted for as part of these investments.
Signature bonuses paid for obtaining concessions for exploration of oil and natural gas and amounts related to the Onerous Assignment Agreement are initially capitalized within intangible assets and are transferred to property, plant and equipment upon recognition of proved reserves.
Signature bonuses and amounts related to the Onerous Assignment Agreement are not amortized until they are transferred to property, plant and equipment. Intangible assets with a finite useful life, other than amounts paid for obtaining concessions for exploration of oil and natural gas of producing properties, are amortized over the useful life of the asset on a straight-line basis.
Internally generated intangible assets other than development costs meeting recognition criteria are not capitalized and are expensed as incurred.
Intangible assets with an indefinite useful life are not amortized but are tested annually for impairment considering individual assets or cash-generating units. Their useful lives are reviewed annually to determine whether events and circumstances continue to support an indefinite useful life assessment for those assets. If they do not, the change in the useful life assessment from indefinite to finite is accounted for on a prospective basis.
4.8 Deferred Assets
The balance of deferred assets as of December 31, 2008 is presented in the individual statement of financial positions for the parent company and will be amortized in up to 10 years, subject to impairment testing in accordance with Law 11,941/09.
4.9 Impairment
Property, plant and equipment and intangible assets with definite useful lives and deferred assets are tested for impairment when there is an indication that the carrying amount may not be recoverable. Assets related to exploration and development of oil and gas and assets that have indefinite useful lives, such as goodwill acquired in business combinations are tested for impairment annually, irrespective of whether there is any indication of impairment.
28
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
The impairment test comprises a comparison of the carrying amount of an individual asset or a cash-generating unit with its recoverable amount. Whether the recoverable amount of the unit is less than the carrying amount of the unit, an impairment loss is recognized to reduce the carrying amount to the recoverable amount. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs of disposal and its value in use. Considering the specificity of the Company’s assets, value in use is generally used by the Company for impairment testing purposes, except when specifically indicated.
Value in use is estimated based on the present value of the risk-adjusted (for specific risks) future cash flows expected to arise from the continuing use of an asset or cash-generating unit (based on assumptions that represent the Company’s best estimates), discounted at a pre-tax discount rate. This rate is obtained from the Company’s weighted average cost of capital post-tax (WACC). Cash flow projections are mainly based on the following assumptions: prices based on the Company’s most recent strategic plan; production curves associated with existing projects in the Company's portfolio, operating costs reflecting current market conditions, and investments required for carrying out the projects.
For the impairment test, assets are grouped at the smallest identifiable group that generates largely independent cash inflows from other assets or group of assets (the cash-generating unit). Assets related to exploration and development of oil and gas are tested annually for impairment on a field by field basis.
Reversal of previously recognized impairment losses is permitted for assets other than goodwill.
4.10 Leases
Leases in which the Company has substantially all the risks and rewards incidental to ownership are recognized as finance lease liabilities. When the Company is the lessor the finance lease is recognized as a receivable.
If a lease does not transfer all the risks and rewards, it is classified as an operating lease. Operating leases are recognized as expenses on a straight-line basis over the period of the lease.
4.11 Decommissioning costs
Decommissioning costs are future obligations to perform environmental restoration, dismantle and remove a facility as it terminates operations due to the exhaustion of the area or to economic conditions. Costs related to the abandonment and dismantling of areas are recognized as part of the cost of an asset (associated with the obligation) based on the present value of the expected future cash outflows, discounted at a risk-free credit adjusted rate when a future obligation exists and can be reliably measured. A corresponding provision is recognized as a liability. Unwinding of the discount is recognized as a financial expense, when incurred. The asset is depreciated similarly to other assets, based on the class of the asset.
Future decommissioning costs for oil and natural gas producing properties are recognized on a field by field basis, when a field is declared to be commercial and are revised annually. Decommissioning costs related to proved developed oil and gas reserves are depreciated by applying the unit-of-production method, computed based on a unit-of-production basis over the proved developed oil and gas reserves, applied on a field by field basis.
29
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
4.12 Income tax (IR) and social contribution on profits (CSLL)
Income tax expense for the period comprises current and deferred tax. The Company has adopted the Transition Tax Regime in Brazil (RTT) in accordance with Law 11,941/09 and therefore the taxable profit is computed based on the criteria of Law 6,404/76 before the amendments introduced by Law 11,638/07. Temporary differences arising from the Transition Tax Regime were recognized as deferred income taxes and liabilities.
Taxable profit differs from accounting profit due to certain adjustments required by tax regulations. Temporary differences are differences between the tax base of an asset or liability and its carrying amount. Deferred income tax assets and liabilities are recognized for temporary tax differences, available tax losses and tax credits. Deferred tax assets are recognized only to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized.
4.13 Employee benefits (Post-Employment)
Actuarial commitments related to post-employment benefit plans and health-care plans are recognized as liabilities in the statement of financial position based on actuarial calculations which are revised annually by an independent actuary, using the projected unit credit method, net of the fair value of plan assets, when applicable, out of which the obligations are to be directly settled. The increases in the present value of the obligation resulting from employee service in the current period are recognized in profit or loss.
Under the projected credit unit method, each period of service gives rise to an additional unit of benefit entitlement and each unit is measured separately to determine the final obligation.
Actuarial gains and losses arising from changes in actuarial assumptions and experience adjustments are recognized over the expected average remaining working lives of the employees participating in each plan, in accordance with the corridor method.
Actuarial assumptions related to the variables that will determine the ultimate cost of providing post-retirement benefits include biological and economic assumptions, medical costs estimates, as well as historical data related to expenses incurred and employee contributions.
The Company also contributes amounts to defined contribution plans, that are expensed when incurred and are computed based on a percentage over salaries.
4.14 Share Capital and Stockholders’ Compensation
Share capital comprises common shares and preferred shares. Incremental costs directly attributable to the issue of new shares or options are classified as additional paid in capital and shown (net of tax) in shareholders’ equity as a deduction from the proceeds.
Preferred shares have priority on returns of capital and dividends, which are based on the higher amount of 3% over the net book value of shareholders equity for preferred shares, or 5% of the share capital for preferred shares. Preferred shares do not grant any voting rights; are non-convertible into common shares and participate under the same terms as common shares, in capital increases resulting from the capitalization of reserves and profits.
Dividend distribution comprises dividends and interest on capital determined in accordance with the limits defined in the Company’s bylaws.
30
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Interest on capital is a form of dividend distribution which is deductible for tax purposes in Brazil. Tax benefits from the deduction of interest on capital are recognized in profit or loss.
4.15 Government grants
A government grant is recognized when there is reasonable assurance that the grant will be received and the Company will comply with the conditions attached to the grant.
Government grants are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes the related costs which they are intended to compensate as expenses. Government grants related to assets are initially recognized as deferred income and thereafter are transferred to profit or loss over the useful life of the asset on a straight-line basis.
4.16 Recognition of revenue, costs and expenses
Revenue is recognized when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of revenue and the costs incurred or to be incurred in the transaction can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable for products sold and services provided in the normal course of business, net of returns, discounts and sales taxes.
Revenue from the sale of crude oil and oil products, petrochemical products, natural gas, biofuels and other related products are recognized when the Company retains neither continuing managerial involvement nor effective control over the products sold and the significant risks and rewards of ownership have been transferred to the customer, which is usually when legal title passes to the customer, pursuant to the terms of the sales contract. Sales revenues from freight and other services provided are recognized based on the stage of completion of the transaction.
Finance income and expense mainly comprise interest income on financial investments and government bonds, interest expense on debt, gains and losses on marketable securities measured at fair value, as well as net exchange and inflation indexation charges. Finance expense does not include borrowing costs directly attributable to the construction of assets that necessarily take a substantial period of time to become operational, which are capitalized as part of the costs of these assets.
Revenue, costs and expenses are recognized on the accrual basis.
4.17 New standards and interpretations
New standards and amendments to standards and interpretations issued by the International Accounting Standards Board (IASB) effective for annual periods beginning on January 1, 2012, none of which had a significant effect on the consolidated financial statements for 2012, are set out below:
Amendments to IFRS 7: “Disclosures: Transfers of Financial Assets”.
Amendments to IAS 12 – “Deferred Tax Recovery of Underlying Assets”. It establishes criteria for calculating the tax base of an asset.
A number of new standards and amendments to standards and interpretations issued by the International Accounting Standards Board (IASB) are effective for annual periods beginning after January 1, 2012 as set out below. They have not been applied in preparing these consolidated financial statements at December 31, 2012.
31
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Standards |
Brief description |
Effective Date (*) |
Amendment to IAS 1 |
‘Financial statement presentation’, regarding other comprehensive income Requires for entities to group items presented in ‘other comprehensive income’ (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). |
January 1, 2013 |
Amendments to IAS 19 |
“Employee Benefits ” Eliminates the corridor method for recognizing actuarial gains or losses, and require the calculation of finance costs on a net funding basis. |
January 1, 2013 |
IFRS 10 |
"Consolidated Financial Statements" Defines principles and requirements for the preparation and presentation of consolidated financial statements when an entity controls one or more other entities. |
January 1, 2013 |
IFRS 11 |
“Joint Arrangements” Establishes principles for disclosure of financial statements of entities that are parties of joint agreements. There are two types of joint arrangement: joint operations and joint ventures. Joint operations arise where a joint operator has rights to the assets and obligations relating to the arrangement and hence accounts for its interest in assets, liabilities, revenue and expenses. |
January 1, 2013 |
IFRS 12 |
“Disclosure of Interests in Other Entities” Consolidates all the requirements of disclosures that an entity should carry out when participating in one or more entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. |
January 1, 2013 |
IFRS 13 |
“Fair Value Measurement” Provides a precise definition of fair value , explains how to calculate it (one single source of measurement )and determines what must be disclosed. |
January 1, 2013 |
Amendments to IFRS 7 |
Disclosures – Offesetting Financial Assets and Financial Liabilities Establishes disclosure requirements for compensation agreements of financial assets and liabilities. |
January 1, 2013 |
IAS 27 (revised 2011) |
“Separate financial statements" Includes the provisions on separate financial statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. |
January 1, 2013 |
IAS 28 (revised 2011) |
"Associates and joint ventures" Includes the requirements for joint ventures, as well as associates, to be equity accounted following the issue of IFRS 11. |
January 1, 2013 |
IFRS 9 |
"Financial instruments" and Amendments IFRS 9 retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. |
January 1, 2015 |
(*) Effective for annual periods beginning on or after these dates.
32
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
The estimated impact that initial application of Amendments to IAS 19 is expected to have, due to the elimination of the corridor method (which allowed companies to defer actuarial gains and losses) is an increase of R$ 21.1 billion in our net actuarial liability, as well as a corresponding increase of R$ 6.1 billion in our deferred tax assets and a decrease of R$ 15 billion in the shareholders' equity of the Company.
None of the other amendments and new standards listed above is expected to have a significant effect on the consolidated financial statements.
5 Cash and cash equivalents
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Cash at bank and in hand |
2,024 |
|
3,731 |
|
66 |
|
672 |
Short-term financial investments |
|
|
|
|
|
|
|
- In Brazil |
|
|
|
|
|
|
|
Mutual funds - Interbank Deposit |
16,589 |
|
10,301 |
|
15,570 |
|
9,210 |
Other investment funds |
856 |
|
4,275 |
|
498 |
|
2,623 |
|
17,445 |
|
14,576 |
|
16,068 |
|
11,833 |
- Abroad |
8,159 |
|
17,440 |
|
1,259 |
|
6,353 |
Total financial investments |
25,604 |
|
32,016 |
|
17,327 |
|
18,186 |
Total cash and cash equivalents |
27,628 |
|
35,747 |
|
17,393 |
|
18,858 |
Short-term financial investments in Brazil comprise mutual funds mainly composed by Brazilian Federal Government Bonds. In the Parent Company they also include investments in receivables investment funds (FIDC) of the Petrobras group.
Short-term financial investments abroad comprise time deposits that have maturities of three months or less and other short-term fixed income instruments from highly-ranked financial institutions.
33
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
6 Marketable securities
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Trading securities |
20,888 |
|
16,785 |
|
20,888 |
|
16,785 |
Available-for-sale securties |
488 |
|
5,479 |
|
191 |
|
5,210 |
Held-to-maturity securities |
299 |
|
291 |
|
2,588 |
|
6,849 |
|
21,675 |
|
22,555 |
|
23,667 |
|
28,844 |
Current |
21,316 |
|
16,808 |
|
23,379 |
|
23,625 |
Non-current |
359 |
|
5,747 |
|
288 |
|
5,219 |
Trading and available-for-sale securities refer mainly to investments in government Treasury notes that have maturities of more than 90 days. The current asset classification reflects the expectation of their realization in the short term.
Available-for-sale securities include Brazilian Government Treasury Notes previously pledged as collateral to Petros (Note 20.1).
Held-to-maturity securities of the Parent Company include investments in the non-standardized receivables investment fund (FIDC-NP) in the amount of R$ 2,370 at December 31, 2012 and are presented in current assets.
7.1 Trade receivables, net
|
Consolidated |
|
|
|
Parent company | ||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
Trade receivables |
|
|
|
|
|
|
|
Third parties |
22,040 |
|
19,348 |
|
5,233 |
|
3,207 |
Related parties (Note 17) |
|
|
|
|
|
|
|
Subsidiaries, jointly controlled entities and associates |
1,593 |
|
1,549 |
|
16,077 |
# |
26,146 |
Receivables from the electricity sector |
3,958 |
|
3,672 |
|
911 |
# |
1,099 |
Petroleum and alcohol accounts - STN (*) |
835 |
|
832 |
|
835 |
|
832 |
Other receivables |
6,297 |
|
5,545 |
|
3,376 |
# |
3,029 |
|
34,723 |
|
30,946 |
|
26,432 |
# |
34,313 |
Provision for impairment of trade receivables |
(2,967) |
|
(2,790) |
|
(412) |
# |
(402) |
|
31,756 |
|
28,156 |
|
26,020 |
# |
33,911 |
Current |
22,681 |
|
22,053 |
|
17,374 |
# |
21,068 |
Non-current |
9,075 |
|
6,103 |
|
8,646 |
# |
12,843 |
(*) Secretaria do Tesouro Nacional - National Treasury Secretariat.
34
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
7.2 Changes in the provision for impairment of trade receivables
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Opening balance |
2,790 |
|
2,681 |
|
402 |
|
466 |
Additions (*) |
587 |
|
586 |
|
287 |
|
238 |
Write-offs / Reversals (*) |
(410) |
|
(477) |
|
(277) |
|
(302) |
Closing balance |
2,967 |
|
2,790 |
|
412 |
|
402 |
|
|
|
|
|
|
|
|
Current |
1,746 |
|
1,685 |
|
412 |
|
402 |
Non-current |
1,221 |
|
1,105 |
|
- |
|
- |
(*) It includes exchange differences arising from translation of the provision for impairment of trade receivables in companies abroad.
7.3 Trade and other receivables overdue (Third parties)
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Up to 3 months |
1,572 |
|
1,411 |
|
1,070 |
|
800 |
From 3 to 6 months |
319 |
|
215 |
|
171 |
|
82 |
From 6 to 12 months |
370 |
|
264 |
|
210 |
|
64 |
More than 12 months |
3,243 |
|
2,982 |
|
475 |
|
447 |
|
5,504 |
|
4,872 |
|
1,926 |
|
1,393 |
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Products: |
|
|
|
|
|
|
|
Oil products (*) |
12,016 |
|
9,166 |
|
10,216 |
|
7,550 |
Fuel Alcohol (*) |
330 |
|
782 |
|
155 |
|
289 |
|
12,346 |
|
9,948 |
|
10,371 |
|
7,839 |
|
|
|
|
|
|
|
|
Raw materials, mainly crude oil (*) |
13,184 |
|
14,847 |
|
11,200 |
|
11,718 |
Maintenance materials and supplies (*) |
3,846 |
|
3,369 |
|
3,386 |
|
2,911 |
Others |
452 |
|
367 |
|
23 |
|
33 |
|
29,828 |
|
28,531 |
|
24,980 |
|
22,501 |
Current |
29,736 |
|
28,447 |
|
24,908 |
|
22,434 |
Non-current |
92 |
|
84 |
|
72 |
|
67 |
(*) It includes imports in transit.
35
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
9 Mergers, split-offs and other information about investments
Merger of Petroquisa and split-off of BRK
On January 27, 2012, the Extraordinary General Meeting of Petrobras approved the merger of Petrobras Química S.A. (Petroquisa) into Petrobras, the partial split-off of BRK Investimentos Petroquímicos S.A. (BRK) and the merger of the split-off portion into Petrobras, without capital increase.
Signing of settlement agreement – Pasadena Refinery
On June 29, 2012, the Company entered into an out-of-court settlement to terminate all existing lawsuits between its subsidiaries and Belgium’s Transcor/Astra Group, which controls Astra Oil Trading NV (Astra), including those related to the arbitration process which, in April 2009, recognized the exercise of Astra’s put option for its stake (50%) in Pasadena Refining System Inc and PRSI Trading Company to Petrobras America S.A. - PAI.
The amount of US$ 70 (R$ 140) was recognized in profit or loss in the second quarter of 2012, and the remaining portion had been recognized in prior periods. The total determined in the agreement was US$ 820.5. After the execution of the settlement agreement and the payment of the respective amount (paid when the agreement was signed), both parties gave full and general release of all issues under dispute between them.
Fair Value Appraisal of GBD
The appraisal of the fair value of the assets acquired and the liabilities assumed from the subsidiary Gás Brasiliano Distribuidora S.A. – GBD was concluded in June 2012. Petrobras Gás S.A. - Gaspetro acquired 100% of GBD’s shares in 2011. This appraisal resulted in a purchase price allocation of the total amount of R$ 444 (equivalent to US$ 280 million) to intangible assets of R$ 332 and other assets and liabilities, net of R$ 112. Therefore, no goodwill was recognized.
Petrobras Logística de Exploração e Produção S.A. - PBLOG
On July 31, 2012, Alberto Pasqualini S.A. - REFAP was renamed Empresa de Logística de E&P S.A., after transferring its refining assets to Petrobras, with the objective of providing logistics services to oil and gas exploration and production operations in Brazil. The shareholders’ equity of the company (that has not yet started to operate) was not affected by the transfer of assets. On November 1, 2012 Empresa de Logística de E&P S.A was renamed Petrobras Logística de Exploração e Produção S.A. - PB-LOG.
