Petroleo Brasileiro SA · BMFBOVESPA:PETR3
Petroleo Brasileiro SA — PETROBRAS — Debt Investor Presentation (January 2005)
26 slides from Petroleo Brasileiro SA's debt investor presentation, January 2005
Slide 1: Petróleo Brasileiro S.A. – PETROBRAS
Petróleo Brasileiro S.A. – PETROBRAS José Sérgio Gabrielli de Azevedo CFO and Investor Relations Director January - 2005
Slide 2: Forward Looking Statements Disclaimer
Forward Looking Statements Disclaimer This presentation may contain information that constitutes projections, expectations, beliefs or similar forward-looking statements. These forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that w
Slide 3: Petrobras: Evolving Into an Integrated, Publicly Traded, Major Int'l Oil Company
Petrobras: Evolving Into an Integrated, Publicly Traded, Major Int’l Oil Company Incorporated in 1953 as government monopoly for all hydrocarbon activities in Brazil 60% of total equity capital (common and preferred) is now publicly traded Government maintains controlling interest with 58% of voting
Slide 4: Company Structure
Company Structure Exploration and Downstream Gas and Energy International Production Summary Financials (US$Bn) 2004 Income from Operations (1) For Year Ended 2003 (2) 9M04 (2) Distribution Gas and 1.9% Energy Net Revenues 30.8 26.7 International 2.6% EBITDAX 11.1 9.2 2.6% Capex 6.6 4.7 Supply 11.8%
Slide 5: World Class Integrated Public Energy Company
World Class Integrated Public Energy Company Proved Reserves (SEC) as of Dec 31, 2003 (billion boe) 2003 Oil & Gas Production (million boe) ExxonMobil 21.1 ExxonMobil 1,587 BP 14.8 BP 1,497 RD Shell 14.4 RD Shell 1,434 ChevronTexaco 12.0 ChevronTexaco 958 Petrobras 11.6 TotalFinaElf 926 TotalFinaElf
Slide 6: Long-Term Record of Increasing Reserves
Long-Term Record of Increasing Reserves Proven Reserves by Category Worldwide Proved Reserves of Petrobras (Reviewed and Certified by DeGolyer and MacNaughton since 2001) Assoc. Gas Non-Assoc. gas 7% 9% % 14 04 = 5.2 Oil and Condensate R 97-20 CA G 11,8 12 11,3 11,6 84% 9,6 9,7 10 9,2 9,3 11% Year-e
Slide 7: Total Production of Oil and Gas – Self-sufficiency in Brazil Expected by 2006
Total Production of Oil and Gas – Self-sufficiency in Brazil is Expected by 2006 4.000 3,421 3.500 % 134 9 .2 3.000 479 2.500 508 1,810 2,037 2,020 1,564 1,636 23 85 99 2.000 169 20 25 35 161 52 43 252 250 260 1.500 232 221 2.300 1.000 1,492 1.540 1.336 1.500 500 1.271 - 2000 2001 2002 2003 2004 201
Slide 8: Brazilian Capacity – New Production Units Coming on Stream
Brazilian Capacity – New Production Units Coming on Stream Production P-48 Target 2010 150.000 bpd Feb-2005 2,300 2.200 P-43 Oil Production in Brazil (Thousand) 150.000 bpd Oct-04 P-54 180.000 bpd Marlim Sul 3rd qtr-07 FPSO 100.000 bpd P-52 Frade 1.800 Jun-04 180.000 bpd CVX operator Golfinho 1st qt
Slide 9: Competitive Cost Structure
Competitive Cost Structure 2001– 2003 Average Finding & Development Costs 2003 Lifting Costs 10 10 8.0 8 8 6.5 $/boe 6 5.3 5.3 6 $/boe 4.8 4.9 5.1 4.9 4.4 4.5 4 3.8 3.1 4 3.5 2.6 2 2 0 0 Royal Exxon Chevron BP Total Fina Petrobras Average Exxon Mobil Chevron Royal BP Petrobras Total Fina Average Dut
Slide 10: Petrobras Is Positioned to Remain Dominant in Brazil
Petrobras Is Positioned to Remain Dominant in Brazil ISOLATED MARKET WITH PRODUCTION AND DEMAND IN BALANCE… US Gulf Coast 4,900 miles Brazilian market consumes approximately 1.8 3% million bpd of oil products 5% Domestic production of 1.8 million boed Rotterdam ¾ directly adjacent to refineries/prin
Slide 11: An International Pricing Environment
An International Pricing Environment Average Realization Prices (ARP) vs. Brent 60 50 40 30 20 10 0 mar/02 jun/02 set/02 dez/02 mar/03 jun/03 set/03 dez/03 mar/04 jun/04 set/04 ARP Brazil (US$/bbl) Average Brent Price (US$/bbl) ARP USA (w / volumes sold in Brazil) ¾Prices fully deregulated in Januar
Slide 12: A Major Commitment to Expanding International Presence
A Major Commitment to Expanding International Presence United Kingdom. US A Houston Head Office US$ 7.5 billion budgeted for Cuba Iran Refining international operations for Mexico Trinidad & Saudi Arabia Tobago Nigeria Distribution 2004-2010 strategic plan Colombia Venezuela Equatorial Ecuador Guine
Slide 13: Petrobras is Becoming a Net Exporter from Brazil
Petrobras is Becoming a Net Exporter from Brazil Import (thousand barrels/day) Export (thousand barrels/day) 692 723 542 551 326 424 439 446 436 390 216 101 301 105 191 206 213 240 397 326 319 450 203 302 159 233 233 196 32 98 2000 2001 2002 2003 Jan-Sept 04 2000 2001 2002 2003 J a n- S e pt Oil Oil
