Petróleo Brasileiro S.A. - Petrobras Q2 FY2025 earnings call

• Production ramp-up: Oil production increased from 2,090,000 bpd in Q4 2024 to 2,300,000 bpd in Q2 2025 and 2,470,000 bpd in July 2025. Achieved a 380,000 bpd increase in production in 7 months.
• CapEx execution: Invested $4.4 billion in Q2, with total CapEx for the year at $18.5 billion, focused on upstream to drive production.
• Gas and energy transition: Increased gas production by 15% via Route 3 pipeline and Boaventura gas processing unit.
• Cost optimization: Re-evaluating project phases to ensure profitability, with efforts to optimize contracts and reduce costs through different bidding and contracting strategies.

In the second quarter of 2025, Petrobras saw a significant increase in oil production. Average oil production in Q2 was 2.3 million barrels per day, up from 2.09 million barrels per day in Q4 2024. Gas production increased by 15% due to the Route 3 pipeline and gas processing unit in the Boaventura complex. Total production reached a new record of 4.2 million barrels of oil equivalent per day.

• Production: On track to be at the top of the year's guidance. Average oil and gas production expected to be at the upper end of the target range.
• CapEx: $18.5 billion CapEx plan for the year is being executed as planned.
• Dividends: 45% of free cash flow from Q2 will be distributed as dividends, with BRL 8.7 billion equivalent to BRL 0.67 per share to be paid in two installments in November and December.

• Geopolitical challenges: Impact on crude oil and gas prices, which are not under Petrobras' control. However, the company is mitigating price variations through production increase and cost reduction.

Q: About CapEx alignment with natural gas distribution and future advancements A: Petrobras is integrated and looking for synergies. Open to profitable projects if attractive and in line with company demands Q: LPG release and partnerships A: Expanding gas market, looking for partnerships to place products, with doors open for best value generation Q: Investment plan for next year and project phases A: Re-evaluating projects, optimizing for profitability, adjusting CapEx to current market scenario with Brent prices lower, and rethinking project phases to ensure financial feasibility