36
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
10 Investments
10.1 Information about subsidiaries, jointly controlled entities and associates
|
|
|
Thousands of shares |
|
|
| |||||
|
% Petrobras' ownership |
|
Subscribed capital at December 31, 2012 |
|
Common shares |
|
Preferred shares |
Shareholders’ equity (deficit) |
Net income (loss) for the year | ||
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
Petrobras Netherlands B.V. - PNBV |
100.00% |
|
10,457 |
|
41,870 |
- |
- |
|
21,044 |
|
5,057 |
Refinaria Abreu e Lima S.A. |
100.00% |
|
11,014 |
|
11,013,815 |
- |
- |
|
10,567 |
|
(555) |
Petrobras Distribuidora S.A. - BR |
100.00% |
|
4,182 |
|
34,777,774 |
- |
- |
|
10,358 |
|
1,891 |
Petrobras Gás S.A. - Gaspetro |
99.99% |
|
6,865 |
|
3,180 |
- |
794 |
|
10,322 |
|
1,539 |
Petrobras Transporte S.A. - Transpetro |
100.00% |
|
2,946 |
|
2,946,300 |
- |
- |
|
3,906 |
|
720 |
Petrobras Logística de Exploração e Produção S.A. - PB-LOG |
100.00% |
|
3,162 |
|
2,388,987 |
- |
- |
|
3,435 |
|
8 |
Petrobras International Finance Company - PifCo |
100.00% |
|
531 |
|
300,050 |
- |
- |
|
(2,569) |
|
(1,013) |
Petrobras Biocombustível S.A. |
100.00% |
|
2,586 |
|
258,550 |
- |
- |
|
1,916 |
|
(217) |
Companhia Integrada Têxtil de Pernambuco S.A. - Citepe |
100.00% |
|
2,127 |
|
2,127,229 |
- |
- |
|
1,801 |
|
11 |
Companhia Locadora de Equipamentos Petrolíferos S.A. - CLEP |
100.00% |
|
827 |
|
916,976 |
- |
- |
|
1,503 |
|
39 |
Companhia Petroquímica de Pernambuco S.A. - PetroquímicaSuape |
100.00% |
|
1,792 |
|
1,791,520 |
- |
- |
|
1,404 |
|
(83) |
Petrobras International Braspetro - PIB BV |
88.12% |
|
6 |
|
2,837 |
- |
- |
|
969 |
|
557 |
Liquigás Distribuidora S.A. |
100.00% |
|
581 |
|
8,145 |
- |
- |
|
848 |
|
1 |
Termomacaé Ltda. |
99.99% |
|
634 |
|
634,015 |
(*) |
- |
|
796 |
|
189 |
Comperj Poliolefinas S.A. |
100.00% |
|
651 |
|
65,108 |
- |
- |
|
651 |
|
- |
Breitener Energética S.A. |
93.66% |
|
592 |
|
484,490 |
- |
- |
|
508 |
|
30 |
INNOVA S.A. |
100.00% |
|
307 |
|
57,600 |
- |
5,748 |
|
431 |
|
68 |
Termoceará Ltda. |
100.00% |
|
275 |
|
275,226 |
(*) |
- |
|
343 |
|
64 |
Petrobras Comercializadora de Energia Ltda. - PBEN |
99.91% |
|
217 |
|
216,852 |
(*) |
- |
|
257 |
|
25 |
Arembepe Energia S.A. |
100.00% |
|
276 |
|
186,290,218 |
- |
- |
|
227 |
|
35 |
Baixada Santista Energia S.A. |
100.00% |
|
297 |
|
297,136 |
- |
- |
|
217 |
|
(24) |
Sociedade Fluminense de Energia Ltda. - SFE |
99.99% |
|
56 |
|
55,556 |
(*) |
- |
|
153 |
|
117 |
Termomacaé Comercializadora de Energia Ltda |
100.00% |
|
78 |
|
77,599 |
(*) |
- |
|
147 |
|
87 |
5283 Participações Ltda. |
100.00% |
|
1,423 |
|
1,422,603 |
(*) |
- |
|
115 |
|
66 |
Energética Camaçari Muriçy I Ltda. |
71.60% |
|
98 |
|
120,835 |
- |
- |
|
101 |
|
47 |
Comperj Estirênicos S.A. |
100.00% |
|
87 |
|
8,739 |
- |
- |
|
87 |
|
- |
Fundo de Investimento Imobiliário RB Logística - FII |
99.00% |
|
1 |
|
117,127 |
(*) |
- |
|
(82) |
|
(93) |
Comperj MEG S.A. |
100.00% |
|
77 |
|
7,696 |
- |
- |
|
77 |
|
- |
Termobahia S.A. |
98.85% |
|
312 |
|
52 |
- |
- |
|
61 |
|
20 |
Cordoba Financial Services GmbH |
100.00% |
|
5 |
|
1 |
(**) |
- |
|
46 |
|
(1) |
Cayman Cabiunas Investment Co. |
100.00% |
|
- |
|
100 |
(**) |
25,500 |
|
43 |
|
21 |
Petrobras Negócios Eletrônicos S.A. - E-Petro |
99.95% |
|
21 |
|
21,000 |
- |
- |
|
28 |
|
1 |
Companhia de Desenvolvimento de Plantas Utilidades S.A. - CDPU |
80.00% |
|
25 |
|
25,001 |
- |
- |
|
24 |
|
- |
Braspetro Oil Services Company - Brasoil |
100.00% |
|
351 |
|
106,210 |
- |
- |
|
(14) |
|
(244) |
Companhia de Recuperação Secundária S.A. - CRSEC |
100.00% |
|
- |
|
43,456 |
- |
- |
|
9 |
|
- |
Comperj Participações S.A. |
100.00% |
|
22 |
|
2,150 |
- |
- |
|
(2) |
|
(14) |
Downstream Participações Ltda. |
99.99% |
|
1 |
|
1,412 |
(*) |
- |
|
(1) |
|
25 |
Braspetro Oil Company - BOC |
100.00% |
|
- |
|
1 |
(**) |
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Jointly controlled entities |
|
|
|
|
|
|
|
|
|
|
|
UTE Norte Fluminense S.A. |
10.00% |
|
481 |
|
481,432 |
- |
- |
|
935 |
|
131 |
Termoaçu S.A. |
76.87% |
|
700 |
|
699,737 |
- |
- |
|
740 |
|
19 |
Fábrica Carioca de Catalizadores S.A. - FCC |
50.00% |
|
120 |
|
502,145 |
- |
- |
|
282 |
|
55 |
Logum Logística S.A. |
20.00% |
|
300 |
|
430,556 |
- |
- |
|
212 |
|
(52) |
Brasil PCH S.A. |
49.00% |
|
109 |
|
94,188 |
- |
14,844 |
|
166 |
|
48 |
Cia Energética Manauara S.A. |
40.00% |
|
50 |
|
45,000 |
- |
- |
|
155 |
|
18 |
Ibiritermo S.A. |
50.00% |
|
8 |
|
7,652 |
- |
- |
|
112 |
|
42 |
Petrocoque S.A. Indústria e Comércio |
50.00% |
|
50 |
|
30,222 |
- |
- |
|
106 |
|
18 |
Brasympe Energia S.A. |
20.00% |
|
26 |
|
260,000 |
- |
- |
|
79 |
|
3 |
Participações em Complexos Bioenergéticos S.A. - PCBIOS |
50.00% |
|
63 |
|
62,850 |
- |
- |
|
62 |
|
- |
Refinaria de Petróleo Riograndense S.A. |
33.20% |
|
32 |
|
5,158 |
- |
15,296 |
|
57 |
|
12 |
METANOR S.A. - Metanol do Nordeste |
34.54% |
|
67 |
|
98,693 |
- |
197,386 |
|
45 |
|
(7) |
Companhia de Coque Calcinado de Petróleo S.A. - COQUEPAR |
45.00% |
|
62 |
|
62,056 |
- |
- |
|
45 |
|
(2) |
Eólica Mangue Seco 4 - Geradora e Comercializadora de Energia Elétrica S.A. |
49.00% |
|
40 |
|
39,918 |
- |
- |
|
42 |
|
1 |
Brentech Energia S.A. |
30.00% |
|
30 |
|
25,901 |
- |
- |
|
40 |
|
13 |
Eólica Mangue Seco 3 - Geradora e Comercializadora de Energia Elétrica S.A. |
49.00% |
|
39 |
|
38,911 |
- |
- |
|
38 |
|
(2) |
Eólica Mangue Seco 2 - Geradora e Comercializadora de Energia Elétrica S.A. |
51.00% |
|
35 |
|
35,353 |
- |
- |
|
35 |
|
(3) |
Eólica Mangue Seco 1 - Geradora e Comercializadora de Energia Elétrica S.A. |
49.00% |
|
35 |
|
35,433 |
- |
- |
|
34 |
|
(1) |
GNL do Nordeste Ltda. |
50.00% |
|
- |
|
7,507 |
(*) |
- |
|
- |
|
- |
37
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
|
|
|
Thousands of shares |
|
|
|
| |||||
|
% Petrobras' ownership |
|
Subscribed capital at December 31, 2012 |
|
Common shares |
|
Preferred shares |
Shareholders’ equity (deficit) |
Net income (loss) for the year |
|||
Associates |
|
|
|
|
|
|
|
|
|
|
|
|
Braskem S.A. |
36.20% |
|
8,043 |
|
451,669 |
|
345,597 |
|
8,295 |
(***) |
(972) |
(***) |
Fundo de Investimento em Participações de Sondas |
5.00% |
|
1,916 |
|
95,784 |
(*) |
- |
|
1,920 |
|
7 |
|
Sete Brasil Participações S.A. |
5.00% |
|
2,021 |
|
101,050 |
|
- |
|
1,872 |
|
(51) |
|
UEG Araucária Ltda. |
20.00% |
|
707 |
|
707,440 |
(*) |
- |
|
666 |
|
28 |
|
Deten Química S.A. |
27.88% |
|
213 |
|
99,327,769 |
|
- |
|
313 |
|
54 |
|
Energética SUAPE II |
20.00% |
|
140 |
|
139,977 |
|
- |
|
148 |
|
36 |
|
Termoelétrica Potiguar S.A. - TEP |
20.00% |
|
37 |
|
11,259 |
|
- |
|
84 |
|
(9) |
|
Companhia Energética Potiguar S.A. |
20.00% |
|
9 |
|
1 |
|
- |
|
64 |
|
56 |
|
Nitroclor Ltda. |
38.80% |
|
10 |
|
10,330 |
(*) |
- |
|
1 |
|
- |
|
Bioenergética Britarumã S.A. |
30.00% |
|
- |
|
110 |
|
- |
|
- |
|
- |
|
(*)Quota
(**) Lot of one share
(***) As of 09/30/12 – Date from latest financial reports available to the market.
10.2 Changes in the Investments (Parent Company)
|
Balance at 12/31/2011 |
Acquisition and paying in of capital |
Additional paid in capital |
Corporate restructuring /share capital decrease |
Equity accounting |
Other comprehensive income |
Dividends |
|
Balance at 12/31/2012 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PNBV |
13,740 |
|
27 |
|
48 |
|
- |
|
5,161 |
|
1,536 |
|
- |
|
20,512 |
Refinaria Abreu e Lima |
2,997 |
|
8,125 |
|
- |
|
- |
|
(555) |
|
- |
|
- |
|
10,567 |
Petrobras Distribuidora |
9,960 |
|
- |
|
- |
|
(971) |
|
1,891 |
|
32 |
|
(688) |
|
10,224 |
Gaspetro |
10,574 |
|
262 |
|
36 |
|
(12) |
|
1,539 |
|
- |
|
(2,077) |
|
10,322 |
Transpetro |
3,146 |
|
359 |
|
- |
|
- |
|
669 |
|
17 |
|
(424) |
|
3,767 |
PB Log |
- |
|
- |
|
- |
|
3,421 |
|
22 |
|
- |
|
(8) |
|
3,435 |
PBIO |
1,477 |
|
683 |
|
(22) |
|
- |
|
(217) |
|
(5) |
|
- |
|
1,916 |
Citepe |
- |
|
1,180 |
|
- |
|
610 |
|
11 |
|
- |
|
- |
|
1,801 |
CLEP |
1,473 |
|
- |
|
- |
|
- |
|
39 |
|
- |
|
(10) |
|
1,502 |
PetroquímicaSuape |
- |
|
829 |
|
- |
|
658 |
|
(83) |
|
- |
|
- |
|
1,404 |
PIBBV |
400 |
|
- |
|
88 |
|
- |
|
491 |
|
(126) |
|
- |
|
853 |
Liquigás |
- |
|
- |
|
- |
|
858 |
|
1 |
|
- |
|
(11) |
|
848 |
Termomacaé Ltda |
743 |
|
- |
|
- |
|
- |
|
189 |
|
- |
|
(137) |
|
795 |
COMPERJ Poliolefinas |
651 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
651 |
Breitener |
30 |
|
433 |
|
(4) |
|
- |
|
17 |
|
- |
|
- |
|
476 |
INNOVA |
377 |
|
- |
|
- |
|
- |
|
68 |
|
- |
|
(14) |
|
431 |
Termoceará |
319 |
|
- |
|
- |
|
- |
|
64 |
|
- |
|
(40) |
|
343 |
PBEN |
270 |
|
- |
|
- |
|
- |
|
25 |
|
- |
|
(38) |
|
257 |
Arembepe |
- |
|
186 |
|
- |
|
- |
|
37 |
|
- |
|
- |
|
223 |
Baixada Santista |
241 |
|
- |
|
- |
|
- |
|
(24) |
|
- |
|
- |
|
217 |
Petroquisa |
4,516 |
|
- |
|
- |
|
(4,516) |
|
- |
|
- |
|
- |
|
- |
Downstream |
1,124 |
|
2,300 |
|
- |
|
(3,459) |
|
35 |
|
- |
|
- |
|
- |
Other subsidiaries |
591 |
|
24 |
|
29 |
|
- |
|
347 |
|
(8) |
|
(123) |
|
860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jointly controlled entities |
1,051 |
|
4 |
|
- |
|
207 |
|
114 |
|
- |
|
(89) |
|
1,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates |
1,643 |
|
185 |
|
(5) |
|
2,139 |
|
(231) |
|
24 |
|
(190) |
|
3,565 |
|
55,323 |
|
14,597 |
|
170 |
|
(1,065) |
|
9,610 |
|
1,470 |
|
(3,849) |
|
76,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries, jointly controlled entities and associates |
|
76,256 |
|
55,323 | ||||||
|
|
|
|
|
Goodwill |
|
3,180 |
|
3,056 | ||||||
|
|
|
|
|
Unrealized profits - Parent company |
|
(1,143) |
|
(1,340) | ||||||
|
|
|
|
|
Other investments |
|
195 |
|
200 | ||||||
|
|
|
|
|
Total investments |
|
78,488 |
|
57,239 | ||||||
38
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
10.3 Investments (Consolidated)
|
2012 |
|
2011 |
Associates and jointly controlled entities |
|
|
|
Petrochemical investments |
5,837 |
|
6,226 |
Gas distributors |
1,134 |
|
1,056 |
Guarani S.A. |
985 |
|
847 |
Termoaçu S.A. |
546 |
|
538 |
Petroritupano - Orielo |
476 |
|
458 |
Nova Fronteira Bionergia S.A. |
414 |
|
434 |
Petrowayu - La Concepción |
394 |
|
330 |
Distrilec S.A. |
84 |
|
216 |
Petrokariña - Mata |
154 |
|
195 |
UEG Araucária |
131 |
|
128 |
Transierra S.A. |
142 |
|
122 |
Other associates and jointly controlled entities |
1,936 |
|
1,468 |
|
|
|
|
|
12,233 |
|
12,018 |
|
|
|
|
Other investments |
244 |
|
230 |
|
12,477 |
|
12,248 |
10.4 Investments in listed companies
|
|
|
|
|
|
|
|
Quoted stock |
|
|
|
| ||
|
|
|
|
|
|
|
|
exchange prices |
|
|
|
| ||
|
|
Thousand-share lot |
|
|
|
(R$ per share) |
|
Market value | ||||||
Company |
|
2012 |
|
2011 |
|
Type |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petrobras Argentina (*) |
|
1,356,792 |
|
678,396 |
|
Common |
|
1.41 |
|
2.70 |
|
1,913 |
|
1,832 |
|
|
|
|
|
|
|
|
|
|
|
|
1,913 |
|
1,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Braskem |
|
212,427 |
|
212,427 |
|
Common |
|
9.60 |
|
11.78 |
|
2,039 |
|
2,502 |
Braskem |
|
75,793 |
|
75,793 |
|
Preferred - A |
|
12.80 |
|
12.80 |
|
970 |
|
970 |
|
|
|
|
|
|
|
|
|
|
|
|
3,009 |
|
3,472 |
(*) On September 26, 2012 Petrobras Argentina S.A. increased share capital through the capitalization of profit reserves, as approved by an Extraordinary General Meeting held along with the Annual General Meeting on March 29, 2012. This capitalization was carried out by the issuance of 1,009,618,410 new class B common shares. This transaction did not affect the Company's shareholders' equity.
The market value of these shares does not necessarily reflect the realizable value of a large block of shares.
39
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
10.5 Summarized information on jointly controlled entities and associates
The Company invests in jointly controlled entities and associates in Brazil and abroad, whose activities are related to petrochemical companies, gas distributors, biofuels, thermoelectric power stations, refineries and other activities. Summarized accounting information is set out below:
|
2012 | ||||||
|
Jointly controlled entities |
|
Associates | ||||
|
In Brazil |
|
Abroad |
|
In Brazil |
|
Abroad |
|
|
|
|
|
|
|
|
Current assets |
4,333 |
|
1,581 |
|
14,710 |
|
5,559 |
Non-current assets |
1,950 |
|
344 |
|
6,591 |
|
347 |
Property, plant and equipment, net |
6,478 |
|
4,721 |
|
24,219 |
|
4,141 |
Other non-current assets |
2,911 |
|
134 |
|
9,181 |
|
7 |
|
15,672 |
|
6,780 |
|
54,701 |
|
10,054 |
|
|
|
|
|
|
|
|
Current liabilities |
4,255 |
|
2,660 |
|
14,139 |
|
4,643 |
Non-current liabilities |
3,585 |
|
1,938 |
|
22,485 |
|
1,635 |
Shareholders' equity |
7,742 |
|
1,656 |
|
17,989 |
|
3,776 |
Non-controlling interest |
90 |
|
526 |
|
88 |
|
- |
|
15,672 |
|
6,780 |
|
54,701 |
|
10,054 |
|
|
|
|
|
|
|
|
Sales revenues |
11,247 |
|
2,419 |
|
38,071 |
|
1,250 |
Net Income for the year |
884 |
|
118 |
|
(860) |
|
243 |
Ownership interest - % |
From 10% to 83% |
|
From 22% to 50% |
|
From 5% to 43% |
|
From 22% to 50% |
40
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
11 Property, plant and equipment
11.1 By class of asset
|
Consolidated |
|
Parent company | ||||||||
|
Land, buildings and improvements |
Equipment and other assets |
Assets under construction (*) |
Exploration and development costs (oil and gas producing properties) |
Total |
|
Total | ||||
Balance at January 1, 2011 |
8,756 |
|
97,174 |
|
138,578 |
|
36,229 |
|
280,737 |
|
189,912 |
Additions |
169 |
|
2,730 |
# |
53,690 |
# |
3,290 |
|
59,879 |
|
42,222 |
Additions to decommissioning assets / review of estimates |
- |
|
- |
# |
- |
# |
2,532 |
|
2,532 |
|
2,382 |
Capitalized borrowing costs |
- |
|
- |
# |
7,325 |
# |
- |
|
7,325 |
|
5,788 |
Business combinations |
- |
|
- |
# |
24 |
# |
- |
|
24 |
|
- |
Write-offs |
(41) |
|
(421) |
# |
(2,221) |
# |
(581) |
|
(3,264) |
|
(2,258) |
Transfers |
4,205 |
|
31,283 |
# |
(40,294) |
# |
12,394 |
|
7,588 |
|
2,221 |
Depreciation, amortization and depletion |
(799) |
|
(9,769) |
# |
- |
# |
(6,660) |
|
(17,228) |
|
(12,376) |
Impairment - recognition |
- |
|
(91) |
# |
(276) |
# |
(391) |
|
(758) |
|
(473) |
Impairment - reversal |
3 |
|
27 |
# |
- |
# |
66 |
|
96 |
|
61 |
Cumulative translation adjustment |
66 |
|
3,548 |
# |
1,733 |
# |
839 |
|
6,186 |
|
- |
Balance at December 31, 2011 |
12,359 |
|
124,481 |
# |
158,559 |
# |
47,718 |
|
343,117 |
|
227,479 |
Cost |
16,865 |
|
195,977 |
# |
158,559 |
# |
99,474 |
|
470,875 |
|
321,708 |
Accumulated depreciation, amortization and depletion |
(4,506) |
|
(71,496) |
# |
- |
# |
(51,756) |
|
(127,758) |
|
(94,229) |
Balance at December 31, 2011 |
12,359 |
|
124,481 |
# |
158,559 |
# |
47,718 |
|
343,117 |
|
227,479 |
Additions |
100 |
|
4,058 |
# |
63,844 |
# |
3,358 |
|
71,360 |
|
56,108 |
Additions to decommissioning assets / review of estimates |
- |
|
- |
# |
- |
# |
10,719 |
|
10,719 |
|
10,481 |
Capitalized borrowing costs |
- |
|
- |
# |
7,400 |
# |
- |
|
7,400 |
|
5,348 |
Business combinations |
169 |
|
370 |
# |
4 |
# |
- |
|
543 |
|
- |
Write-offs |
(11) |
|
(119) |
# |
(5,232) |
# |
(215) |
|
(5,577) |
|
(5,151) |
Transfers |
4,946 |
|
48,679 |
# |
(59,531) |
# |
13,550 |
|
7,644 |
|
879 |
Depreciation, amortization and depletion |
(933) |
|
(12,985) |
# |
- |
# |
(7,360) |
|
(21,278) |
|
(15,250) |
Impairment - recognition |
(42) |
|
(366) |
# |
(77) |
# |
(307) |
|
(792) |
|
(294) |
Impairment - reversal |
- |
|
91 |
# |
276 |
# |
133 |
|
500 |
|
224 |
Cumulative translation adjustment |
96 |
|
2,763 |
# |
1,635 |
# |
586 |
|
5,080 |
|
- |
Balance at December 31, 2012 |
16,684 |
|
166,972 |
# |
166,878 |
# |
68,182 |
|
418,716 |
|
279,824 |
Cost |
22,140 |
|
250,630 |
# |
166,878 |
# |
127,408 |
|
567,056 |
|
390,436 |
Accumulated depreciation, amortization and depletion |
(5,456) |
|
(83,658) |
# |
- |
# |
(59,226) |
|
(148,340) |
|
(110,612) |
Balance at December 31, 2012 |
16,684 |
|
166,972 |
# |
166,878 |
# |
68,182 |
|
418,716 |
|
279,824 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average of useful life in years |
25 (25 to 40) |
|
20 (3 to 31) |
|
|
|
Units of production method |
|
| ||
|
except land |
|
(**) |
|
|
|
|
|
|
|
|
(*) It includes oil and gas exploration and development assets.
(**) It includes assets depreciated based on the units of production method.
At December 31, 2012, consolidated and parent company property, plant and equipment include assets under finance leases of R$ 208 and R$ 10,287, respectively (R$ 178 and R$ 10,921 at December 31, 2011).
41
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
11.2 Estimated useful life - Consolidated
Buildings and improvements, equipment and other assets |
|
| ||||
Estimated useful life |
|
Cost |
|
Accumulated depreciation |
Balance at 12/31/2012 | |
5 years or less |
|
10,953 |
|
(6,474) |
|
4,479 |
6 - 10 years |
|
41,172 |
|
(18,703) |
|
22,469 |
11 - 15 years |
|
4,033 |
|
(1,709) |
|
2,324 |
16 - 20 years |
|
69,204 |
|
(18,037) |
|
51,167 |
21 - 25 years |
|
50,961 |
|
(13,760) |
|
37,201 |
25 - 30 years |
|
48,107 |
|
(7,542) |
|
40,565 |
30 years onwards |
|
5,598 |
|
(3,229) |
|
2,369 |
Units of production method |
|
41,104 |
|
(19,660) |
|
21,444 |
|
|
271,132 |
|
(89,114) |
|
182,018 |
|
|
|
|
|
|
|
Buildings and improvements |
|
20,502 |
|
(5,456) |
|
15,046 |
Equipment and other assets |
|
250,630 |
|
(83,658) |
|
166,972 |
11.3 Impairment of assets
Impairment
In 2012 the Company recognized impairment losses relating primarily to mature producing fields in Brazil (R$ 294) and to the review of the cash flows expected to be generated by the U.S. Pasadena Refinery operations (R$ 464).