Slide 14: Financial Highlights
Financial Highlights 13
Slide 15: Investment Plan
Investment Plan US$ 53.6 billion for 2004-2010, representing US$ 6.6 billion average annual investment in Brazil and US$ 1.1 billion abroad. Distribution by Distribution by Area Business Segment 21% 86% 2 bi 1. $1 US$ 46.1 bi US 6.1 bi 11% US US$ 32.1 bi $7 .5 bi 1.7 bi 60% 14% 1.4 bi 3% 1.1 bi 3% 2
Slide 16: Capitalization
Capitalization (US$MM) 2001 2002 2003 9M04 Cash & Equivalents 7,360 3,301 9,610 7,080 ST Debt and Current Maturities 3,019 1,986 3,694 3,050 LT Debt + Project Financing (1) 10,991 12,694 18,196 18,033 Total Debt 14,010 14,680 21,890 21,083 Net Debt (2) 6,500 11,229 11,980 14,003 Shareholder’s Equity
Slide 17: Amortization Schedule / Debt Profile
Amortization Schedule / Debt Profile Debt Amortization Schedule Financing Sources 4000 3500 (US$bn) Dec-01 Dec-02 Dec-03 Sep-04 3000 Commercial Bank 1.9 1.3 2.6 1.9 Debt US$ million 2500 2000 Securitization 0.9 0.9 1.8 1.5 International Bonds 2.1 2.3 5.1 5.8 1500 Local Bonds 0.0 0.5 0.9 0.9 1000 Pla
Slide 18: Financial Overview
Financial Overview Net Revenues & EBITDAX Net Debt / EBITDAX 35 30.8 3 30 26.7 24.5 22.6 25 2 (US$bn) 1.5 (x) 20 1.1 1.1 15 11.1 0.8 7.4 7.6 9.2 1 10 5 0 0 2001 2002 2003 9M04 2001 2002 2003 9M04 Net Revenues EBITDAX Debt Levels Net Debt / Net Book Cap 60 55 25 21.9 21.0 50 20 41 41 40 (US$bn) 14.0
Slide 19: Investment Grade Credit Ratios – 2003
Investment Grade Credit Ratios – 2003 3.0 Net Debt / EBITDA EBITDA / Interest 20.0 18.3 2.5 16.0 1.9 2.0 1.7 12.0 9.3 9.1 8.5 1.5 1.3 7.2 (x) 8.0 (x) 1.1 0.9 1.0 4.0 0.5 0.0 Kerr-McGee Devon Amereda Petrobras Marathon Marathon Amereda Devon Petrobras Kerr-McGee Hess Hess Baa3/BBB Baa2/BBB Baa1/BBB+
Slide 20: Substantially Larger Operations than Other BBB Oil Companies – 2003
Substantially Larger Operations than Other BBB Oil Companies– 2003 800 Production 743 Proven Reserves 15,000 700 11,639 600 (MM BOE) (MMBOE) 10,000 500 400 300 228 5,000 200 136 140 2,089 99 1,026 1,035 1,042 100 0 0 Kerr-McGee Amerada Marathon Devon Petrobras Kerr-McGee Amerada Marathon Devon Petro
Slide 21: Petrobras Substantially Larger than All High Yield Issuers Combined – 2003
Petrobras Substantially Larger than All High Yield Issuers Combined– 2003 Companies included in the operating statistics below: Chesapeake, Pioneer, XTO, Pogo, Tesoro, Newfield, Premcor, Forest, Vintage, Plains Exploration 800 Production Proven Reserves 12,000 600 9,000 (MMBOE) (MM BOE) 400 743 6,00
Slide 22: Significant Relative Value
Significant Relative Value Year to Date Excess Returns (bps) (1) Credit Index Sovereign Index Energy Index Non- High Petrobras Corporate Yield 2004 124 196 179 227 132 312 2003 506 446 440 237 2318 3181 Comparison of PIFCo to Select Energy Bond Issues (1) Spread 400 Pick up 351 bps Pick up 300 12/31
Slide 23: Investment Considerations
Investment Considerations Operational Strengths Financial Strengths World class integrated oil and Investment grade credit profile gas company Diversified and stable funding Long term record of increasing sources reserve base Average debt amortization of 18% Superior production growth of 2003 EBITDA
Slide 24: Transaction Summaries: Corporate Bond with Political Risk Insurance
Transaction Summaries Corporate Bond with Political Risk Insurance Issuer: Petrobras International Finance Co. - “PIFCo” (100%-owned subsidiary of Petrobras) Type of Offering: Senior, Unsecured, SEC Registered Notes Outstanding Issues: Size Maturity Coupon Recent Price $500MM 2007 9.125% 109.50 $450
Slide 25: Transaction Summaries: Plain Vanilla Corporate Bonds
Transaction Summaries “Plain Vanilla” Corporate Bonds Issuer: Petrobras International Finance Company – “PIFCo” (100%-owned subsidiary of Petrobras) Type of Offering: Senior, Unsecured, SEC Registered Issues Outstanding: Size Maturity Coupon Recent Price $400MM 2008 9.00% (Step) 116.25 $750MM 2013 9
Slide 26: Transaction Summaries: Future Flow Export Securitization
Transaction Summaries Future Flow Export Securitization-Wrapped and Unwrapped Issuer: PF Export Receivables Master Trust (the “Master Trust”) Type of Offering: Senior Trust Certificates, issued under Rule 144a/Reg S Outstanding Issues: Size Maturity Coupon $550MM 2015 6.436% $950MM (w/monoline wrap)
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