Reversals of impairment were recognized in 2012 as the assessments revealed that impairment losses recognized in prior periods related to certain oil and gas fields in Brazil (R$ 224) and in the Suape Petrochemical Complex (R$ 276) decreased or no longer exist.
42
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
12 Intangible assets
12.1 By class of Assets
|
|
Consolidated |
|
Parent company | ||||||||
|
|
|
|
Software |
|
|
|
Goodwill from expectations of future profitability |
|
|
|
|
|
Rights and concessions |
|
Acquired |
|
Developed in-house |
|
|
Total |
Total | |||
Balance at December 31, 2010 |
|
78,310 |
|
320 |
|
1,361 |
|
906 |
|
80,897 |
|
77,905 |
Addition |
|
678 |
|
110 |
|
336 |
|
19 |
|
1,143 |
|
411 |
Acquisition through business combination |
|
- |
|
- |
|
- |
|
4 |
|
4 |
|
- |
Capitalized borrowing costs |
|
- |
|
- |
|
36 |
|
- |
|
36 |
|
36 |
Write-offs |
|
(273) |
|
(5) |
|
(12) |
|
- |
|
(290) |
|
(172) |
Transfers |
|
(92) |
|
19 |
|
(36) |
|
(4) |
|
(113) |
|
(72) |
Amortization |
|
(44) |
|
(113) |
|
(341) |
|
- |
|
(498) |
|
(399) |
Impairment - recognition |
|
(2) |
|
- |
|
- |
|
- |
|
(2) |
|
- |
Cumulative translation adjustment |
|
227 |
|
6 |
|
- |
|
24 |
|
257 |
|
- |
Balance at December 31, 2011 |
|
78,804 |
|
337 |
|
1,344 |
|
949 |
|
81,434 |
|
77,709 |
Cost |
|
79,525 |
|
1,361 |
|
2,837 |
|
949 |
|
84,672 |
|
79,872 |
Accumulated amortization |
|
(721) |
|
(1,024) |
|
(1,493) |
|
- |
|
(3,238) |
|
(2,163) |
Balance at December 31, 2011 |
|
78,804 |
|
337 |
|
1,344 |
|
949 |
|
81,434 |
|
77,709 |
Addition |
|
179 |
|
141 |
|
286 |
|
- |
|
606 |
|
458 |
Capitalized borrowing costs |
|
- |
|
- |
|
30 |
|
- |
|
30 |
|
30 |
Write-offs |
|
(229) |
|
(3) |
|
(6) |
|
- |
|
(238) |
|
(231) |
Transfers |
|
(166) |
|
23 |
|
(198) |
|
(28) |
|
(369) |
|
(257) |
Amortization |
|
(91) |
|
(119) |
|
(278) |
|
- |
|
(488) |
|
(360) |
Impairment - reversal |
|
12 |
|
- |
|
- |
|
- |
|
12 |
|
- |
Cumulative translation adjustment |
|
193 |
|
7 |
|
- |
|
20 |
|
220 |
|
- |
Balance at December 31, 2012 |
|
78,702 |
|
386 |
|
1,178 |
|
941 |
|
81,207 |
|
77,349 |
Cost |
|
79,533 |
|
1,463 |
|
2,950 |
|
941 |
|
84,887 |
|
79,873 |
Accumulated amortization |
|
(831) |
|
(1,077) |
|
(1,772) |
|
- |
|
(3,680) |
|
(2,524) |
Balance at December 31, 2012 |
|
78,702 |
|
386 |
|
1,178 |
|
941 |
|
81,207 |
|
77,349 |
Estimated useful life - years |
|
(*) |
|
5 |
|
5 |
|
Indefinite |
|
|
|
|
(*) See note 4.7 (Intangible assets) for further information.
12.2 Concession for exploration of oil and natural gas - Onerous Assignment Agreement (“Cessão Onerosa”)
At December 31, 2012, the Company’s intangible assets include R$74.808 related to the Onerous Assignment agreement, entered into in 2010 by Petrobras, the Federal Government (assignor) and the Agência Nacional de Petróleo, Gás Natural e Biocombustíveis - ANP (regulator and inspector), granting the Company the right to carry out prospection and drilling activities for oil, natural gas and other liquid hydrocarbons located in blocks in the pre-salt area (Franco, Florim, Nordeste de Tupi, Entorno de Iara, Sul de Guará e Sul de Tupi), limited to the production of five billion barrels of oil equivalent in up to 40 years and renewable for a further five years upon certain conditions having been met.
The agreement establishes that at the time of the declaration of commerciality for the reserves there will be a review of volumes and prices, based on independent technical appraisal reports.
43
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
If the review determines that the value of acquired rights are greater than initially paid, the Company may be required to pay the difference to the Federal Government, or may proportionally reduce the total volume of barrels acquired in the terms of the agreement. If the review determines that the value of the acquired rights are lower than initially paid by the Company, the Federal Government will reimburse the Company for the difference by delivering cash or bonds, subject to budgetary regulations.
Once the effects of the aforementioned review become probable and can be reliably measured, the Company will make the respective adjustments to the purchase prices of the rights.
The agreement also establishes a compulsory exploration program for each one of the blocks and minimum commitments related to the acquisition of goods and services from Brazilian suppliers in the exploration and development stages, which will be subject to certification by the ANP. In the event of non-compliance, the ANP may apply administrative sanctions pursuant to the terms in the agreement.
In compliance with the exploration program, in 2012 the Company concluded the drilling of four wells in the Onerous Assignment area, confirming the potential for hydrocarbon resources in the area. Petrobras will continue to develop its investment program and activities as established in the agreement.
12.3 Exploration rights returned to Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (ANP)
Exploration areas returned to ANP in 2012, in the amount of R$ 221 (R$ 158 in 2011) are set out below.
· Exclusive Concession Blocks (Petrobras):
Espírito Santo Basin: ES-M-466;
Santos Basin: S-M-415, S-M-675; S-M-506; S-M-1358; S-M-1482; BM-S-17;
Potiguar Basin: POT-T-515; POT-T-560; POT-T-600; POT-T-602;
Sergipe Alagoas Basin: SEAL-T-252 e SEAL-T-253;
Recôncavo Baiano Basin: REC-T-209.
· Blocks in partnership (returned by Petrobras or by its operators):
Campos Basin: C-M-103; C-M-151;
Espírito Santo Basin: ES-T-410;
Santos Basin: S-M-330, S-M-322; S-M-508, S-M-1476; BM-S-22;
Potiguar Basin: POT-T-608; POT-T-556, POT-T-601; POT-T-564;
Potiguar Offshore Basin: BM-POT-13;
Pará-Maranhão Basin: PAMA-M-187.
12.4 Oil and Gas fields operated by Petrobras returned to ANP
No oil and gas fields were returned to ANP in 2012.
44
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
12.5 Service concession agreement - Distribution of piped natural gas
At December 31, 2012, intangible assets include service concession agreements related to piped natural gas distribution in Brazil, in the amount of R$ 498 maturing between 2029 and 2043, which may be extended. According to the agreements, distribution service can be provided to industrial, residential, commercial, automotive, air conditioning, transport, and other sectors.
The consideration receivable is a factor of a combination of operating costs and expenses and returns on capital invested. The rates charged for gas distribution are subject to periodic reviews by the state regulatory agency.
The agreements establish an indemnity clause for investments made in assets which are subject to return at the end of the service agreement, to be determined based on evaluations and appraisals.
45
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
13 Exploration for and evaluation of oil and gas reserves
The exploration and evaluation activities include the search for oil and gas from obtaining the legal rights to explore a specific area until the declaration of the technical and commercial viability of the reserves.
Movements on capitalized costs directly associated with exploratory wells pending determination of proved reserves and the balance of amounts paid for obtaining rights and concessions for exploration of oil and natural gas (capitalized acquisition costs) are set out in the table below:
|
Consolidated | ||
|
2012 |
|
2011 |
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs (*) |
|
|
|
|
|
|
|
Property plant and equipment |
|
|
|
Balance at January 1 |
18,983 |
|
12,899 |
Additions to capitalized costs pending determination of proved reserves |
12,982 |
|
10,485 |
Capitalized exploratory costs charged to expense |
(5,439) |
|
(2,334) |
Transfers upon recognition of proved reserves |
(5,137) |
|
(2,698) |
Cumulative translation adjustment |
371 |
|
630 |
Balance at December 31 |
21,760 |
|
18,983 |
Intangible Assets (**) |
77,588 |
|
78,167 |
Capitalized Exploratory Well Costs / Capitalized Acquisition Costs |
99,348 |
|
97,150 |
(*) Amounts capitalized and subsequently expensed in the same period have been excluded from the table above.
(**) The balance of intangible assets comprises mainly the amounts related to the Onerous Assignment Agreement (note 12.2).
Exploration costs recognized in profit or loss and cash used in oil and gas exploration and evaluation activities are set out in the table below:
Consolidated | |||
2012 |
2011 | ||
Exploration costs recognized in profit or loss |
- |
- | |
Geological and geophysical expenses |
1,994 |
1,723 | |
Exploration expenditures written off (includes dry wells and signature bonuses) |
5,628 |
2,504 | |
Other exploration expenses |
175 |
170 | |
Total expenses |
7,797 |
4,397 | |
Consolidated | |||
2012 |
2011 | ||
Cash used in activities |
|||
Operating activities |
2,226 |
1,856 | |
Investment activities |
12,982 |
10,485 | |
Total cash used |
15,208 |
12,341 | |
46
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
13.1 Aging of Capitalized Exploratory Well Costs
An aging of the number of wells and the capitalized exploratory well costs based on the drilling completion date, as well as the number of projects for which exploratory well costs have been capitalized for a period greater than one year are set out in the table below:
Aging of capitalized exploratory well costs (*)/(**)
|
Consolidated | ||
|
2012 |
|
2011 |
Capitalized exploratory well costs that have been capitalized for a period of one year |
8,621 |
|
5,939 |
Capitalized exploratory well costs that have been capitalized for a period greater |
|
|
|
than one year |
13,139 |
|
13,044 |
|
21,760 |
|
18,983 |
Number of projects that have exploratory well costs that have been capitalized |
|
|
|
for a period greater than one year |
145 |
|
99 |
(*) Amounts paid for obtaining rights and concessions for exploration of oil and natural gas (capitalized acquisition costs) are not included.
|
In thousand |
|
Number of |
|
R$ |
|
wells |
2011 |
4,523 |
|
62 |
2010 |
2,214 |
|
24 |
2009 |
2,069 |
|
34 |
2008 |
1,205 |
|
11 |
2007 and previous years |
3,128 |
|
18 |
Ending balance |
13,139 |
|
149 |
Of the amount of R$ 13,139 for 145 projects that include wells suspended for more than one year since the completion of drilling, approximately R$ 3,558 are related to wells in areas for which drilling was under way or firmly planned for the near future and approximately R$ 9,284 are related to costs incurred to assess the reserves and their potential development.
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Third parties |
|
|
|
|
|
|
|
In Brazil |
13,306 |
|
12,259 |
|
10,868 |
|
9,252 |
Abroad |
10,430 |
|
9,159 |
|
2,994 |
|
3,016 |
Related parties (Note 17.1) |
1,039 |
|
834 |
|
13,056 |
|
10,333 |
|
24,775 |
|
22,252 |
|
26,918 |
|
22,601 |
47
Petróleo Brasileiro S.A. - Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
15 Finance Debt
|
Consolidated |
|
|
Parent company |
|
| |||||
|
Current liabilities |
Non-current |
Current liabilities |
Non-current | |||||||
|
2012 |
2011 |
2012 |
2011 |
2012 |
2011 |
2012 |
2011 | |||
Abroad |
|
|
|
|
|
|
|
| |||
Financial institutions |
9,428 |
13,641 |
51,406 |
37,590 |
109 |
344 |
14,236 |
13,163 | |||
Bearer bonds - Notes, Global Notes and Bonds
|
2,514 |
803 |
63,413 |
39,441 |
1,509 |
- |
913 |
2,182 | |||
Trust Certificates - Senior/Junior |
- |
- |
- |
5 |
- |
- |
- |
- | |||
Intercompany Loans (Note 17.1) |
- |
- |
- |
- |
- |
- |
21,762 |
- | |||
Prepayment of exports (Note 17.1) |
- |
- |
- |
- |
4,033 |
- |
- |
- | |||
Others |
500 |
12 |
5 |
190 |
- |
- |
- |
- | |||
|
12,442 |
14,456 |
114,824 |
77,226 |
5,651 |
344 |
36,911 |
15,345 | |||
|
|
|
|
|
|
|
|
| |||
In Brazil |
|
|
|
|
|
|
|
| |||
Export Credit Notes |
291 |
135 |
12,795 |
12,982 |
275 |
135 |
12,795 |
12,982 | |||
BNDES |
1,714 |
1,719 |
44,111 |
37,385 |
361 |
303 |
16,193 |
10,224 | |||
Debentures |
286 |
1,853 |
705 |
993 |
72 |
1,700 |
100 |
167 | |||
FINAME |
69 |
79 |
666 |
731 |
69 |
79 |
666 |
731 | |||
Bank Credit Certificate |
102 |
51 |
3,606 |
3,606 |
31 |
52 |
3,606 |
3,606 | |||
Assignmet of non-performing receivables (FIDC-NP) (Note 17.2) |
- |
- |
- |
- |
9,060 |
9,639 |
- |
- | |||
Others |
379 |
591 |
4,111 |
3,482 |
- |
- |
- |
- | |||
|
2,841 |
4,428 |
65,994 |
59,179 |
9,868 |
11,908 |
33,360 |
27,710 | |||
|
15,283 |
18,884 |
180,818 |
136,405 |
15,519 |
12,252 |
70,271 |
43,055 | |||
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| |||
Interest expense on debt |
2,081 |
1,648 |
|
|
606 |
514 |
|
| |||
Long-term debt due within one year (principal) |
5,711 |
6,921 |
|
|
1,820 |
2,099 |
|
| |||
Short-term debt |
7,491 |
10,315 |
|
|
13,093 |
9,639 |
|
| |||
|
15,283 |
18,884 |
|
|
15,519 |
12,252 |
|
| |||
15.1 Scheduled maturity dates of non-current debt (principal and interest accrued)
|
|
2012 | ||
|
|
Consolidated |
|
Parent company |
2014 |
|
8,535 |
|
2,746 |
2015 |
|
14,560 |
|
3,317 |
2016 |
|
27,924 |
|
13,887 |
2017 |
|
19,186 |
|
7,129 |
2018 and thereafter |
|
110,613 |
|
43,192 |
Total |
|
180,818 |
|
70,271 |
|
|
|
|
|
48
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
15.2 Interest rate range for non-current debt
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Abroad |
|
|
|
|
|
|
|
Up to 4% p.a. |
65,022 |
|
41,491 |
|
14,233 |
|
14,476 |
From 4.01 to 6% p.a. |
28,135 |
|
17,711 |
|
20,304 |
|
233 |
From 6.01 to 8% p.a. |
20,263 |
|
15,729 |
|
2,374 |
|
636 |
More than 8% p.a. |
1,404 |
|
2,295 |
|
- |
|
- |
|
114,824 |
|
77,226 |
|
36,911 |
|
15,345 |
|
|
|
|
|
|
|
|
In Brazil |
|
|
|
|
|
|
|
Up to 6% p.a. |
6,916 |
|
5,383 |
|
889 |
|
465 |
From 6.01 to 8% p.a. |
33,740 |
|
32,311 |
|
10,513 |
|
9,559 |
From 8.01 to 10% p.a. |
24,220 |
|
3,621 |
|
21,908 |
|
1,098 |
More than 10% p.a. |
1,118 |
|
17,864 |
|
50 |
|
16,588 |
|
65,994 |
|
59,179 |
|
33,360 |
|
27,710 |
|
180,818 |
|
136,405 |
|
70,271 |
|
43,055 |
15.3 Non-current debt by major currency
|
|
Consolidated |
|
Parent company | ||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
U.S. dollar |
|
98,714 |
|
68,012 |
|
29,166 |
|
14,451 |
Real |
|
37,622 |
|
32,882 |
|
24,143 |
|
19,233 |
Real indexed to U.S. dollar |
|
28,063 |
|
25,942 |
|
10,130 |
|
9,299 |
Euro |
|
10,492 |
|
4,681 |
|
5,371 |
|
- |
Pound Sterling |
|
3,706 |
|
1,991 |
|
1,461 |
|
- |
Japanese Yen |
|
2,221 |
|
2,897 |
|
- |
|
72 |
|
|
180,818 |
|
136,405 |
|
70,271 |
|
43,055 |
The sensitivity analysis for financial instruments subject to foreign exchange variation and the fair value of the long-term debt are disclosed in notes 30 and 31, respectively.
15.4 Weighted average capitalization rate for borrowing costs
The weighted average interest rate, of the costs applicable to borrowings that are outstanding, applied over the balance of assets under construction for capitalization of borrowing costs was 4.5% p.a. in 2012 (4.6% p.a. in 2011).
49
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
15.5 Funding
Funding requirements are mainly related to the development of oil and gas production projects, building of vessels and pipelines, and expansion of industrial plants.
The main long-term debt issuances in 2012 are set out below:
a) Abroad
a) Abroad |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company |
|
Date |
|
Amount |
|
Maturity |
|
Description |
PifCo |
|
Feb/12 |
|
12,029 |
|
2015, 2017, 2021, 2041 |
Global notes issued in the amounts of US$ 1,250 million, US$ 1,750 million, US$ 2,750 million and US$1,250 million with 2.875% p.a., 3.500% p.a., 5.375% p.a. and 6.750% p.a. coupon, respectively. | |
PNBV |
|
Apr/12 to Jun/12 |
3,612 |
|
2018, 2019 and 2023 |
Financing in the amount of US$1,879 million obtained from Morgan Stanley Bank , JP Morgan Chase, Citibank International PLC, and HSBC Bank PLC - Libor + market interest. | ||
PNBV |
|
Aug/12 to Sep/12 |
3,043 |
|
2019 |
|
Financing in the amount of US$1,500 million obtained from Export Development Canada and HSBC Holding PLC - Libor + market interest. | |
PGT BV |
|
Sep/12 |
|
3,043 |
|
2017 and 2018 |
Financing in the amount of US$1,500 million obtained from Banco do Brasil S/A and Citibank N.A. - Libor + market interest. | |
PGT BV |
|
Oct/12 and Dec/12 |
3,072 |
|
2017 and 2018 |
Financing in the amounts of US$1,000 million and US$500 million obtained from Bank of America and Standard Chartered - Libor + market interest. | ||
PGF BV |
|
Oct/12 |
|
5,227 |
|
2019 and 2023 |
Global notes issued in the amounts of € 1,300 million and € 700 million with 3.25% p.a. and 4.25% p.a. coupon, respectively. | |
PGF BV |
|
Oct/12 |
|
1,472 |
|
2029 |
|
Global notes issued in the amounts of £ 450 million with 5.375% p.a. and 4.25% p.a. coupon. |
|
|
|
|
31,498 |
|
|
|
|
50
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
b) In Brazil
Company |
|
Date |
|
Amount |
|
Maturity |
|
Description |
Fundo de Investimento Imobiliário RB Logística |
Jan/12 |
|
409 |
|
2023,2026 and 2028 |
Issuance of real state credit notes for the construction of a laboratory and an administrative building - IPCA + average spread of 5.3% p.a. | ||
Fundo de Investimento Imobiliário FCM |
May/12 |
|
514 |
|
2025 and 2032 |
Issuance of real state credit notes for the construction of the assets of Porto Nacional and Porto Cruzeiro do Sul projects - IPCA + 4.0933% p.a. and 4.9781%p.a. | ||
Petrobras |
|
Jul/12 and Sep/12 |
4,215 |
|
2015 and 2022 |
Financing obtained from BNDES to be used on the modernization of the domestic refining facilities and other infrastructure projects, as well as research and development projects and modernization and expansion of the technology park.
| ||
Petrobras |
|
Nov/12 and Dec/12 |
714 |
|
2015, 2024 and 2026 |
Financing obtained from BNDES to be used on the modernization of the domestic refining facilities, construction of a regasification terminal for natural gas and deployment of industrial unit for the production of nitrogen fertilizers. | ||
|
|
|
|
5,852 |
|
|
|
|
15.6 Funding – outstanding balance
a) Abroad
|
|
|
|
Amount in US$ million | ||||
Company |
Agency |
|
Contracted |
Used |
Balance | |||
PNBV |
|
Citibank International PLC |
686 |
|
549 |
|
137 | |
PNBV |
|
HSBC Bank PLC |
|
1,000 |
|
173 |
|
827 |
Petrobras |
Japan Bank for International Cooperation (JBIC) |
600 |
|
- |
|
600 | ||
Petrobras |
The Bank of Tokyo-Mitsubishi UFJ, Ltd (BTMU) * |
400 |
|
- |
|
400 | ||
(*) Japan Bank for International Cooperation (JBIC) will provide partial guarantees whether the line of credit is used.
b) In Brazil
Company |
Agency |
|
Contracted |
Used |
Balance | |||
Transpetro (*) |
BNDES, Banco do Brasil and Caixa Econômica Federal - CEF |
10,004 |
|
1,265 |
|
8,739 | ||
|
|
|
|
|
|
|
|
|
Empresa de Logística de E&P |
BNDES |
|
1,109 |
|
285 |
|
824 | |
|
|
|
|
|
|
|
|
|
Petrobras |
BNDES |
|
10,375 |
|
4,929 |
|
5,446 | |
|
|
|
|
|
|
|
|
|
Liquigas |
BNDES |
|
114 |
|
83 |
|
31 | |
(*)Purchase and sale agreements of 49 vessels and 20 convoys were signed with six Brazilian shipyards in the amount of R$ 11,116, which 90% is financed by BNDES, Banco do Brasil and Caixa Econômica Federal – CEF.
51
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
15.7 Guarantees
Petrobras is not required to provide guarantees to financial institutions. Certain BNDES loans are secured by the assets being financed.
The loans obtained by Special Purpose Entities (SPE) are guaranteed by the project assets, as well as a lien on credit rights and shares of the SPEs.
16.1 Future minimum lease Payments / Receipts – Finance Leases
|
|
2012 | ||||
|
|
Consolidated |
|
Parent company | ||
|
|
Minimum receipts |
|
Minimum payments |
|
Minimum payments |
|
|
|
|
|
|
|
2013 |
|
385 |
|
43 |
|
2,244 |
2014 - 2017 |
|
1,482 |
|
177 |
|
5,126 |
2018 and thereafter |
|
4,221 |
|
350 |
|
2,436 |
Estimated lease receipts/payments |
|
6,088 |
|
570 |
|
9,806 |
|
|
|
|
|
|
|
Interest expense (annual) |
|
(2,826) |
|
(357) |
|
(2,044) |
|
|
|
|
|
|
|
Present value of the lease receipts / payments |
|
3,262 |
|
213 |
|
7,762 |
Current |
|
123 |
|
37 |
|
1,741 |
Non-current |
|
3,139 |
|
176 |
|
6,021 |
At December 31, 2012 |
|
3,262 |
|
213 |
|
7,762 |
|
|
|
|
|
|
|
Current |
|
225 |
|
82 |
|
1,922 |
Non-current |
|
2,848 |
|
183 |
|
7,422 |
At December 31, 2011 |
|
3,073 |
|
265 |
|
9,344 |
16.2 Future Minimum Lease Payments - Operating leases
|
2012 | |||
|
|
Consolidated |
|
Parent company |
2013 |
|
34,174 |
|
40,218 |
2014 - 2017 |
|
72,162 |
|
94,257 |
2018 and thereafter |
|
60,383 |
|
114,510 |
At December 31, 2012 |
|
166,719 |
|
248,985 |
|
|
|
|
|
At December 31, 2011 |
|
104,132 |
|
193,880 |
During 2012, the Company paid R$ 20,443 for consolidated operating lease installments (R$ 27,146 in the Parent company), recognized as a period expense.
52
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
17 Related parties
17.1 Commercial transactions and other operations
Petrobras carries out commercial transactions with its subsidiaries, special purpose entities and associates at normal market prices and market conditions. At December 31, 2012 and December 31, 2011, no losses were recognized on the balance of related party accounts receivable.
17.1.1 By transaction
|
Parent company | ||||||||||||
|
2012 | ||||||||||||
|
|
|
Assets |
|
Liabilities | ||||||||
|
Profit or Loss |
Current |
|
Non-current |
Total |
|
Current |
|
Non-current |
Total | |||
Profit or Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (mainly sales revenues) |
126,195 |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange and inflation indexation charges, net |
(1,957) |
|
|
|
|
|
|
|
|
|
|
|
|
Financial income (expenses), net |
(1,099) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
9,191 |
|
6,886 |
|
16,077 |
|
|
|
|
|
|
Trade and other receivables (mainly from sales) |
|
7,755 |
|
- |
|
7,755 |
|
|
|
|
|
| |
Dividends receivable |
|
|
1,001 |
|
- |
|
1,001 |
|
|
|
|
|
|
Intercompany loans |
|
|
- |
|
4,585 |
|
4,585 |
|
|
|
|
|
|
Capital increase (advance) |
|
|
- |
|
1,150 |
|
1,150 |
|
|
|
|
|
|
Related to construction of natural gas pipelines |
|
- |
|
741 |
|
741 |
|
|
|
|
|
| |
Reimbursements receivable |
|
|
- |
|
302 |
|
302 |
|
|
|
|
|
|
Other operations |
|
|
435 |
|
108 |
|
543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance leases |
|
|
|
|
|
|
|
|
(1,741) |
|
(5,973) |
|
(7,714) |
Financing on credit operations |
|
|
|
|
|
|
|
|
(1,509) |
|
(913) |
|
(2,422) |
Intercompany loans |
|
|
|
|
|
|
|
|
- |
|
(21,762) |
|
(21,762) |
Prepayment of exports |
|
|
|
|
|
|
|
|
(4,033) |
|
- |
|
(4,033) |
Accounts payable to suppliers |
|
|
|
|
|
|
|
|
(13,056) |
|
- |
|
(13,056) |
Purchases of crude oil, oil products and others |
|
|
|
|
|
|
|
(10,347) |
|
- |
|
(10,347) | |
Affreightment of platforms |
|
|
|
|
|
|
|
|
(1,658) |
|
- |
|
(1,658) |
Advances from clients |
|
|
|
|
|
|
|
|
(856) |
|
- |
|
(856) |
Others |
|
|
|
|
|
|
|
|
(195) |
|
- |
|
(195) |
Other operations |
|
|
|
|
|
|
|
|
(139) |
|
(82) |
|
(221) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In 2012 |
123,139 |
|
9,191 |
|
6,886 |
|
16,077 |
|
(20,478) |
|
(28,730) |
|
(49,208) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In 2011 |
115,380 |
|
14,306 |
|
11,840 |
|
26,146 |
|
(12,389) |
|
(9,837) |
|
(22,226) |
53
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
17.1.2 By company
|
Parent company |
|
|
|
|
|
|
|
|
|
| ||
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Liabilities |
|
|
|
|
|
Profit or Loss |
Current |
|
Non-current |
Total |
|
Current |
|
Non-current |
Total | |||
Subsidiaries (*) |
|
|
|
|
|
|
|
|
|
|
|
|
|
BR Distribuidora |
74,034 |
|
3,130 |
|
19 |
|
3,149 |
|
(298) |
|
(19) |
|
(317) |
PIB-BV Holanda |
20,084 |
|
1,266 |
|
4,381 |
|
5,647 |
|
(10,235) |
|
(22,675) |
|
(32,910) |
Gaspetro |
6,918 |
|
1,418 |
|
741 |
|
2,159 |
|
(1,755) |
|
- |
|
(1,755) |
PB-LOG |
2,005 |
|
204 |
|
- |
|
204 |
|
(292) |
|
- |
|
(292) |
Transpetro |
581 |
|
306 |
|
- |
|
306 |
|
(656) |
|
- |
|
(656) |
Refinaria Abreu e Lima |
341 |
|
228 |
|
591 |
|
819 |
|
- |
|
- |
|
- |
Thermoelectric power plants |
162 |
|
284 |
|
228 |
|
512 |
|
(99) |
|
(706) |
|
(805) |
Breitener Energética |
85 |
|
- |
|
45 |
|
45 |
|
- |
|
- |
|
- |
PNBV |
100 |
|
13 |
|
18 |
|
31 |
|
(1,954) |
|
- |
|
(1,954) |
Brasoil |
(227) |
|
447 |
|
6 |
|
453 |
|
(10) |
|
- |
|
(10) |
PIFCo |
(262) |
|
7 |
|
3 |
|
10 |
|
(2,901) |
|
- |
|
(2,901) |
Other subsidiaries |
2,865 |
|
911 |
|
715 |
|
1,626 |
|
(965) |
|
(886) |
|
(1,851) |
|
106,686 |
|
8,214 |
|
6,747 |
|
14,961 |
|
(19,165) |
|
(24,286) |
|
(43,451) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special purpose entities (SPE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nova Transportadora do Nordeste - NTN |
15 |
|
344 |
|
50 |
|
394 |
|
(280) |
|
(661) |
|
(941) |
CDMPI |
(60) |
|
- |
|
- |
|
- |
|
(289) |
|
(1,998) |
|
(2,287) |
Nova Transportadora do Sudeste - NTS |
(60) |
|
317 |
|
3 |
|
320 |
|
(245) |
|
(639) |
|
(884) |
PDET Off Shore |
(74) |
|
- |
|
62 |
|
62 |
|
(310) |
|
(1,083) |
|
(1,393) |
Other SPE's |
- |
|
- |
|
20 |
|
20 |
|
- |
|
- |
|
- |
|
(179) |
|
661 |
|
135 |
|
796 |
|
(1,124) |
|
(4,381) |
|
(5,505) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates |
|
|
|
|
|
|
|
|
|
|
|
|
|
Companies from the petrochemical sector |
16,617 |
|
304 |
|
- |
|
304 |
|
(109) |
|
(63) |
|
(172) |
Other Associates |
15 |
|
12 |
|
4 |
|
16 |
|
(80) |
|
- |
|
(80) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,632 |
|
316 |
|
4 |
|
320 |
|
(189) |
|
(63) |
|
(252) |
|
123,139 |
|
9,191 |
|
6,886 |
|
16,077 |
|
(20,478) |
|
(28,730) |
|
(49,208) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) It includes its subsidiaries and jointly controlled companies.
17.1.3 Rates for intercompany loans
Intercompany loans are charged at interest rates based on market parameters and pursuant to applicable regulations, as set out below:
|
|
Parent company | ||||||
|
|
Assets |
|
Liabilities | ||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Up to 7% p.a. |
|
4,307 |
|
9,103 |
|
(14,930) |
|
- |
Fom 7.01% to 10% p.a. |
|
- |
|
- |
|
(6,832) |
|
- |
From 10.01% to 13% p.a. |
|
1 |
|
276 |
|
- |
|
- |
More than 13% p.a. |
|
277 |
|
529 |
|
- |
|
- |
|
|
4,585 |
|
9,908 |
|
(21,762) |
|
- |
54
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
17.2 Non standardized receivables investment fund (FIDC-NP)
The Parent Company invests in the non-standardized receivables investment fund (FIDC-NP), which comprises mainly receivables and non-performing receivables arising from the operations performed by subsidiaries of the Petrobras Group.
Investments in government bonds made by the FIDC-NP are recognized as cash and cash equivalents or marketable securities, according to their expected realization terms.
Capitalized finance charges from the disposal of receivables and/or non-performing receivables are recognized as other current assets.
The assignment of receivables is recognized as other current assets, while they are not received. The assignment of non-performing receivables is recognized as current debt within current liabilities.
|
|
Parent company | ||
|
|
2012 |
|
2011 |
Short-term financial investments |
|
79 |
|
2,474 |
Marketable securities |
|
2,370 |
|
6,840 |
Deferred Finance charges |
|
86 |
|
153 |
Assignment of Receivables |
|
(1,154) |
|
(681) |
Total recognized within current assets |
|
1,381 |
|
8,786 |
|
|
- |
|
- |
Assignments of non-performing receivables |
|
(9,060) |
|
(9,639) |
Total recognized within current liabilities |
|
(9,060) |
|
(9,639) |
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
Finance income FIDC-NP |
|
802 |
|
210 |
Finance expense FIDC-NP |
|
(1,217) |
|
(1,202) |
Net finance income (expense) |
|
(415) |
|
(992) |
17.3 Guarantees Granted
Petrobras guarantees certain financial operations carried out by its subsidiaries abroad.
Petrobras, based on contractual clauses that support the financial operations between the subsidiaries and third parties, guarantees the payment of debt service in the event that a subsidiary defaults on a debt.
55
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
At December 31, 2012, the outstanding balance of financial operations carried out by these subsidiaries and guaranteed by Petrobras is set out below:
|
|
2012 |
|
2011 | ||||||||||||||
Maturity date of the loans |
|
PifCo |
|
PNBV |
|
TAG |
|
Ref. Abreu e Lima |
PGF |
|
PGT |
|
Other |
|
Total |
|
Total | |
2012 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
8,003 |
2013 |
|
3,830 |
|
3,109 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
6,939 |
|
782 |
2014 |
|
1,106 |
|
401 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,507 |
|
1,612 |
2015 |
|
2,554 |
|
2,438 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
4,992 |
|
2,264 |
2016 |
|
8,384 |
|
3,635 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
12,019 |
|
11,213 |
2017 |
|
4,107 |
|
2,500 |
|
- |
|
- |
|
- |
|
- |
|
613 |
|
7,220 |
|
3,468 |
2018 and thereafter |
|
41,154 |
|
21,872 |
|
11,825 |
|
10,647 |
|
6,877 |
|
6,130 |
|
511 |
|
99,016 |
|
67,025 |
|
|
61,135 |
|
33,955 |
|
11,825 |
|
10,647 |
|
6,877 |
|
6,130 |
|
1,124 |
|
131,693 |
|
94,367 |
17.4 Investment fund of subsidiaries abroad
At December 31, 2012, PGT BV had amounts invested in an investment fund abroad that held debt securities of other subsidiaries and special purpose entities of the Petrobras Group, related to the Company's projects, mainly Gasene, Malhas, CLEP and Marlim Leste (P-53), among other investments, in the amount of R$15,561 (R$ 14,527 at December 31, 2011, held by. PifCo and Brasoil).
17.5 Transactions with jointly controlled entities, associates, government entities and pension funds
The balances of significant transactions are set out in the table below:
|
Consolidated | ||||||
|
2012 |
|
2011 | ||||
|
Assets |
|
Liabilities |
|
Assets |
|
Liabilities |
|
|
|
|
|
|
|
|
Jointly controlled entities and associates |
1,593 |
|
1,220 |
|
1,549 |
|
783 |
Gas distributors |
912 |
|
442 |
|
876 |
|
355 |
Braskem and its subsidiaries |
311 |
|
222 |
|
163 |
|
134 |
Other jointly controlled entities and associates |
370 |
|
556 |
|
510 |
|
294 |
|
|
|
|
|
|
|
|
Government entities and pension funds |
49,933 |
|
71,334 |
|
42,922 |
|
68,063 |
Government bonds |
36,959 |
|
- |
|
26,486 |
|
- |
Banco do Brasil S.A. (BB) |
1,979 |
|
9,010 |
|
2,937 |
|
11,822 |
Judicial deposits (CEF and BB) |
5,453 |
|
- |
|
3,443 |
|
- |
Receivables from the electricity sector (note 17.6) |
3,958 |
|
- |
|
3,672 |
|
- |
Petroleum and alcohol account - Receivables from Federal government (note 17.7) |
835 |
|
- |
|
832 |
|
- |
BNDES |
7 |
|
47,868 |
|
7 |
|
40,891 |
Caixa Econômica Federal (CEF) |
- |
|
8,262 |
|
5,130 |
|
8,184 |
Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) |
- |
|
3,957 |
|
- |
|
3,869 |
Federal government - Dividends |
- |
|
977 |
|
- |
|
1,119 |
Petros (Pension fund) |
- |
|
334 |
|
- |
|
353 |
Others |
742 |
|
926 |
|
415 |
|
1,825 |
|
|
|
|
|
|
|
|
|
51,526 |
|
72,554 |
|
44,471 |
|
68,846 |
56
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
The classification of the transactions and their carrying amounts are set out below:
|
Consolidated | ||||||
|
2012 |
|
2011 | ||||
|
Assets |
|
Liabilities |
|
Assets |
|
Liabilities |
Current assets |
41,594 |
|
|
32,134 |
|
||
Cash and cash equivalents |
17,407 |
|
|
12,079 |
|
||
Marketable securities |
21,310 |
|
|
16,785 |
|
||
Trade and other receivables, net |
2,802 |
|
|
3,136 |
|
||
Other current assets |
75 |
|
|
134 |
|
||
|
|
|
|
- |
|
||
Non-current |
9,932 |
|
|
12,337 |
|
||
Petroleum and alcohol account - Receivables from Federal government |
835 |
|
|
832 |
|
||
Marketable securities |
274 |
|
|
5,638 |
|
||
Judicial deposits |
5,453 |
|
|
3,443 |
|
||
Other non-current assets |
3,370 |
|
|
2,424 |
|
||
|
|
- |
|
|
|||
Current liabilities |
|
10,827 |
|
|
11,677 | ||
Current debt |
|
2,959 |
|
|
4,726 | ||
Proposed dividends |
|
2,445 |
|
|
1,848 | ||
Other current liabilities |
|
5,423 |
|
|
5,103 | ||
|
|
- |
|
|
- | ||
Non-Current Liabilities |
|
61,727 |
|
|
57,169 | ||
Non-current debt |
|
61,333 |
|
|
56,786 | ||
Other non-current liabilities |
|
394 |
|
|
383 | ||
|
51,526 |
|
72,554 |
|
44,471 |
|
68,846 |
17.6 Receivables from the electricity sector
At December 31, 2012, the Company had a total amount of R$3,958 (R$ 3,672 at December, 31, 2011) of receivables from the Brazilian electricity sector, of which R$ 3,351 were classified as non-current assets after negotiations held during the year..
.
The Company supplies fuel to thermoelectric power plants located in the northern region of Brazil, which are direct or indirect subsidiaries of Eletrobras, the Federal Government electric energy company. Part of the costs for supplying fuel to these thermoelectric power stations is borne by the Fuel Consumption Account (Conta de Consumo de Combustível - CCC), managed by Eletrobras.
The Company also supplies fuel to Independent Power Producers (Produtores Independentes de Energia - PIE), which are companies created for the purpose of generating power exclusively for Amazonas Distribuidora de Energia S.A. - AME, a direct subsidiary of Eletrobras. The payment of amounts related to the fuel supplied is borne by AME, which transfers funds to the Independent Power Producers.
The balance of these receivables at December 31, 2012 was R$ 3,520 (R$ 3,217 at December 31, 2011), of which R$ 2,966 was past due (R$ 2,655 at December 31, 2011).
The Company has been using all available resources in order to recover these receivables and, following negotiations, Petrobras received R$ 1 billion on October 1, 2012 from AME.
The Company also has electricity supply contracts with AME signed in 2005 by its subsidiary Breitener Energética S.A., which, pursuant to the terms of the agreements, are considered a financial lease of the two thermoelectric power plants. The contracts determine the power plants be returned to AME at the end of the agreement period with no residual value (20-year term). The balance of these receivables was R$ 438 (R$ 455 at December, 31, 2011), none of which was overdue.
57
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
17.7 Petroleum and alcohol accounts - Receivables from Federal Government STN
At December 31, 2012, the balance of receivables related to the Petroleum and Alcohol accounts was R$ 835 (R$ 832 at December 31, 2011). Pursuant to Provisional Measure 2,181 of August 24, 2001, the Federal Government may settle this balance by using National Treasury Notes in an amount equal to the outstanding balance, or allow the Company to offset the outstanding balance against amounts payable to the Federal Government, including taxes payable, or both options.
The Company has provided all the information required by the National Treasury Secretariat (Secretaria do Tesouro Nacional - STN) in order to resolve disputes between the parties and conclude the settlement with the Federal Government.
Following several negotiation attempts at the administrative level, the Company decided to file a lawsuit in July 2011 related to collect the receivables.
17.8 Compensation of employees and officers
The criteria for compensation of employees and officers are established based on the current labor legislation and the Company’s policies related to Positions, Salaries and Benefits.
The compensation of employees (including those occupying managerial positions) and officers in the month of December 2012 and December 2011 were:
Amounts refer to monthly compensation in R$ |
|
Expressed in reais | ||
|
|
2012 |
|
2011 |
Compenstion per employee |
|
|
|
|
Lowest compensation |
|
2,324.30 |
|
2,024.49 |
Average compensation |
|
11,701.22 |
|
10,652.30 |
Highest compensation |
|
69,051.65 |
|
67,494.48 |
|
|
|
|
|
Compensation per officer of Petrobras (highest) |
|
86,052.59 |
|
81,289.05 |
Petrobras’ key management compensation (which comprises salaries and other short-term benefits) during 2012 was R$ 11.5 (R$ 12.5 in 2011, referring to seven officers and nine board members). At December 31, 2012 the Company had seven officers and ten board members.
In 2012 the compensation of board members and officers for the consolidated Petrobras group amounted to R$ 56.6 (R$ 45.0 in 2011).
As established in Brazilian Federal Law 12,353/2010, the Board of Directors of Petrobras is now composed of ten members, after the employees’ representative was confirmed in the Annual General Meeting of March 19, 2012.
58
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
18 Provision for decommissioning costs
|
Consolidated |
|
Parent company | ||||
Non-current liabilities |
2012 |
|
2011 |
|
2012 |
|
2011 |
Opening balance |
8,839 |
|
6,505 |
|
8,241 |
|
6,072 |
Revision of provision |
10,754 |
|
2,455 |
|
10,472 |
|
2,288 |
Use by payment |
(571) |
|
(488) |
|
(571) |
|
(328) |
Accrual of interest |
258 |
|
210 |
|
249 |
|
209 |
Others |
12 |
|
157 |
|
- |
|
- |
Closing balance |
19,292 |
|
8,839 |
|
18,391 |
|
8,241 |
19.1 Taxes and contributions
Current assets |
Consolidated |
|
Parent company | |||||
|
2012 |
|
2011 |
|
2012 |
|
2011 | |
Taxes in Brazil: |
|
|
|
|
|
|
| |
ICMS (VAT) |
3,152 |
|
3,186 |
|
2,439 |
|
2,016 | |
PIS/COFINS (taxation on revenues) |
4,657 |
|
5,146 |
|
4,284 |
|
4,766 | |
CIDE |
47 |
|
144 |
|
46 |
|
144 | |
Income tax |
2,328 |
|
2,251 |
|
1,722 |
|
1,692 | |
Social contribution |
237 |
|
615 |
|
109 |
|
521 | |
Other taxes |
395 |
|
422 |
|
236 |
|
233 | |
|
|
|
|
|
|
|
| |
|
10,816 |
|
11,764 |
|
8,836 |
|
9,372 | |
|
|
|
|
|
|
|
| |
Taxes abroad |
571 |
|
1,082 |
|
- |
|
- | |
|
11,387 |
|
12,846 |
|
8,836 |
|
9,372 | |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Non-current assets |
|
|
|
|
|
|
| |
Taxes in Brazil: |
|
|
|
|
|
|
| |
Deferred ICMS (VAT) |
1,845 |
|
2,199 |
|
1,704 |
|
1,742 | |
Deferred PIS and COFINS (taxation on revenues) |
8,279 |
|
6,543 |
|
5,745 |
|
4,592 | |
Others |
515 |
|
452 |
|
- |
|
- | |
|
10,639 |
|
9,194 |
|
7,449 |
|
6,334 | |
Taxes abroad |
34 |
|
20 |
|
- |
|
- | |
|
10,673 |
|
9,214 |
|
7,449 |
|
6,334 | |
|
|
|
|
|
|
|
| |
Current liabilities |
Consolidated |
|
|
|
Parent company |
| ||
Taxes in Brazil: |
2012 |
|
2011 |
|
2012 |
|
2011 | |
|
|
|
|
|
|
|
| |
ICMS (VAT) |
3,040 |
|
2,178 |
|
2,725 |
|
1,945 | |
PIS/COFINS (taxation on revenues) |
1,004 |
|
579 |
|
848 |
|
483 | |
CIDE |
34 |
|
477 |
|
34 |
|
472 | |
Special participation / Royalties |
5,363 |
|
5,142 |
|
5,363 |
|
5,142 | |
Withholding Income tax and social contribution |
1,155 |
|
831 |
|
1,059 |
|
787 | |
Current income tax and social contribution |
574 |
|
336 |
|
- |
|
- | |
Other taxes |
735 |
|
654 |
|
489 |
|
429 | |
|
11,905 |
|
10,197 |
|
10,518 |
|
9,258 | |
Taxes abroad |
617 |
|
772 |
|
- |
|
- | |
|
12,522 |
|
10,969 |
|
10,518 |
|
9,258 | |
59
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
19.2 Deferred income tax and social contribution - non-current
The nature of deferred income taxes recognized and the scheduling of the estimated timing of the reversal are set out in the tables below.
a) Changes in deferred income tax and social contribution
|
Changes in the deferred income tax and social contribution | ||||||||||||||||||||
|
Consolidated |
|
Parent Company | ||||||||||||||||||
|
Property, plant and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Exploration costs for the extraction of crude oil and natural gas |
Others |
|
Trade and other receivables / payables, loans and financing |
Finance leases |
|
Provision for legal proceedings |
Tax losses |
|
Inventories |
|
Interest on Capital |
Others |
|
Total |
|
Total | ||||
Balance at December 31, 2010 |
(17,482) |
|
(1,897) |
|
(1,852) |
|
(1,123) |
|
497 |
|
711 |
|
841 |
|
754 |
|
53 |
|
(19,498) |
|
(18,857) |
Recognized in profit or loss for the year |
(3,854) |
|
(2,321) |
|
815 |
|
(201) |
|
150 |
|
(57) |
|
349 |
|
133 |
|
(1,171) |
|
(6,157) |
|
(7,208) |
Recognized in shareholders' equity |
- |
|
- |
|
- |
|
44 |
|
- |
|
- |
|
- |
|
- |
|
(50) |
|
(6) |
|
(44) |
Cumulative translation adjustment |
- |
|
(100) |
|
(6) |
|
- |
|
15 |
|
32 |
|
- |
|
- |
|
(76) |
|
(135) |
|
- |
Others |
- |
|
186 |
|
246 |
|
(303) |
|
(33) |
|
(42) |
|
- |
|
- |
|
554 |
|
608 |
|
(128) |
Balance at December 31, 2011 |
(21,336) |
|
(4,132) |
|
(797) |
|
(1,583) |
|
629 |
|
644 |
|
1,190 |
|
887 |
|
(690) |
|
(25,188) |
|
(26,237) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in profit or loss for the year |
(4,542) |
|
(2,518) |
|
1,927 |
|
450 |
|
131 |
|
19 |
|
(235) |
|
1,268 |
|
(756) |
|
(4,256) |
|
(4,466) |
Recognized in shareholders' equity |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
149 |
|
149 |
|
165 |
Cumulative translation adjustment |
- |
|
220 |
|
(6) |
|
- |
|
(107) |
|
(392) |
|
- |
|
(9) |
|
(455) |
|
(749) |
|
- |
Others |
(27) |
|
73 |
|
23 |
|
(69) |
|
54 |
|
1,996 |
|
- |
|
- |
|
25 |
|
2,075 |
|
2,018 |
Balance at December 31, 2012 |
(25,905) |
|
(6,357) |
|
1,147 |
|
(1,202) |
|
707 |
|
2,267 |
|
955 |
|
2,146 |
|
(1,727) |
|
(27,969) |
|
(28,520) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets |
|
|
8,042 |
|
3,171 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
(33,230) |
|
(29,408) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2011 |
|
(25,188) |
|
(26,237) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets |
|
|
11,293 |
|
6,664 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities |
|
(39,262) |
|
(35,184) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2012 |
|
(27,969) |
|
(28,520) |
60
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
b) Timing of reversal of deferred income tax and social contribution
Management considers that the deferred tax assets will be recovered as provisions are settled and future events occur, both based on estimates that have been made.
The estimated recovery / reversal dates of net deferred tax assets (liabilities) recoverable (payable) is set out in the table below:
|
|
Deferred income tax and social contribution |
|
| ||||
|
|
Consolidated |
|
Parent Company | ||||
|
|
Assets |
|
Liabilities |
|
Assets |
|
Liabilities |
2013 |
|
3,935 |
|
3,316 |
|
3,075 |
|
1,718 |
2014 |
|
948 |
|
2,638 |
|
532 |
|
2,242 |
2015 |
|
1,084 |
|
2,530 |
|
516 |
|
2,247 |
2016 |
|
1,014 |
|
2,296 |
|
520 |
|
2,097 |
2017 |
|
1,960 |
|
3,060 |
|
1,381 |
|
2,861 |
2018 |
|
338 |
|
2,482 |
|
4 |
|
2,278 |
2019 |
|
247 |
|
2,219 |
|
15 |
|
1,988 |
2020 and thereafter |
|
1,767 |
|
20,721 |
|
621 |
|
19,753 |
Deferred tax credits recognized |
|
11,293 |
|
39,262 |
|
6,664 |
|
35,184 |
Deferred tax credits not recognized |
|
4,336 |
|
- |
|
- |
|
- |
Total |
|
15,629 |
|
39,262 |
|
6,664 |
|
35,184 |
At December 31, 2012, the Company had unused tax credits, for which no deferred tax assets have been recognized, in the amount of R$ 4,336 (R$ 1,563 at December 31, 2011) resulting from net operating tax losses mainly from oil and gas exploration and production activities in the United States in the amount of R$ 2,715 (R$ 1,199 at December 31, 2011), subject to a 20-year statute of limitations from the recognition of the losses based on the date the losses were recognized.
19.3 Reconciliation between tax expense and accounting profit
A numerical reconciliation between tax expense and the product of “income before income taxes” multiplied by the applicable statutory corporation tax rates is set out in the table below:
|
|
Consolidated |
|
Parent Company | ||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Income before taxes |
|
27,753 |
|
44,351 |
|
23,326 |
|
41,568 |
|
|
|
|
|
|
|
|
|
Income tax and social contribution computed based on Brazilian Statutory Corporation Tax Rates (34%) |
(9,436) |
|
(15,079) |
|
(7,931) |
|
(14,133) | |
|
|
- |
|
- |
|
- |
|
- |
Adjustments between income taxes based on Statutory Rates and on the Effective Tax Rate: |
|
|
|
|
|
| ||
· Tax benefit from the deduction of interest on capital from income |
|
3,172 |
|
3,548 |
|
3,018 |
|
3,548 |
|
|
|
|
|
|
|
|
|
· Results of companies abroad subject to different tax rates |
|
640 |
|
622 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
· Tax incentives |
|
110 |
|
386 |
|
6 |
|
87 |
|
|
|
|
|
|
|
|
|
· Carry-forward of tax losses |
|
(669) |
|
(588) |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
· Non-deductible expenses, net * |
|
(1,107) |
|
(466) |
|
1,967 |
|
1,528 |
|
|
|
|
|
|
|
|
|
· Tax credits of companies abroad in the exploration stage |
|
(4) |
|
(1) |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
· Others |
|
500 |
|
337 |
|
509 |
|
503 |
Income tax and social contribution expense |
|
(6,794) |
|
(11,241) |
|
(2,431) |
|
(8,467) |
|
|
|
|
|
|
|
|
|
Deferred income tax and social contribution |
|
(4,256) |
|
(6,157) |
|
(4,465) |
|
(7,208) |
Current income tax and social contribution |
|
(2,538) |
|
(5,084) |
|
2,034 |
|
(1,259) |
|
|
|
|
|
|
|
|
|
|
|
(6,794) |
|
(11,241) |
|
(2,431) |
|
(8,467) |
|
|
|
|
|
|
|
|
|
Effective Tax Rate |
|
24.5% |
|
25.3% |
|
10.4% |
|
20.4% |
* It includes share of profit of equity-accounted investments.
61
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
20 Employee benefits (Post-employment)
The carrying amounts of employee benefits (post-employment) are set out below:
|
|
Consolidated |
|
Parent company | ||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Liabilities |
|
|
|
|
|
|
|
|
Pension benefits |
|
6,149 |
|
5,059 |
|
5,637 |
|
4,568 |
Medical benefits |
|
14,414 |
|
13,021 |
|
13,519 |
|
12,125 |
|
|
20,563 |
|
18,080 |
|
19,156 |
|
16,693 |
|
|
|
|
|
|
|
|
|
Current |
|
1,610 |
|
1,427 |
|
1,518 |
|
1,341 |
Non-current |
|
18,953 |
|
16,653 |
|
17,638 |
|
15,352 |
The current balance relates to an estimate of the payments to be made in the next 12 months.
20.1 Pension plans in Brazil - Defined benefit and variable contribution
Fundação Petrobras de Seguridade Social (Petros) was established by Petrobras as a nonprofit legal entity under private law with administrative and financial autonomy.
a) Petros Plan - Fundação Petrobras de Seguridade Social
The Petros plan was established by Petrobras in July 1970 as a defined-benefit pension plan to provide post-retirement benefits for employees of the Company and its Brazilian subsidiaries in order to complement government social security benefits. The Petros Plan has been closed to new participants since September 2002.
Petros contracts with an independent actuary to perform an annual actuarial review of its costs using the capitalization method for most benefits. The employers (sponsors) make regular contributions in amounts equal to the contributions of the participants (active employees, assisted employees and retired employees), on a parity basis.
In the event an eventual deficit is determined, participants of the plan and employers (sponsors) shall cover this deficit, pursuant to Brazilian Law (Constitutional Amendment 20/1998 and Complementary Law 109/2001), on the basis of their respective proportions of regular contributions made to the plan during the year in which the deficit arose.
At December 31, 2012, the Terms of Financial Commitment (TFC), signed by Petrobras and Petros in 2008 comprise a balance of R$ 6,279 (R$ 6,008 in the Parent Company), including R$ 379 (R$ 362 in the Parent Company) related to interest expense due in 2013. The TCF are due in 20 years, with 6% p.a. semiannual coupon payments based on the updated balance. The carrying amount of R$ 5,974 related to crude oil and oil products pledged as security for the TFC are presented within inventories and replaced the long-term National Treasury Notes that were previously held as collateral in July 2012.
The employers' expected contributions to the plan for 2013 are R$ 919 (R$ 873 in the Parent Company).
62
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
b) Petros Plan 2 – Fundação Petrobras de Seguridade Social
Petros Plan 2 was established in July 2007 by the Company as a variable contribution plan recognizing past service costs for contributions for the period (from August 2002 to August 29, 2007) in which the Petros Plan was closed and the participants did not have a pension plan, or for those admitted during this period. The plan is open to new participants although there will no longer be payments relating to past service costs.
Certain elements of the Petros Plan 2 have defined benefit characteristics, primarily the coverage of disability and death risks, the guarantee of a minimum defined benefit and annuity. These actuarial commitments are treated as defined benefit components of the plan and are accounted for by applying the projected unit credit method. Contributions paid for actuarial commitments that have defined contribution characteristics are recognized in profit or loss and are intended to constitute a reserve for programmed retirement. The contributions for the portion of the plan with defined contribution characteristics were R$ 604 (R$ 490 in the Parent Company) in 2012.
The defined benefit portion of the contributions has been suspended from July 1st, 2012 to June30, 2013, as decided by the Deliberative Council of Petros, based on advice from by the actuarial consultants from Fundação Petros. Therefore, the entire contributions are being appropriated in the individual accounts of plan participants.
For 2013 the employers' expected contributions to the defined-benefit portion of the plan are R$ 737 (R$ 642 in the Parent Company).
20.2 Pension plans abroad –Defined benefit
The Company also sponsors pension plans of certain of its international subsidiaries, with defined contribution characteristics, including those in Argentina, Japan and other countries. Most of these plans are funded and their assets are held in trusts, foundations or similar entities governed by local regulations. The Company paid R$ 16 in 2012 as contributions to these plans.
20.3 Pension plans assets
Pension plans assets follow a long term investment strategy to meet the assessed risk profile of each different class of asset and provide for diversification to lower portfolio risk. The portfolio must comply with the Brazilian National Monetary Council regulations. Portfolio targets for the period between 2013 and 2017 are 40% to 60% in fixed-income securities, 30% to 45% in variable-income securities, 3% to 8% in real estate, up to 15% in loans to participants, 4% to 12% in structured finance projects and up to 3% in investments abroad.
63
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
The hierarchy of the fair values of the pension plan assets is set out below :
|
|
2012 |
|
2011 | ||||||||||
Class of Asset |
|
Prices quoted on an active market (Level 1) |
Valuation supported by observable prices (Level 2) |
Valuation without use of observable prices (Level 3) |
Total fair value (Levels 1, 2 and 3) |
% |
|
Total fair value (Levels 1, 2 and 3) |
% | |||||
Fixed income |
|
20,243 |
|
6,054 |
|
|
|
26,297 |
|
46% |
|
23,398 |
|
47% |
Corporate bonds |
|
|
|
5,914 |
|
|
|
5,914 |
|
|
|
7,075 |
|
|
Government bonds |
|
20,243 |
|
|
|
|
|
20,243 |
|
|
|
16,158 |
|
|
Other investments |
|
|
|
140 |
|
|
|
140 |
|
|
|
165 |
|
|
Variable income |
|
16,356 |
|
3,464 |
|
6,011 |
|
25,832 |
|
46% |
|
22,702 |
|
46% |
Common and preferred shares |
|
16,356 |
|
|
|
|
|
16,356 |
|
|
|
13,023 |
|
|
Private Equity funds |
|
|
|
2,389 |
|
6,009 |
|
8,398 |
|
|
|
9,533 |
|
|
Other investments |
|
|
|
1,076 |
|
2 |
|
1,078 |
|
|
|
146 |
|
|
Real estate properties |
|
|
|
|
|
2,769 |
|
2,769 |
|
5% |
|
1,800 |
|
4% |
|
|
|
|
|
|
|
|
54,898 |
|
97% |
|
47,900 |
|
97% |
Loans granted to participants |
|
|
|
|
|
|
|
1,673 |
|
3% |
|
1,441 |
|
3% |
|
|
|
|
|
|
|
|
56,571 |
|
100% |
|
49,341 |
|
100% |
At December 31, 2012, the investments include Petrobras’ common and preferred shares in the amount of R$ 725 and R$ 484, respectively, and real estate properties rented by the Company in the amount of R$ 355.
Loans to participants are measured at amortized cost, which is considered to be an appropriate estimate of fair value.
The real rate of return on investment expected, based on market expectations, is 5.56% p.a. for variable-income securities and structured investments, 3.75% p.a. for fixed-income securities and 4.02% p.a. for real estate properties and 6.0% p.a. for loans granted to participants, resulting in an average return of 4.6% p.a.
20.4Medical Benefits – Health Care Plan - Assistência Multidisciplinar de Saúde (“AMS”)
Petrobras and its subsidiaries operate a medical benefit plan for employees in Brazil (active and inactive) and their dependents: the AMS health care plan. The plan is managed by the Company and the employees make fixed monthly contributions to cover high-risk procedures and variable contributions for a portion of the cost of other procedures, as established in the contribution table of the plan based on certain parameters, such as salary levels. The plan includes assistance towards the purchase of certain medicines in certain registered drugstores throughout Brazil.
There are no assets held as collaterals for the plan. Benefits are paid and recognized by the Company as incurred by the participants.
20.5Net actuarial liabilities and expenses calculated by independent actuaries, and fair value of plans assets
Information regarding defined benefit plans, in Brazil and abroad, has been consolidated for presentation purposes as the actuarial assumptions are similar and total assets and liabilities regarding pension plans abroad are not significant. All pension plans have deficit (excess of benefit liabilities over plan assets).
64
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
a) Movement in the actuarial liabilities, in the fair value of the assets and in the amounts recognized in the statement of financial position
|
|
2012 |
2011 | |||||||||
|
|
Consolidated |
Parent company |
Consolidated | ||||||||
|
|
Pension plan |
|
|
|
Pension plan | ||||||
|
|
Defined benefit |
Variable contribution |
Health care plan |
Total |
Total |
Defined benefit | |||||
Movement in the present value of benefit obligation |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
| |||||
Benefit obligation at the beginning of the year |
|
62,073 |
1,464 |
15,475 |
79,012 |
73,499 |
55,242 | |||||
Interest cost: |
|
|
|
|
|
|
| |||||
· Terms of Financial Commitment |
|
591 |
- |
- |
591 |
563 |
605 | |||||
· Actuarial |
|
6,353 |
167 |
1,742 |
8,262 |
7,742 |
5,589 | |||||
Current service cost |
|
378 |
437 |
286 |
1,101 |
990 |
334 | |||||
Benefits paid |
|
(2,299) |
(6) |
(712) |
(3,017) |
(2,871) |
(2,057) | |||||
Actuarial (Gains) / Losses |
|
11,944 |
(455) |
436 |
11,925 |
11,295 |
2,352 | |||||
Others |
|
25 |
45 |
1 |
71 |
1,040 |
8 | |||||
Benefit obligation at the end of the year |
|
79,065 |
1,652 |
17,228 |
97,945 |
92,258 |
62,073 | |||||
|
|
|||||||||||
|
|
|||||||||||
Movement in the fair value of plan assets |
|
|||||||||||
|
|
|||||||||||
Plan assets at the beginning of the year |
|
49,015 |
326 |
- |
49,341 |
46,022 |
45,315 | |||||
Expected return on plan assets |
|
5,974 |
52 |
- |
6,026 |
5,680 |
5,532 | |||||
Contributions: Employers and Plan Participants |
|
888 |
96 |
712 |
1,696 |
1,607 |
819 | |||||
Amounts received relating to the Terms of Financial Commitment |
|
321 |
- |
- |
321 |
291 |
290 | |||||
Benefits paid |
|
(2,299) |
(6) |
(712) |
(3,017) |
(2,871) |
(2,057) | |||||
Actuarial Gains / (Losses) |
|
2,161 |
11 |
- |
2,172 |
2,038 |
(888) | |||||
Others |
|
17 |
15 |
- |
32 |
649 |
4 | |||||
Plan assets at the end of the year |
|
56,077 |
494 |
- |
56,571 |
53,416 |
49,015 | |||||
|
|
|||||||||||
Amounts recognized in the statement of financial position |
|
|||||||||||
|
|
|||||||||||
Present value of funded obligations |
|
79,065 |
1,652 |
- |
80,717 |
76,146 |
62,073 | |||||
(-) Fair value of the plan assets |
|
(56,077) |
(494) |
- |
(56,571) |
(53,416) |
(49,015) | |||||
Deficit of funded plans |
|
22,988 |
1,158 |
- |
24,146 |
22,730 |
13,058 | |||||
Present value of unfunded obligations |
|
- |
- |
17,228 |
17,228 |
16,112 |
- | |||||
Unrecognized actuarial gains/(losses) |
|
(17,898) |
55 |
(2,791) |
(20,634) |
(19,525) |
(8,530) | |||||
Unrecognized past service cost |
|
(67) |
(87) |
(23) |
(177) |
(161) |
(83) | |||||
Net actuarial obligations at December 31 |
|
5,023 |
1,126 |
14,414 |
20,563 |
19,156 |
4,445 | |||||
|
|
|
|
|
|
|
| |||||
Movement in net actuarial obligations |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
| |||||
Balance at January 1 |
|
4,445 |
614 |
13,021 |
18,080 |
16,693 |
4,510 | |||||
(+) Costs incurred during the year |
|
1,416 |
555 |
2,103 |
4,074 |
3,734 |
686 | |||||
(-) Employee Contributions |
|
(519) |
(43) |
(709) |
(1,271) |
(1,202) |
(479) | |||||
(-) Payments relating to the Terms of Financial Commitment |
|
(321) |
- |
- |
(321) |
(291) |
(290) | |||||
Others |
|
2 |
- |
(1) |
1 |
222 |
18 | |||||
Balance at December 31 |
|
5,023 |
1,126 |
14,414 |
20,563 |
19,156 |
4,445 | |||||
|
|
6,149 |
|
|
- |
5,059 | ||||||
|
|
|
|
|
|
|
|
|
65
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
b) Actuarial expenses, net
|
|
2012 |
|
2011 | ||||||||||||||||
|
|
Consolidated |
|
Parent company |
|
Consolidated |
|
Parent company | ||||||||||||
|
|
Pension plan |
|
|
|
|
|
|
|
Pension plan |
|
|
|
|
|
| ||||
|
|
Defined benefit |
Variable contribution |
Health care plan |
Total |
|
Total |
|
Defined benefit |
Variable contribution |
Health care plan |
Total |
|
Total | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current service cost |
|
378 |
|
437 |
|
286 |
|
1,101 |
|
990 |
|
334 |
|
334 |
|
244 |
|
912 |
|
820 |
Interest cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
· Terms of Financial Commitment |
|
591 |
|
- |
|
- |
|
591 |
|
563 |
|
605 |
|
- |
|
- |
|
605 |
|
571 |
· Actuarial |
|
6,353 |
|
167 |
|
1,742 |
|
8,262 |
|
7,742 |
|
5,589 |
|
83 |
|
1,551 |
|
7,223 |
|
6,747 |
Expected return on plan assets |
|
(5,974) |
|
(52) |
|
- |
|
(6,026) |
|
(5,680) |
|
(5,532) |
|
(36) |
|
- |
|
(5,568) |
|
(5,232) |
Amortization of actuarial (gains) / losses |
|
427 |
|
18 |
|
71 |
|
516 |
|
490 |
|
6 |
|
3 |
|
47 |
|
56 |
|
42 |
Contributions: Employers |
|
(383) |
|
(54) |
|
- |
|
(437) |
|
(405) |
|
(340) |
|
(29) |
|
- |
|
(369) |
|
(344) |
Past service cost |
|
23 |
|
7 |
|
4 |
|
34 |
|
33 |
|
24 |
|
8 |
|
4 |
|
36 |
|
33 |
Others |
|
1 |
|
32 |
|
- |
|
33 |
|
1 |
|
- |
|
(2) |
|
- |
|
(2) |
|
(2) |
Net costs for the year |
|
1,416 |
|
555 |
|
2,103 |
|
4,074 |
|
3,734 |
|
686 |
|
361 |
|
1,846 |
|
2,893 |
|
2,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related to active employees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in the cost of sales |
|
431 |
|
241 |
|
442 |
|
1,114 |
|
1,085 |
|
219 |
|
152 |
|
355 |
|
726 |
|
688 |
Operating expense recognized in profit or loss |
|
271 |
|
302 |
|
355 |
|
928 |
|
734 |
|
108 |
|
203 |
|
301 |
|
612 |
|
508 |
Related to retired employees |
|
714 |
|
12 |
|
1,306 |
|
2,032 |
|
1,915 |
|
359 |
|
6 |
|
1,190 |
|
1,555 |
|
1,439 |
Net cost for the year |
|
1,416 |
|
555 |
|
2,103 |
|
4,074 |
|
3,734 |
|
686 |
|
361 |
|
1,846 |
|
2,893 |
|
2,635 |
66
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
c) Difference between estimated and actual amounts incurred
The differences between estimated and actual amounts incurred in the last four years are set out in the table below:
|
|
|
Consolidated | ||||||
|
|
|
2012 |
|
2011 |
|
2010 |
|
2009 |
Pension plan gains/(losses) |
|
|
|
|
| ||||
|
Experience adjustments on pension plan liabilities |
|
6,840 |
(125) |
118 |
(381) | |||
|
Experience adjustments on pension plan assets |
|
2,169 |
(886) |
1,996 |
3,423 | |||
|
|
|
|
|
|
| |||
Medical plan gains/(losses) |
|
|
|
|
| ||||
|
Experience adjustments on medical plan liabilities |
|
3,381 |
1,320 |
414 |
663 | |||
d) Changes in assumed medical costs
The effect of a 100 bps. change in the assumed discount rate and medical cost trend rate is as set out below:
|
|
Consolidated | ||||||||||
|
|
Discount rate |
|
Medical costs | ||||||||
|
|
Pension |
|
Medical |
|
Medical | ||||||
|
|
100 bps |
|
100 bps |
|
100 bps |
|
100 bps |
|
100 bps |
|
100 bps |
|
|
increase |
|
decrease |
|
increase |
|
decrease |
|
increase |
|
decrease |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension obligation |
|
(9,960) |
|
12,636 |
|
(2,089) |
|
2,570 |
|
2,799 |
|
(2,259) |
Current service cost and interest cost |
|
5,187 |
|
6,330 |
|
(267) |
|
333 |
|
371 |
|
(287) |
Significant actuarial assumptions used by the independent actuary
|
|
2012 |
|
2011 | |
|
|
|
|
| |
|
|
|
|
| |
Discount rate |
|
Inflation 5.4% to 4.11% p.a (1) + Interest (2): 3.75% p.a (2a) / 3.81% p.a.(2b) |
Inflation 5.6% to 4.34% p.a (1) + Interest: 5.58% p.a (2) | ||
Salary growth rate |
|
Inflation 5.4% to 4.11% p.a.(1) + 2.105% (3a) to 3.370% p.a (3b) |
|
Inflation 5.6% to 4.34% p.a.(1) + 2.080% to 3.188% p.a | |
Expected return rate from the pension plan assets |
|
(3) |
|
Inflation 5.6% p.a. + interest: 6.49% p.a. | |
Turnover rate of medical plans |
|
0.700% p.a (4) |
|
0.652% p.a (4) | |
Turnover rate of pension plans |
|
Null |
|
Null | |
Variance assumed in medical and hospital costs |
|
11.74% to 4.11%p.a (5) |
|
8.96% to 4.34%p.a (5) | |
Mortality table |
|
AT 2000 sex specific. 30% smoothing coefficient - female(6) |
|
AT 2000, sex specific | |
Disability table |
|
TASA 1927 (7) |
|
TASA 1927 (7) | |
Mortality table for disabled participants |
|
Winklevoss, sex specific - 20% smoothing coefficient (8) |
|
AT 49, sex specific | |
(1) Expected Inflation curve based on market expectations: 5.40% and 5.50% for 2013 and 2014, respectively and flat at 4.11% afterwards (based on the Company’s average scenario)
(2) The Company uses a methodology for computing an equivalent real interest rate based on the term structure of long-term government bonds with the longest maturities, considering the maturity profile of the pension and medical benefits obligations.
(2a) Petros Plan – Petrobras Group and Petros Plan 2
(2b) AMS Plan
(3a) Petros Plan – Petrobras Group
(3b) Petros Plan 2
(4) Average turnover which varies according to age and time of service. Except for BR (1.603%) and Liquigas (7.640%) in 2012.
(5) Decreasing rate for medical and hospital costs indexed to the long-term projected inflation for the next 30 years.
(6) Except for Petros Plan 2, which was based on AT 2000 (80% male + 20% female) Mortality Table.
(7) Except for Petros Plan 2, which was based on Álvaro Vindas disability table (2012) and Adjusted Zimmermann (2011).
(8) Except for Petros Plan 2, which was based on AT49 Male Mortality Table for disabled.
67
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
20.6Other defined contribution plans
Petrobras, through its subsidiaries in Brazil and abroad, also sponsors defined contribution employee retirement plans. Contributions paid in 2012, in the amount of R$ 12 were recognized in profit or loss.
Profit sharing benefits comply with Brazilian legal requirements and those of the Brazilian Department of Coordination and Governance of State-Owned Enterprises (DEST), of the Ministry of Planning, Budget and Management, and by the Ministry of Mines and Energy, and are computed based on the consolidated income before profit sharing and non-controlling interests.
The Company has recognized a profit sharing liability in the amount of R$ 1,005 (R$ 1,560 in 2011), pursuant to these regulations, as set out below:
|
|
2012 |
Net income |
|
20,959 |
Profit sharing |
|
1,005 |
Net income before profit sharing - calculation basis |
|
21,964 |
Established percentage |
|
4.5% |
Profit sharing |
|
988 |
|
|
|
Profit sharing of companies in Brazil |
|
988 |
Profit sharing of companies abroad |
|
17 |
|
|
1,005 |
Profit sharing benefits for key management are subject to approval at the Annual General Meeting for 2013, in accordance with articles 41 and 56 of the Company’s bylaws and Brazilian federal regulations.
22.1 Share capital
At December 31, 2012, subscribed and fully paid share capital was R$ 205,392, represented by 7,442,454,142 outstanding common shares and 5,602,042,788 outstanding preferred shares, all of which are registered, book-entry shares with no par value.
Capital increase with reserves in 2012
The Extraordinary General Meeting, held jointly with the Annual General Meeting on March 19, 2012, approved a capital increase through capitalization of a portion of the profit reserve relating to tax incentives, recognized in 2011 in the amount of R$ 12 (in compliance with article 35, paragraph 1, of Ordinance 2,091/07 of the Ministry for National Integration), without issue of new shares (pursuant to article 169, paragraph 1, of Law 6,404/76). Share capital increased from R$ 205,380 to R$ 205,392.
68
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Capital increase with reserves in 2013
A proposal will be made to the Extraordinary General Meeting, to be held jointly with the Annual General Meeting in 2013 to increase capital through capitalization of a portion of the profit reserve for tax incentives established in 2012 of R$ 19. Share capital will increase from R$ 205,392 to R$ 205,411.
22.2 Additional paid-in capital
a) Incremental costs directly attributable to the issue of new shares
These include any transaction costs directly attributable to the issue of new shares, net of taxes.
b) Change in interest in subsidiaries
These include any excess of amounts paid/received over the carrying value of the interest acquired/disposed. Changes in ownership interest in subsidiaries that do not result in loss of control of the subsidiary are equity transactions.
22.3 Profit reserves
a) Legal reserve
The legal reserve represents 5% of the net income for the year, calculated pursuant to article 193 of the Brazilian Corporation Law.
b) Statutory reserve
The statutory reserve is appropriated by applying a minimum of 0.5% of the year-end share capital and is retained to fund technology research and development programs. The balance of this reserve may not exceed 5% of the share capital, pursuant to article 55 of the Company’s bylaws.
c) Tax incentives reserve
Government grants are recognized in profit or loss and are appropriated from retained earnings to the tax incentive reserve in the shareholders’ equity pursuant to article 195-A of Brazilian Corporation Law. This reserve may only be used to offset losses or increasing share capital.
In 2012, government grants of R$ 19 related to reinvestments, using income taxes benefits, for the development of the Northeast of Brazil (Superintendências de Desenvolvimento do Nordeste – SUDENE) and the Amazon region (SUDAM) were appropriated from profit or loss.
69
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
d) Profit retention reserve
Profit retention reserve shields funds intended for capital expenditures, primarily in oil and gas exploration and development activities, included in the capital budget of the Company, pursuant to article 196 of the Brazilian Corporation Law.
A retention of R$ 9,939, of which R$ 9,928 from 2012 profit and R$ 11 appropriated from retained earnings, was allocated to the annual investment program in the 2013 capital budget, which will be proposed and voted at the 2013 Annual General Meeting
22.4 Accumulated other comprehensive income
a) Cumulative translation adjustment
This account comprises all exchange differences arising from the translation of the financial statements of non-Brazilian Real subsidiaries, jointly controlled entities and associates (functional currency different than the Parent Company).
b) Other comprehensive income
This account comprises gains or losses arising from measurement at fair value of available-for-sale financial assets, cash flow hedges and deemed cost of petrochemical associates.
22.5 Dividends
Shareholders are entitled to receive minimum mandatory dividends (and/or interest on capital) of 25% of the adjusted net income for the year proportional to the number of common and preferred shares, pursuant to Brazilian Corporation Law.
Preferred shares have priority in case of capital returns and dividend distribution, which is based on the higher of 3% of the preferred shares’ net book value, or 5% of the preferred share capital.
Dividends for 2012 of R$ 8,876 are to be voted at the 2013 Annual General Meeting and are consistent with the rights granted to preferred shares in the bylaws of the Company and to the minimum mandatory dividend for common shares. Dividends proposed for 2012 represent 44.73% of the adjusted net income (adjusted in accordance with Brazilian Corporation Law), as 3% of the book value of shareholders’ equity regarding preferred shares stake was higher than the minimum mandatory dividend of 25% of the adjusted net income for the year.
An equal amount of dividends for common and preferred shares was proposed and approved in 2011 and represented 38.25% of the adjusted net income, as 3% of the book value of shareholders’ equity regarding preferred shares stake was higher than the minimum mandatory dividend.
70
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Adjusted net income for dividend purposes is computed as set out below:
|
|
2012 |
|
2011 | |
|
|
|
|
| |
Net income for the year (Parent company) |
|
20,895 |
|
33,101 | |
Allocation: |
|
|
|
| |
Legal reserve |
|
(1,045) |
|
(1,655) | |
Tax incentive reserve |
|
(19) |
|
(81) | |
Other reversals/additions: |
|
11 |
|
10 | |
|
|
|
|
| |
Basic profit for determining dividend |
|
19,842 |
|
31,375 | |
|
|
|
|
| |
Proposed dividends, equivalent to 44.73% of the basic profit - R$ 0.47 per common share and R0.96 per preferred share, (38.25 % in 2011, R$ 0.92 per common and preferred share) as follows: |
- |
|
- | ||
Interest on capital |
|
8,876 |
|
10,436 | |
Dividends |
|
- |
|
1,565 | |
|
|
|
|
| |
Total proposed dividends |
|
8,876 |
|
12,001 | |
|
|
|
|
| |
Less: |
|
|
|
| |
|
|
- |
|
- | |
Interim distributions of interest on capital |
|
(2,609) |
|
(7,827) | |
Updating of interim distribution of interest on capital |
|
(113) |
|
(296) | |
Balance of proposed dividends |
|
6,154 |
|
3,878 | |
Dividends proposed for 2012 comprise interest on capital of R$ 8,876 and were approved by the Board of Directors, as set out below:
|
|
|
|
|
|
|
|
Common Share (ON) |
|
Preferred Share (PN) |
|
| ||||
Payment |
|
Date of approval by Board of Directors |
Date of Record |
|
Date of Payment |
|
Amount |
|
Amount per Share (Pre-Tax) |
Amount |
|
Amount per Share (Pre-Tax) |
Total Amount | |||
1st payment of interest on capital |
|
04.27.2012 |
|
05.11.2012 |
|
05.31.2012 |
|
1,489 |
|
0.20 |
|
1,120 |
|
0.20 |
|
2,609 |
2nd payment of interest on capital |
|
02.04.2013 |
|
|
|
|
|
2,009 |
|
0.27 |
|
4,258 |
|
0.76 |
|
6,267 |
|
|
|
|
|
|
|
|
3,498 |
|
0.47 |
|
5,378 |
|
0.96 |
|
8,876 |
Interim distributions of interest on capital in 2012 will be deducted from the distribution to be made at the close of fiscal year 2012 and indexed based on the SELIC rate from the date of payment to December 31, 2012. The remaining amount of interest on capital will be indexed based on the SELIC rate from December 31, 2012 to the date of payment, which will be voted at the 2013 Annual General Meeting.
Interest on capital is subject to a withholding income tax rate of 15%, except for shareholders that are declared immune or exempt, pursuant to Law 9,249/95. Interest on capital is a form of dividend distribution, which is deductible for tax purposes in Brazil and is included in the dividend distribution for the year, as established in the Company’s bylaws. The tax credit from the deduction of interest on capital is recognized in profit or loss. An amount of R$ 3,018 was recognized in 2012 (R$ 3,548 in 2011) relating to tax benefits from the deduction of interest on capital. For accounting purposes, shareholders’ equity is reduced in a manner similar to a dividend, pursuant to CVM Deliberation 207/96.
71
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
22.6 Earnings per Share
|
|
Consolidated |
|
Parent company | ||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Net income attributable to Shareholders of Petrobras |
|
21,182 |
|
33,313 |
|
20,895 |
|
33,101 |
Weighted average number of common and preferred shares in issue |
13,044,496,930 |
|
13,044,496,930 |
|
13,044,496,930 |
|
13,044,496,930 | |
Basic and diluted earnings per common and preferred share ( R$ per share) |
1.62 |
|
2.55 |
|
1.60 |
|
2.54 | |
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
Gross sales |
344,976 |
|
306,234 |
|
276,935 |
|
241,042 |
Sales taxes |
(63,597) |
|
(62,058) |
|
(59,589) |
|
(57,221) |
Sales revenues |
281,379 |
|
244,176 |
|
217,346 |
|
183,821 |
24 Other operating expenses, net
|
Consolidated |
|
|
|
Parent Company | ||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Pension and medical benefits |
(2,032) |
|
(1,555) |
|
(1,915) |
|
(1,439) |
Unscheduled stoppages and pre-operating expenses |
(1,678) |
|
(1,466) |
|
(1,619) |
|
(1,097) |
Institutional relations and cultural projects |
(1,518) |
|
(1,439) |
|
(1,354) |
|
(1,275) |
Inventory write-down to net realizable value (market value) |
(1,465) |
|
(1,046) |
|
(420) |
|
(227) |
Losses / Gains on legal and administrative proceedings |
(1,392) |
|
213 |
|
(1,014) |
|
240 |
Expenses related to collective bargaining agreement |
(902) |
|
(700) |
|
(798) |
|
(655) |
Expenditures on health, safety and environment |
(568) |
|
(772) |
|
(531) |
|
(649) |
Impairment |
(281) |
|
(664) |
|
(70) |
|
(412) |
Government grants |
755 |
|
615 |
|
54 |
|
187 |
Expenditures/reimbursements from operations in E&P partnerships |
545 |
|
16 |
|
472 |
|
16 |
Others |
341 |
|
210 |
|
(50) |
|
(459) |
|
(8,195) |
|
(6,588) |
|
(7,245) |
|
(5,770) |
72
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
25 Expenses by nature
|
Consolidated |
Parent Company | |||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
Raw material / products for resale |
(121,064) |
|
(95,484) |
|
(95,627) |
|
(68,529) |
Production taxes |
(31,301) |
|
(27,205) |
|
(30,398) |
|
(26,507) |
Employee Benefits |
(23,625) |
|
(20,464) |
|
(18,611) |
|
(16,153) |
Depreciation, depletion and amortization |
(21,766) |
|
(17,739) |
|
(15,738) |
|
(12,902) |
Changes in inventories |
1,297 |
|
8,782 |
|
2,479 |
|
7,243 |
Freight, rent, third-party services and other related costs |
(40,238) |
|
(39,768) |
|
(35,781) |
|
(30,853) |
Exploration expenditures written off (includes dry wells and signature bonuses written off) |
(5,628) |
|
(2,504) |
|
(5,268) |
|
(2,243) |
Taxes expenses |
(760) |
|
(777) |
|
(338) |
|
(278) |
Losses / Gains on legal and administrative proceedings |
(1,392) |
|
213 |
|
(1,014) |
|
240 |
Institutional relations and cultural projects |
(1,518) |
|
(1,439) |
|
(1,354) |
|
(1,275) |
Unscheduled stoppages and pre-operating expenses |
(1,678) |
|
(1,466) |
|
(1,619) |
|
(1,097) |
Expenditures on health, safety and environment |
(568) |
|
(772) |
|
(531) |
|
(649) |
Inventory write-down to net realizable value (market value) |
(1,465) |
|
(1,046) |
|
(420) |
|
(227) |
Impairment |
(281) |
|
(664) |
|
(70) |
|
(412) |
|
(249,987) |
|
(200,333) |
|
(204,290) |
|
(153,642) |
|
|
|
|
|
|
|
|
Cost of sales |
(210,472) |
|
(166,939) |
|
(167,882) |
|
(124,320) |
Selling expenses |
(9,604) |
|
(8,950) |
|
(11,819) |
|
(9,915) |
General and administrative expenses |
(9,842) |
|
(8,647) |
|
(6,843) |
|
(6,029) |
Exploration costs |
(7,871) |
|
(4,428) |
|
(7,131) |
|
(3,674) |
Research and development expenses |
(2,238) |
|
(2,444) |
|
(2,217) |
|
(2,361) |
Other taxes |
(760) |
|
(777) |
|
(338) |
|
(278) |
Other operating expenses, net |
(8,195) |
|
(6,588) |
|
(7,245) |
|
(5,770) |
Profit sharing |
(1,005) |
|
(1,560) |
|
(815) |
|
(1,295) |
|
(249,987) |
|
(200,333) |
|
(204,290) |
|
(153,642) |
26 Net finance income (expense)
|
Consolidated |
|
Parent company | ||||
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
Foreign exchange and inflation indexation charges on net debt (*) |
(6,585) |
|
(4,803) |
|
(4,164) |
|
(961) |
Expenses on debt |
(10,067) |
|
(8,146) |
|
(5,881) |
|
(6,114) |
Income from investments and marketable securities |
3,322 |
|
4,906 |
|
3,618 |
|
4,421 |
Financial result on net debt |
(13,330) |
|
(8,043) |
|
(6,427) |
|
(2,654) |
|
|
|
|
|
|
|
|
Capitalized borrowing costs |
7,430 |
|
7,361 |
|
5,378 |
|
5,823 |
Gains (losses) on derivatives |
(89) |
|
(387) |
|
90 |
|
(124) |
Income from marketable securities |
1,862 |
|
480 |
|
2,019 |
|
1,108 |
Other finance expenses and income, net |
834 |
|
(93) |
|
747 |
|
620 |
Other foreign exchange and indexation charges, net |
(430) |
|
804 |
|
(118) |
|
808 |
Finance income (expenses), net |
(3,723) |
|
122 |
|
1,689 |
|
5,581 |
|
|
|
|
|
|
|
|
Finance income (expenses), net (**) |
|
|
|
|
|
|
|
Income |
7,241 |
|
6,543 |
|
6,928 |
|
6,025 |
Expenses |
(3,950) |
|
(2,422) |
|
(957) |
|
(291) |
Foreign exchange and inflation indexation charges, net |
(7,014) |
|
(3,999) |
|
(4,282) |
|
(153) |
|
(3,723) |
|
122 |
|
1,689 |
|
5,581 |
(*) It includes indexation charges on debt in local currency indexed to the U.S. dollar.
73
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
27 Provisions for legal proceedings, contingent liabilities and contingent assets
The Company is a defendant in numerous legal proceedings involving tax, civil, labor, corporate and environmental issues. Based on legal advice and management’s best estimates, the Company reviews whether it is probable that an outflow of resources embodying economic benefits will be required to set the obligations.
27.1 Provisions for legal proceedings
Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Significant proceedings, for which the Company has recognized a provision, mainly include: (i) withholding of income taxes for securities issued outside Brazil; (ii) losses and damages resulting from the cancellation of an assignment of excise tax (IPI) credits to a third party; and (iii) fishermen seeking indemnification from the Company for a January 2000 oil spill in the State of Rio de Janeiro.
In addition, the Federal Public Attorney’s Office and the Public Attorney’s Office of the State of Paraná filed lawsuits against Petrobras demanding compensation for moral damages, financial damages and environmental recovery due to oil spillages: (i) in Terminal São Francisco do Sul – Refinaria Presidente Vargas, on July 16, 2000, for which a provision was recognized in 2011 and its updated amount at December 2012 is R$ 70; and (ii) in the Araucária – Paranaguá pipeline (OLAPA), at the headwaters of Rio do Meio, in the town of Morretes – State of Paraná, on February 16, 2001. This legal proceeding resulted in a settlement agreement signed on April 26, 2012, for which a provision was recognized in March, 2012 in the amount of R$ 106, R$ 94 of which were paid in May, 2012 and R$ 12 are still recognized as a provision, in order to support the expenses to recover the area.
The Company has provisions for legal proceedings in the amounts set out below:
|
Consolidated |
|
Parent company | ||||
Non-current liabilities |
2012 |
|
2011 |
|
2012 |
|
2011 |
Labor claims |
687 |
|
364 |
|
542 |
|
202 |
Tax claims |
696 |
|
664 |
|
20 |
|
12 |
Civil claims |
1,050 |
|
901 |
|
857 |
|
739 |
Environmental claims |
128 |
|
82 |
|
85 |
|
62 |
Other claims |
24 |
|
30 |
|
- |
|
- |
|
2,585 |
|
2,041 |
|
1,504 |
|
1,015 |
|
|
Consolidated |
|
Parent company | ||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Opening balance |
|
2,041 |
|
1,606 |
|
1,015 |
|
766 |
Additional provisions |
|
1,256 |
|
588 |
|
880 |
|
336 |
Amounts used during the year (payment) |
|
(859) |
|
(206) |
|
(590) |
|
(118) |
Accretion expense |
|
199 |
|
72 |
|
199 |
|
87 |
Others |
|
(52) |
|
(19) |
|
- |
|
(56) |
Closing balance |
|
2,585 |
|
2,041 |
|
1,504 |
|
1,015 |
74
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
27.2 Judicial Deposits
Judicial deposits made in connection with legal proceedings and guarantees are set out in the table below according to the nature of the corresponding lawsuits:
|
|
Consolidated |
|
Parent company | ||||
Non-current assets |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Labor |
|
1,775 |
|
1,203 |
|
1,611 |
|
1,087 |
Tax |
|
2,932 |
|
2,085 |
|
2,357 |
|
1,781 |
Civil |
|
653 |
|
509 |
|
566 |
|
444 |
Environmental |
|
142 |
|
98 |
|
142 |
|
98 |
Others |
|
8 |
|
7 |
|
- |
|
- |
Total |
|
5,510 |
|
3,902 |
|
4,676 |
|
3,410 |
27.3 Contingent Liabilities for legal proceedings
which the likelihood of loss is considered to be possible are not recognized in the financial statements but are disclosed unless the expected outflow of resources embodying economic benefits is considered remote.
The estimated contingent liabilities regarding legal proceedings which the likelihood of loss is considered to be possible is set out in the table below.
|
|
Consolidated |
Nature |
|
Estimate |
|
|
|
Tax |
|
50,549 |
Civil - General |
|
4,944 |
Labor |
|
2,652 |
Civil - Environmental |
|
665 |
Others |
|
8 |
|
|
58,818 |
A brief description of the nature of the main contingent liabilities (tax and civil) are set out in the tables below:
a) Tax Proceedings
Description of tax proceedings |
|
Estimate | ||
|
|
| ||
Plaintiff: Secretariat of the Federal Revenue of Brazil |
|
| ||
1) Deduction of expenses from the renegotiation of the Petros Plan from the calculation basis of | ||||
income tax (IRPJ) and social contribution (CSLL) and penalty charged. |
|
| ||
Current status: Awaiting the hearing of an appeal at the administrative level. |
|
4,341 | ||
2) Profits of subsidiaries and associates domiciled abroad in the years of 2005, 2006, 2007 and 2008 not | ||||
included in the calculation basis of IRPJ and CSLL. |
|
| ||
Current status: Awaiting the hearing of an appeal at the administrative level. |
|
3,395 | ||
3) Deduction from the calculation basis of IRPJ and CSLL of expenses incurred in 2007 related to employee | ||||
benefits and Petros. |
|
| ||
Current status: This claim is being disputed at the administrative level. |
|
1,642 | ||
4) Withhold income tax (IRRF) and Contribution of Intervention in the Economic Domain (CIDE) over | ||||
remittances for payment of platforms' affreightment. |
|
| ||
Current status: This claim involves lawsuits in different administrative and judicial stages, in which | ||||
the Company is taking legal actions to ensure its rights. |
|
9,109 | ||
5) Non payment of CIDE on imports of naphtha. |
|
| ||
Current status: This claim is being discussed at the administrative level. |
|
3,518 | ||
75
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Description of tax proceedings |
|
Estimate | ||
|
|
| ||
6) Non-payment of CIDE in the period from March 2002 until October 2003 in transactions with distributors and | ||||
service stations that were holders of judicial injunctions that determined the sale of gas without the | ||||
gross-up of such tax. |
|
| ||
Current status: Awaiting the hearing of an appeal in the Higher Chamber of Tax Appeals (CSRF). |
1,456 | |||
7) Non-payment of tax on financial operations (IOF) on intercompany loans. |
|
| ||
Current situation: Awaiting a hearing of an appeal at the administrative instance. |
3,602 | |||
8) Withhold income tax (IRRF) over remittances abroad for payment of petroleum imports. | ||||
Current status: Awaiting the hearing of an appeal at the administrative level. |
|
3,824 | ||
|
|
| ||
Plaintiff: State Finance Department of Rio de Janeiro 9) ICMS on exit operations of liquid natural gas (LNG) without issuing a tax document in the ambit of the centralizing establishment. | ||||
9) ICMS on exit operations of liquid natural gas (LNG) without issuance of tax document | ||||
by the main establishment. |
|
| ||
Current status: This claim involves lawsuits in different administrative and judicial stages, in which | ||||
the Company is taking legal actions to ensure its rights. |
|
2,845 | ||
10) Dispute over ICMS tax levy in operations of sale of aviation jet fuel, as Decree 36.454/2004 was declared | ||||
as unconstitutional. |
|
| ||
Current status: This claim is being disputed at the administrative level and the company has presented its defense. | ||||
|
|
1,621 | ||
|
|
| ||
Plaintiff: State Finance Department of São Paulo |
|
| ||
11) Dispute over ICMS tax levy on the importing of a drilling rig – temporary admission in São Paulo | ||||
and clearance in Rio de Janeiro and a fine for breach of accessory obligations. |
| |||
Current status: One of the legal proceedings is in its administrative stage and the other one was submitted | ||||
to judicial dispute, in which the Company has obtained a favorable decision. |
|
4,258 | ||
|
|
| ||
Plaintiff: Municipal governments of Anchieta, Aracruz, Guarapari, Itapemirim, Marataízes, Linhares, Vila Velha, | ||||
Vitória and Maragogipe. |
|
| ||
12) Failure to withhold and collect tax on services provided offshore (ISSQN) in some municipalities located | ||||
in the State of Espírito Santo, despite Petrobras having made the withholding and payment of these taxes to | ||||
the municipalities where the respective service providers are established, in accordance with | ||||
Complementary Law No. 116/03. |
|
| ||
Current status: This claim involves lawsuits in different administrative and judicial stages, in which | ||||
the Company is taking legal actions to ensure its rights. |
|
1,899 | ||
|
|
| ||
Plaintiff: State Finance Departments of Rio de Janeiro and Sergipe |
|
| ||
13) Use of ICMS tax credits on the purchase of drilling bits and chemical products used in formulating | ||||
drilling fluid. |
|
| ||
Current status: This claim involves lawsuits in different administrative and judicial stages, in which | ||||
the Company is taking legal actions to ensure its rights. |
|
944 | ||
14) Other tax proceedings |
|
8,095 | ||
|
|
| ||
Total for tax proceedings |
|
50,549 | ||
76
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
b) Civil Proceedings – General
Description of civil proceedings |
|
Estimate |
|
|
|
Plaintiff: Agência Nacional de Petróleo, Gás Natural e Biocombustíveis - ANP |
|
|
1) Dispute on differences in the payment of special participation charge in fields of the Campos Basin. | ||
In addition, the plaintiff is claiming fines for alleged non-compliance with minimum exploratory | ||
programs. Administrative proceedings are in course in connection with alleged irregularities in the | ||
platforms' measurement system. |
|
|
Current status: This claim involves processes in different administrative and judicial stages, in which the | ||
Company is taking legal actions to ensure its rights. |
|
1,860 |
2) Other civil proceedings |
|
3,084 |
|
|
|
Total for civil proceedings |
|
4,944 |
c) Other Proceedings
Plaintiff: Porto Seguro Imóveis Ltda.
On August 28, 2012, the Superior Court (STJ), unanimously upheld the special appeal filed by Petrobras, dismissing the plaintiff's claims. Porto Seguro Imóveis Ltda., a former minority shareholder of Petroquisa, filed a lawsuit related to alleged losses suffered as a result of the disposal of Petroquisa's interest in various petrochemical companies included in the National Privatization Program. Based on the aforementioned decision, the possibility of an outflow of resources related to this contingent liability, in the amount of R$ 8,165 was reassessed as remote.
27.4 Joint Ventures - Frade field
In November 2011, there was an oil spillage in the Frade field operated by Chevron Brasil, located in the Campos basin. Chevron Brasil, Chevron Latin America Marketing LLC and Transocean Brasil Ltda are being sued for R$ 20 billion in environmental damages by the federal public attorney’s office. Transocean Brasil Ltda. operated the rig at Frade at the time of this spillage.
In April 2012, a new lawsuit was filed by the Federal Public Attorney’s Office against Chevron and Transocean, due to new leaks on the seabed of the Frade field. In this suit the Federal Public Attorney’s Office pleads to a further R$ 20 billion as compensation for damages.
The assessment by the Company’s lawyers is that the amounts claimed are not reasonable and are disproportionately high in relation to the extent of the damages caused. In the second lawsuit, as the oil was not identified on the surface, the existence of any actual damage to the community is inconceivable.
Although the Company is not being sued, due to its 30% ownership interest in the Frade consortium, Petrobras may be contractually obliged to pay 30% of the total contingencies related to the incidents that occurred in the Frade field. In the event Chevron is held legally responsible, Petrobras may be contractually subject to the payment of up to 30% of the costs of the damages.
77
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
27.5 Contingent assets
27.5.1 Recovery of maintenance/replacement costs – Barracuda & Caratinga
In 2006, Petrobras, as representative of Barracuda & Caratinga Leasing Company B.V. (BCLC), pursuant to the provisions of EPC Contract, submitted a matter for arbitration in New York against Kellog, Brown & Root, Inc – KBR, demanding payment of indemnification in the amount of approximately R$ 339 plus interest for the costs of monitoring and replacing defective stud bolts and anchor bolts incurred on subsea oilfield flowlines in the Barracuda and Caratinga field, under the contractual guarantee period as well as costs and expenses of the arbitration.
On September 21, 2011, the arbitration court awarded BCLC, as pleaded in the arbitration, the full amount of R$ 339 and condemned KBR to pay almost the entirety costs incurred by Petrobras in the arbitration, including internal costs, legal fees and other arbitration costs. After the decision, the Company recognized the amount of R$ 339 as a non-current asset.
In December 2012, Halliburton, as KBR guarantor, negotiated with BCLC to pay R$ 446, in order to settle the arbitration. This amount was paid on January 11, 2013.
27.5.2 Recovery of PIS and COFINS
Petrobras and its subsidiaries filed a civil suit against the Federal Government claiming to recover, through offsetting, amounts paid as taxes on financial revenue and exchange gains (PIS) in the period between February 1999 and November 2002 and COFINS between February 1999 and January 2004 claiming that paragraph 1 of article 3 of Law 9,718/98 is unconstitutional.
On November 9, 2005, the Federal Supreme Court declared such paragraph as unconstitutional.
On November 18, 2010, the Superior Court of Justice upheld the claim filed by Petrobras in 2006 to recover the COFINS for the period from January 2003 to January 2004. Petrobras then recognized the amount of R$ 497 (R$ 349 in the Parent Company) as recoverable taxes in its non-current assets.
At December 31, 2012, the Company had R$ 2,216 (R$ 2,135 in the Parent Company) related to this lawsuit that are not yet recognized in the financial statements due to the lack of final favorable decision.
27.5.3 Legal proceeding in the United States - P-19 and P-31
In 2002, Braspetro Oil Service Company (Brasoil) and Petrobras obtained a favorable decision in related lawsuits filed before U.S. courts by the insurance companies United States Fidelity & Guaranty Company and American Home Assurance Company in which they were seeking to obtain (since 1997 and regarding Brasoil) a judicial order exempting them from their payment obligations under the performance bond related to platforms P- 19 and P-31, and seeking reimbursement from Petrobras for any amounts for which they could ultimately be held liable in the context of the execution proceedings of such performance bond.
On July 21, 2006, the U.S. courts issued an executive decision, conditioning the payment of the amounts owed to Brasoil to a definitive dismissal of the legal proceedings involving identical claims that are currently in course before Brazilian courts.
78
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Brasoil, Petrobras and the insurance companies already pleaded the dismissal of the Brazilian legal proceedings but their definitive dismissal is awaiting the hearing of an appeal filed by the platforms’ shipbuilding company before the Superior Court for Non-Constitutional Matters (STJ).
In 2012 the Company intensified actions taken, in an attempt to settle this lawsuit. The amount of damages pleaded is of approximately US$ 245 million.
28 Natural Gas Purchase Commitments
Petrobras has entered into an agreement with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) to purchase 201.9 billion m3 of natural gas during the term of the agreement and to purchase minimum annual volume commitment at a price calculated based on a formula comprising the price of fuel oil. The agreement is valid until 2019, renewable until the total volume commitment has been consumed.
At December 31, 2012, the minimum purchase commitment from 2013 to 2019 is approximately 61.5 billion m3 of natural gas, equivalent to 24.06 million m3 per day, which corresponds to an estimated amount of US$ 17.90 billion.
29 Guarantees for concession agreements for petroleum exploration
The Company has guarantees for the Minimum Exploration Programs established in the concession agreements for exploration of areas by the Agência Nacional de Petróleo, Gás Natural e Biocombustíveis (“ANP”) in the total amount of R$ 6,404, of which R$ 5,626 are still in force, net of commitments that have been undertaken. The guarantees comprise crude oil from previously identified producing fields, pledged as security, with a value of R$ 3,194 and bank guarantees in the amount of R$2,432.
30 Risk management and derivative instruments
The Company is exposed to a variety of risks arising from its operations: market risk (including price risk related to crude oil and oil products, foreign exchange risk and interest rate risk), credit risk and liquidity risk.
30.1 Risk management
The objective of the overall risk management policy of the Company is to achieve an appropriate balance between growth, increased return on investments and risk exposure level, which can arise from its normal activities or from the context within which the Company operates, so that, through effective allocation of its physical, financial and human resources it may achieve its strategic goals.
Risk management is carried out by a Financial Integration Committee set up by the Executive Board to evaluate and establish guidelines for measuring, monitoring, and managing the risks periodically and to support the Board decisions. This Committee is always composed of the executive managers of the finance department. Executive managers of different business areas are convened to discuss specific matters.
79
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
30.2 Market risk
30.2.1 Risk management of price risk (related to crude oil and oil products)
Petrobras does not use derivative instruments to hedge exposures to commodity price cycles related to products purchased and sold to fulfill operational needs.
Derivatives are used as hedging instruments to manage the price risk of certain transactions carried out abroad, which are usually short-term transactions similar to commercial transactions.
The main risk management techniques used by the Company to manage price risk of crude oil and oil products, in the transactions carried out abroad, are: operating cash flow at risk (CFAR), Value at Risk (VAR) and Stop Loss.
a) Notional amount, fair value and guarantees of crude oil and oil products derivatives
|
|
|
Consolidated |
|
| ||||||
|
|
|
Notional value |
|
|
|
|
|
| ||
|
|
|
(in thousands of bbl)* |
|
Fair value ** |
Maturity | |||||
Statement of Financial Position |
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Futures contracts |
|
|
(3,380) |
|
(6,217) |
|
(36) |
|
34 |
|
2013 / 2014 |
Purchase commitments |
|
|
16,500 |
|
30,193 |
|
- |
|
- |
|
|
Sale commitments |
|
|
(19,880) |
|
(36,410) |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options contracts |
|
|
(2,050) |
|
(2,130) |
|
(3) |
|
(4) |
|
2013 |
Call |
|
|
(1,080) |
|
(730) |
|
(2) |
|
(3) |
|
|
Long position |
|
|
3,204 |
|
6,728 |
|
- |
|
- |
|
|
Short position |
|
|
(4,284) |
|
(7,458) |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Put |
|
|
(970) |
# |
(1,400) |
|
(1) |
|
(1) |
|
|
Long position |
|
|
2,029 |
|
3,990 |
|
- |
|
- |
|
|
Short position |
|
|
(2,999) |
|
(5,390) |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward contracts |
|
|
- |
|
275 |
|
- |
|
- |
|
2012 |
Long position |
|
|
- |
|
275 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recognized in other current assets and liabilities |
|
|
|
(39) |
|
30 |
|
| |||
* Negative notional values (in bbl) represent short positions.
** Negative fair values were recognized as liabilities and positive fair values as assets.
|
|
|
|
Consolidated | ||
Finance income |
|
|
|
2012 |
|
2011 |
Loss recognized in profit or loss for the period |
|
|
|
(192) |
|
(357) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
Garantees given as collateral |
|
|
|
2012 |
|
2011 |
Generally consist of deposits |
|
|
|
211 |
|
168 |
80
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
b) Sensitivity analysis of crude oil and oil products derivatives
The probable scenario is the fair value at December 31, 2012. The stressed scenarios consider price changes of 25% and 50% on the risk variable, respectively, comparatively to December 31, 2012.
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Probable at |
|
Possible |
|
Remote |
Crude Oil and Oil Products |
|
Risk |
|
|
|
2012 |
|
( of 25%) |
|
( of 50%) |
Brent |
|
Derivative (Brent prices increase) |
|
(42) |
|
(318) |
|
(595) | ||
|
|
Inventories (Brent prices decrease) |
|
34 |
|
309 |
|
584 | ||
|
|
|
|
|
|
(8) |
|
(9) |
|
(11) |
|
|
|
|
|
|
|
|
|
|
|
Diesel |
|
Derivative (Diesel prices decrease) |
|
(4) |
|
(102) |
|
(199) | ||
|
|
Inventories (Diesel prices increase) |
|
1 |
|
100 |
|
198 | ||
|
|
|
|
|
|
(3) |
|
(2) |
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
Freight |
|
Derivative (Freight costs decrease) |
|
- |
|
(1) |
|
(2) | ||
|
|
Inventories (Freight costs increase) |
|
1 |
|
1 |
|
2 | ||
|
|
|
|
|
|
1 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Gasoline |
|
Derivative (Gasoline prices increase) |
|
(4) |
|
(6) |
|
(8) | ||
|
|
Inventories (Gasoline prices decrease) |
|
3 |
|
5 |
|
8 | ||
|
|
|
|
|
|
(1) |
|
(1) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Naphtha |
|
Derivative (Naphtha prices decrease) |
|
(1) |
|
(10) |
|
(20) | ||
|
|
Inventories (Naphtha prices increase) |
|
2 |
|
11 |
|
21 | ||
|
|
|
|
|
|
1 |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
Fuel Oil |
|
Derivative (Fuel Oil prices increase) |
|
1 |
|
(136) |
|
(273) | ||
|
|
Inventories (Fuel Oil prices decrease) |
|
(7) |
|
128 |
|
263 | ||
|
|
|
|
|
|
(6) |
|
(8) |
|
(10) |
|
|
|
|
|
|
|
|
|
|
|
WTI |
|
Derivative (WTI prices decrease) |
|
12 |
|
58 |
|
105 | ||
|
|
Inventories (WTI prices increase) |
|
(12) |
|
(60) |
|
(108) | ||
|
|
|
|
|
|
- |
|
(2) |
|
(3) |
c) Embedded derivatives - Sale of ethanol
The Company entered into an ethanol sales agreement on a price formula set when the contract was signed. The selling price of each ethanol cargo is based on the prices of two distinct references: ethanol and naphtha.
Since the market price of naphtha is not directly proportional to the cost or the market value of ethanol, a portion of the sales agreement, related to the derivative instrument, was measured at fair value (Level 3) through profit or loss (as finance income), separately from the rest of the agreement. The Company has measured the fair value of this agreement based on the difference between the spreads for naphtha and ethanol.
The notional value, fair value and the sensitivity analysis of the swap are presented below:
|
|
Notional value (in thousand of m3) |
Fair value |
|
|
|
Sensitivity analysis at 12.31.2012 |
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Possible |
|
Remote |
Forward contracts |
|
|
|
2012 |
|
2011 |
|
Risk |
|
Probable (*) |
|
( of 25%) |
|
( of 50%) | ||
Long position (Maturity in 2015) |
|
663 |
|
74 |
|
49 |
|
Decrease in spread Naphtha vs. Ethanol |
|
(7) |
|
(66) |
|
(135) | ||
(*) The probable scenario was computed based on the difference between the future contracts of ethanol and naphtha expiring on March, 31, 2013.
81
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
|
|
|
|
|
|
|
Finance income |
|
|
|
2012 |
|
2011 |
Gain (loss) recognized in profit or loss for the year |
|
22 |
|
(55) |
The price of ethanol on the Brazilian market (ESALQ) is used in the agreement. The stress scenarios were computed based on the future prices of ethanol and naphtha on the Chicago Board of Trade (CBOT) on the last working day of the reporting period.
30.2.2 Foreign Exchange risk management
The Company is exposed to foreign exchange risk from recognized assets and liabilities, arising from the volatility of currency markets.
Petrobras seeks to identify and manage foreign exchange risk in an integrated manner, by recognizing and creating “natural hedges”, benefiting from the correlation between income and expenses. To mitigate short-term exchange risk exposure arising from transactions involving income and expenses in different currencies, the Company can use a natural hedge by choosing in which currency to hold cash, such as Brazilian Real, US dollar or another currency.
Foreign exchange risk is managed based on the net exposure and reviewed periodically to support the Executive Board. The Company can use derivative instruments to hedge certain liabilities, minimizing foreign exchange exposure.
a) Main transactions and future commitments hedged by foreign exchange derivatives
Swap Contracts
Yen vs. Dollar
The Company entered into a cross currency swap to fix in U.S. dollars the payments related to bonds denominated in Japanese yen. The Company does not intend to settle these contracts before the maturity. The relationship between the derivative and the loan qualify as cash flow hedge and hedge accounting is applied.
The effective portion of changes in fair value, assessed on a quarterly basis, are recognized in accumulated other comprehensive income, in the shareholders’ equity and reclassified to profit or loss in the periods when the hedged item affects profit or loss.
82
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
b) Notional value, fair value and guarantees
|
|
Consolidated | ||||||
|
|
Notional value (in millions) |
|
Fair value | ||||
|
|
|
|
|
|
|
|
|
Statement of Financial Position |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
Cross Currency Swap (Maturity in 2016) |
|
|
|
|
|
156 |
|
243 |
Long position (JPY) - 2.15% p.a. |
|
JPY 35,000 |
|
JPY 35,000 |
|
887 |
|
926 |
Short position (US$) - 5.69% p.a. |
|
USD 298 |
|
USD 298 |
|
(731) |
|
(683) |
|
|
|
|
|
|
|
|
|
Swap (Maturity in 2012) |
|
|
|
|
|
- |
|
32 |
Long position - US$ |
|
|
|
USD 127 |
|
- |
|
241 |
Short position - R$ CDI |
|
|
|
BRL 199 |
|
- |
|
(209) |
|
|
|
|
|
|
|
|
|
US$ forward (short position) |
|
USD 1,077 |
|
USD 87 |
|
1 |
|
(3) |
|
|
|
|
|
|
|
|
|
Total recognized in other assets and liabilities |
|
|
|
|
|
157 |
|
272 |
Finance income and shareholders' equity |
|
2012 |
|
2011 |
Gain recognized in profit or loss for the period |
|
82 |
|
25 |
Gain recognized in shareholders' equity |
|
14 |
|
8 |
Margin is not required for the operations the Company has entered into, related to foreign currency derivatives.
c) Sensitivity analysis for foreign exchange risk on financial instruments
The Company has assets and liabilities subject to foreign exchange risk. The main exposure involves the Brazilian Real, relative to the U.S. dollar. Foreign exchange risk arises on financial instruments that are denominated in a currency other than the Brazilian Real. Assets and liabilities of foreign subsidiaries, denominated in a currency other than the Brazilian Real are not included in the sensitivity analysis set out below when transacted in a currency equivalent to their respective functional currencies.
The probable scenario, computed based on external data, as well as the stressed scenarios (a 25% and a 50% change in the foreign exchange rates) are set out below:
|
|
|
|
|
|
Consolidated | ||||
|
|
Exposure at |
|
|
|
Scenarios: | ||||
Financial Instruments |
|
2012 |
|
Risk |
|
Probable 12.31.2012 |
Possible ( of 25%) |
Remote ( of 50%) | ||
|
|
|
|
|
|
|
|
|
|
|
Financial Instruments (Assets) |
|
8,407 |
|
Dollar |
|
75 |
|
2,102 |
|
4,204 |
Financial Instruments (Liabilities) |
|
(90,784) |
|
|
|
(814) |
|
(22,696) |
|
(45,392) |
Forward Derivative (Short Position) |
|
(2,201) |
|
|
|
(29) |
|
(550) |
|
(1,100) |
|
|
(84,578) |
|
|
|
(768) |
|
(21,144) |
|
(42,288) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Instruments (Assets) |
|
- |
|
|
|
- |
|
- |
|
- |
Financial Instruments (Liabilities) |
|
(2,298) |
|
Yen |
|
(99) |
|
(575) |
|
(1,149) |
Cross-currency Swap |
|
830 |
|
|
|
(3) |
|
229 |
|
453 |
|
|
(1,468) |
|
|
|
(102) |
|
(346) |
|
(696) |
|
|
|
|
|
|
|
|
|
|
|
Financial Instruments (Assets) |
|
6,451 |
|
Euro |
|
(192) |
|
1,613 |
|
3,225 |
Financial Instruments (Liabilities) |
|
(16,426) |
|
|
|
489 |
|
(4,107) |
|
(8,213) |
|
|
(9,975) |
|
|
|
297 |
|
(2,494) |
|
(4,988) |
|
|
|
|
|
|
|
|
|
|
|
Financial Instruments (Assets) |
|
1,755 |
|
Pound Sterling |
|
(28) |
|
439 |
|
877 |
Financial Instruments (Liabilities) |
|
(5,221) |
|
|
|
82 |
|
(1,305) |
|
(2,610) |
|
|
(3,466) |
|
|
|
54 |
|
(866) |
|
(1,733) |
|
|
|
|
|
|
|
|
|
|
|
Financial Instruments (Assets) |
|
781 |
|
Peso |
|
(29) |
|
195 |
|
390 |
Financial Instruments (Liabilities) |
|
(2,474) |
|
|
|
92 |
|
(619) |
|
(1,237) |
|
|
(1,693) |
|
|
|
63 |
|
(424) |
|
(847) |
|
|
(101,180) |
|
|
|
(456) |
|
(25,274) |
|
(50,552) |
(*)The probable scenario was computed based on the following changes for March, 31, 2013: Real x Dollar – a 0.9% appreciation of the Dollar relative to the Real / Dollar x Yen – a 4.53% appreciation of the Yen / Dollar x Euro: a 2.98% depreciation of the Euro / Dollar x Pound Sterling: a 1.57% depreciation of the Pound Sterling / Dollar x Peso: a 3.87% depreciation of the Peso. The data were obtained from the Focus Report of the Central Bank of Brazil and from Bloomberg.
83
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Foreign exchange exposure is not considered significant, as the impact of foreign exchange depreciation / appreciation does not jeopardize the liquidity of the Company in the short term due to the balance between liabilities, assets, revenues and future commitments in foreign currency, since most of its debt mature in the long term.
30.2.3 Interest rate risk management
The Company is mainly exposed to interest rate risk related to changes in the LIBOR rate, arising from debt issued in foreign currency and to changes in the Brazilian long-term interest rate (TJLP), arising from debt issued in Brazilian Real. An increase in interest rates causes a negative impact in the Company's finance expense and its financial position.
The Company considers that exposure to interest rate risk does not cause a significant impact and therefore, preferably does not use derivative financial instruments to manage interest rate risk, except for specific situations encountered by certain companies of the Petrobras group.
a) Main transactions and future commitments hedged by interest rate derivatives
Swap contracts
Floating-to-fixed swap ( Libor USD) vs. Fixed rate (USD)
The Company entered into an interest rate swap, in order to exchange a floating interest rate for a fixed rate, aiming at eliminating the mismatch between the cash flows of assets and liabilities from investment projects. The Company does not intend to settle the operation before the maturity date, and therefore, adopted hedge accounting for the relationship between the finance debt and the derivative.
Other positions held are set out in the table below.
b) Notional value, fair value, guarantees and sensitivity analysis for interest rate derivatives
|
|
Consolidated | ||||||
|
|
Notional value (in millions) |
|
Fair value | ||||
Statement of Financial Position |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
Swaps (maturity in 2020) |
|
|
|
|
|
|
|
|
Short position |
|
USD 460 |
|
USD 478 |
|
(85) |
|
(67) |
|
|
|
|
|
|
|
|
|
Swaps (maturity in 2015) |
|
|
|
|
|
(2) |
|
(3) |
Long position – Euribor |
|
EUR 15 |
|
EUR 20 |
|
1 |
|
1 |
Short position – 4.19% Fixed rate |
|
EUR 15 |
|
EUR 20 |
|
(3) |
|
(4) |
|
|
|
|
|
|
- |
|
- |
Total recognized in other assets and liabilities |
|
|
|
(87) |
|
(70) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income and shareholders' equity |
|
|
|
|
|
2012 |
|
2011 |
Loss recognized in profit or loss for the period |
|
|
|
(1) |
|
- | ||
Loss recogonized in shareholders' equity |
|
|
|
|
|
(18) |
|
(34) |
84
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
|
|
|
|
|
|
Consolidated | ||||
|
|
|
|
|
|
Scenarios: | ||||
|
|
|
|
|
|
|
|
Possible |
|
Remote |
Interest rate derivatives |
|
Risk |
|
|
|
Probable (*) |
|
( of 25%) |
|
( of 50%) |
Hedge (Derivative - Swap) |
|
Libor decrease |
|
|
|
(89) |
|
(7) |
|
(24) |
Debt |
|
Libor increase |
|
|
|
89 |
|
7 |
|
24 |
Net efect |
|
|
|
|
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Hedge (Derivative - Swap) |
|
Euribor decrease |
|
|
|
- |
|
1.0 |
|
- |
Debt |
|
Euribor increase |
|
|
|
- |
|
(1.0) |
|
- |
Net efect |
|
|
|
|
|
- |
|
- |
|
- |
*The probable scenario was computed based on LIBOR futures.
Margin is not required for the operations the Company has entered into, related to interest rate derivatives.
85
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
30.3 Credit risk
Petrobras is exposed to the credit risk arising from commercial transactions and from cash management, related to financial institutions and to credit exposure to customers. Credit risk is the risk that a customer or financial institution will fail to pay amounts due, relating to outstanding receivables or to financial investments, guarantees or deposits with financial institutions.
Credit risk management in Petrobras is a portion of its financial risk management, which is performed by the Company’s officers, under a policy of corporate risk management. The Credit Commissions are, each, composed of executive Managers for Risk Management, Finance and Commercial Department.
The purpose of the Credit Commissions is to analyze credit management issues, relating to granting and managing credit; to encourage integration between the units that compose the Credit Commissions; and to identify recommendations to be applied in the units involved or to be submitted to the appreciation of higher jurisdictions.
The credit risk management policy is part of the Company’s global risk management policy and aims at reconciling the need for minimizing exposure to credit risk and maximizing the result of commercial and financial transactions, through an efficient credit analysis process and efficient credit granting and management processes.
The Company manages credit risk by applying quantitative and qualitative parameters that are appropriate for each of the market segments in which it operates.
The Company’s commercial credit portfolio is much diversified and the credits granted are divided between clients from the domestic market and from foreign markets.
Credit granted to financial institutions is spread among the major international banks rated by the international rating agencies as Investment Grade and highly-rated Brazilian banks.
The maximum exposure to credit risk is represented mainly by the balance of accounts receivable and derivative financial instruments outstanding.
30.4 Liquidity risk
The Company's liquidity risk is represented by the possibility of a shortage of funds, cash or another financial asset in order to settle its obligations on the established dates.
The liquidity risk management policy adopted by the Company provides that the maturity of its debt continues to be lengthen, exploring the funding opportunities available in the domestic market and being significantly active in the international capital markets by broadening the investor’s base in fixed income.
Petrobras finances its working capital through a centralized cash management for the group and by assuming short-term debt, which is usually related to commercial transactions, such as export credit notes and advances on foreign exchange contracts. Investments in non-current assets are financed through long-term debt, such as bonds issued in the international market, funding from credit bureaus, financing and pre payment of exports, development banks in Brazil and abroad, and lines of credit with national and international commercial banks.
86
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
A maturity analysis of the long-term debt, including face value and interest payments is set out in the table below:
Maturity |
|
|
Consolidated |
2013 |
|
|
22,814 |
2014 |
|
|
18,168 |
2015 |
|
|
24,570 |
2016 |
|
|
37,284 |
2017 |
|
|
26,433 |
2018 |
|
|
38,465 |
2019 and thereafter |
|
|
110,322 |
Balance at December 31, 2012 |
|
|
278,056 |
Balance at December 31, 2011 |
|
|
229,381 |
30.5 Financial investments (derivative financial instruments)
Operations with derivatives are, both in the domestic and foreign markets, earmarked exclusively for the exchange of indices of the assets that comprise the portfolios, and their purpose is to provide flexibility to the managers in their quest for efficiency in the management of short-term financial assets.
The market values of the derivatives held in the exclusive investment funds at December 31, 2012 are set out below:
Contract |
|
Number of Contracts |
Notional value |
Fair value |
|
Maturity | ||
|
|
|
|
|
|
|
|
|
Future DI (Interbank Deposit) |
|
|
|
|
|
2 |
|
2013 to 2015 |
Long position |
|
117,174 |
|
10,877 |
|
1 |
|
|
Short position |
|
(164,166) |
|
(15,066) |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
Future dollar |
|
|
|
|
|
- |
|
2013 |
Long position |
|
110 |
|
11 |
|
(1) |
|
|
Short position |
|
(331) |
|
(34) |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
Swap |
|
|
|
|
|
2 |
|
2014 |
Long position |
|
- |
|
405 |
|
9 |
|
|
Short position |
|
- |
|
(405) |
|
(7) |
|
|
87
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
31 Fair value of financial assets and liabilities
The hierarchy of the fair values of the financial assets and liabilities, recorded on a recurring basis, is set out below:
|
|
Fair value measured based on |
|
| ||||
|
Prices quoted on active market (Level I) |
Valuation technique supported by observable prices (Level II) |
Valuation technique without use of observable prices (Level III) |
Total fair value recorded | ||||
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Marketable securities |
|
21,376 |
|
- |
|
- |
|
21,376 |
Commodity derivatives |
|
- |
|
- |
|
74 |
|
74 |
Foreign currency derivatives |
|
1 |
|
156 |
|
- |
|
157 |
Financial investment derivatives |
|
4 |
|
- |
|
- |
|
4 |
Balance at December 31, 2012 |
|
21,381 |
|
156 |
|
74 |
|
21,611 |
Balance at December 31, 2011 |
|
22,362 |
|
243 |
|
49 |
|
22,654 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Commodity derivatives |
|
(39) |
|
- |
|
- |
|
(39) |
Interest derivatives |
|
(87) |
|
- |
|
- |
|
(87) |
Balance at December 31, 2012 |
|
(126) |
|
- |
|
- |
|
(126) |
Balance at December 31, 2011 |
|
(106) |
|
(3) |
|
- |
|
(109) |
88
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
32 Insurance
The Company’s insurance policies involve acquiring insurance to cover assets that might lead to material negative impacts in the shareholders’ equity (in the case of an eventual damage), as well as risks subject to legal or contractual mandatory insurance. The remaining risks are subject to self-insurance and Petrobras intentionally assumes the entire risk by abstaining from contracting insurance. The Company assumes a significant portion of its risk, by including franchises that may reach an amount equivalent to US$ 80 in its insurance policies.
The risk assumptions adopted are not part of the audit scope of the financial statements audit and therefore were not examined by independent auditors.
|
|
|
|
Amount insured | ||
Assets |
|
Types of coverage |
|
Consolidated |
|
Parent company |
|
|
|
|
|
|
|
Facilities, equipments inventory and products inventory |
|
Fire, operational risks and engineering risks |
299,663 |
|
178,806 | |
|
|
|
|
|
|
|
Tankers and auxiliary vessels |
|
Hulls |
|
6,094 |
|
- |
|
|
|
|
|
|
|
Fixed platforms, floating production systems and offshore drilling units |
Oil risks |
|
60,316 |
|
17,778 | |
|
|
|
|
|
|
|
Total |
|
|
|
366,073 |
|
196,584 |
Petrobras does not have loss of earnings insurance or insurance related to well control and pipeline networks in Brazil.
33 Subsequent Events
Funding – PGT
On January 28, 2013 Petrobras Global Trading B.V. (PGT), an indirect subsidiary of Petrobras, signed a financing agreement in the amount of US$ 500 million. The agreement carries an interest rate of 6-month Libor rate + 1.95% p.a. and pays semi-annual coupons.
89
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
Information on reserves (unaudited)
The regulatory framework for oil and gas exploration, development and production activities in Brazil was based on concession agreements until June 30, 2010, when the enactment of Law 12,276 introduced the Onerous Assignment Agreement (“Cessão Onerosa”), in specific pre-salt areas and Law 12,351, enacted in December 22, 2010, introduced the new regulatory framework that established a production-sharing model for pre-salt areas and strategic areas to be contracted by the Federal Government. Most of the contracts outside Brazil are based on concession agreements. Therefore, exploration and development expenses are capitalized and reported, instead of presenting the monetary value of the volume of reserves.
Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible - from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations.
Proved developed reserves are those proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well and through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
Proved undeveloped reserves are those proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.
Reserve estimates include inherent uncertainties and therefore are subject to changes due to increased availability of geoscience (geological, geophysical, and geochemical), engineering, and economic data.
Proved oil and gas reserves estimated by the Company in accordance with the SEC criteria are set out below:
|
|
Oil (billions of bbl) (*) |
|
|
|
Gas (billions of m³) (*) |
|
|
|
Oil + Gas (billions of boe) (*) |
|
| ||||||
|
|
Brazil |
|
International |
|
Total |
|
Brazil |
|
International |
|
Total |
|
Brazil |
|
International |
|
Total |
Balance at December 31, 2011 |
|
10.411 |
|
0.364 |
|
10.775 |
|
293.242 |
|
36.839 |
|
330.081 |
|
12.256 |
|
0.580 |
|
12.836 |
Change in reserves |
|
0.815 |
|
0.073 |
|
0.888 |
|
0.649 |
|
0.308 |
|
0.956 |
|
0.822 |
|
0.076 |
|
0.898 |
Production |
|
(0.687) |
|
(0.047) |
|
(0.734) |
|
(19.790) |
|
(3.255) |
|
(23.045) |
|
(0.815) |
|
(0.067) |
|
(0.882) |
Balance at December 31, 2012 |
|
10.539 |
|
0.390 |
|
10.929 |
|
274.101 |
|
33.891 |
|
307.992 |
|
12.263 |
|
0.589 |
|
12.852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve of non-consolidated companies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2011 |
|
- |
|
0.030 |
|
0.030 |
|
- |
|
1.231 |
|
1.231 |
|
- |
|
0.037 |
|
0.037 |
Balance at December 31, 2012 |
|
- |
|
0.024 |
|
0.024 |
|
- |
|
1.352 |
|
1.352 |
|
- |
|
0.032 |
|
0.032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved developed reserves |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2011 |
|
6.974 |
|
0.181 |
|
7.155 |
|
181.134 |
|
14.506 |
|
195.640 |
|
8.113 |
|
0.267 |
|
8.380 |
Balance at December 31, 2012 |
|
6.398 |
|
0.196 |
|
6.594 |
|
180.486 |
|
13.453 |
|
193.939 |
|
7.533 |
|
0.275 |
|
7.808 |
International proved reserves does not include oil and gas reserves in Bolivia as the New Political Constitution of the State (NCPE) prohibits recognition and disclosure of oil and gas reserves in Bolivia by private companies.
90
Petróleo Brasileiro S.A. – Petrobras
Notes to the financial statements (Consolidated and Parent Company)
(In millions of reais, except when indicate otherwise)
BOARD OF DIRECTORS
GUIDO MANTEGA President
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FRANCISCO ROBERTO DE ALBUQUERQUE Member |
LUCIANO GALVÃO COUTINHO Member |
MIRIAM APARECIDA BELCHIOR Member |
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JORGE GERDAU JOHANNPETER Member |
MARIA DAS GRAÇAS SILVA FOSTER Member |
SÉRGIO FRANKLIN QUINTELLA Member |
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JOSUÉ CHRISTIANO GOMES DA SILVA Member |
MÁRCIO PEREIRA ZIMMERMANN Member |
SILVIO SINEDINO PINHEIRO Member |
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EXECUTIVE COMMITTEE (OFFICERS)
MARIA DAS GRAÇAS SILVA FOSTER President | ||
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ALMIR GUILHERME BARBASSA Chief Financial and Investor Relations Officer |
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JOSE CARLOS COSENZA Director of Refining, Transportation & Marketing |
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JOSE ALCIDES SANTORO MARTINS Director of Gas and Energy |
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JOSE EDUARDO DE BARROS DUTRA Director of Services and Corporate areas |
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JOSE ANTONIO DE FIGUEIREDO Director of Engineering, Technology and Materials |
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JOSE MIRANDA FORMIGLI FILHO Director of Exploration and Production |
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MARCOS ANTONIO SILVA MENEZES Accountant - CRC-RJ 35.286/O-1 Chief Accounting Officer (CAO) |
PETRÓLEO BRASILEIRO S.A--PETROBRAS | ||
By: |
/S/ Almir Guilherme Barbassa
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Almir Guilherme Barbassa
Chief Financial Officer and Investor Relations Officer |
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that are not based on historical facts and are not assurances of future results. These forward-looking statements are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results o f operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.