Petróleo Brasileiro S.A. - Petrobras (BVMF:PETR4)

Petrobras Day 2020

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Dec 1, 2020

Good morning. Welcome to Petrobras Day twenty twenty. Today, we'll have the opportunity to discuss with our management our new business plan for 2020 to 2025. We'd like to inform you that all participants will follow the transmission by Internet as listeners. After an introduction and presentations, a Q and A session will begin. You can send us questions by e mail, petroinvestepetrobras dot com. Br. This year, we're also broadcasting the Petrobras Day via LinkedIn, bringing more transparency into our strategic plan. Today, we have with us, Roberta Castelobranco, Petrobras CEO Andrea Almeida, Chief Financial Investor Relations Officer Anneliese Lara, Chief Refining and Natural Gas Officer Andre Quiarini, Chief Trading and Logistics Officer Carlos Alberto Pereira de Oliveira, Chief Exploration and Production Officer Nicolas Simon, Chief Digital Transformation and Innovation Officer Roberto Ardenghi, Chief Institutional Relations and Sustainability Officer and Rudi Marjo Lorenzato, Chief Production Development Officer. The presentation will be available throughout the event on our company's website. We will start by listening Petrobras CEO, Roberto Castelobranco. Roberto, you may begin. Thank you, caller. Good morning. It's a pleasure to be here to talk with you about Petrobras and its strategic plan for the next five years. Individuals as well companies should have a purpose. And ours is to be the best oil and gas company in shareholder value creation with respect to people, the environment and a strong focus on operational safety. But it's nice. It's a nice statement. But what are we doing to reach that? First of all, we are promoting a transformational agenda at Petrobras. This is driven by a strategy that has is composed by five pillars. First, maximization of return on capital employed. This by itself is based on two important concepts. First, to be the natural owner. In other words, we will own assets in which we are the best. We are the best to extract returns. This drives a large divestment program of known core assets. Second concept, important concept is capital discussed. Capital discussed, we are in a very capital intensive industry. So, it must have competition for funds. Projects have to compete among them in order to obtain funding to be implemented. This is very important as a discipline in capital allocation and value generation. We have a strong preference for value over volume. Our goal is to maximize value and not to maximize volume. Another important pillar is reduction of cost of capital. As I said, we are in a highly capital intensive industry, so the cost of capital has to be low, has to be cheap. In order to achieve that, we are deleveraging our balance sheet. Are still we are not happy still with the size of our debt, But we have made many progress over the last couple of years. And since 2015, till the 2019, Petrobras paid $70,000,000,000 of debt and with interest payments of $37,000,000,000 Second point is transparency. Transparency and strong communication with the financial community and liability management in order to have lower cost of debt and to extend the maturity of our debt in order to minimize refinancing risks. Religious search for low cost is also a pillar. We see we are a player in the commodity business. Commodities are exposed to volatile price, and price volatility transmit volatility to our cash flow. So we must have low cost, and we are pursuing this relentlessly. Seeing the long term, we have a scenario of low oil price. In order to survive and thrive in this scenario, oil producers have to be low cost producers. This is our goal. Another important pillar is meritocracy, is the base for the creation of value culture, variable compensation program based on good metrics. We are using EVA that was introduced in the company last year, and it's generating very good results. And last but not least, an important pillar is the drive towards safety, health, respect for people and the environment. The environment, we have as I'm going to show you, we have a strategy for ESG in order to address the various problems related to climate change, to social inequality and so forth. Well, this is in order to execute this strategy, we have two important initiatives, two transformation initiatives, a cultural transformation and digital transformation. Cultural transformation is very important. One may have the best strategy in the world, but if the culture rejects it, you are going nowhere. So cultural transformation is very important as well as digital transformation. And to implement digital transformation, you have to change the mindset of people. But it's not enough to just introduce artificial intelligence, analytics, machine learning and other products of the digital revolution. We have to change the mindset of people. And digital transformation is very, very important for our future as a low cost producer, as a very efficient producer, important as well for the environment, for environmental protection, for lower carbon emission, for safety of our operations and our employees. Moving ahead, again, in order to execute this plan, we have a management model that's based on several points. First, courage, transparency and integrity. I think they are necessary conditions for being a good leader. Broad and efficient communication, external and internal communication. For cultural transformation is key, transparent communication, frequent communication and to say the truth in order to gain credibility. Strategic consistency. Strategy execution requires strong discipline. You have to be consistent all the way. And the creation of agile teams are very efficient, able to interact. We have these agile teams composed by both corporate people and operations people. And they are able to to discuss, to learn from each other and to make decisions faster than in the absence of this. Efficiency in all activities and that data driven decisions, this is key. As part of the management model, we have freedom with responsibility. So accountability is our main marks of the management model. Meritocracy, trust within an organization, trust among the neighbors is fundamental. If there is no trust, you are going to fail. And succession planning and talent density. Petrobras is a nest of talents, having highly skilled people. And our goal is to identify, young talents in order to prepare them, in order to mentor mentoring these people to be the leaders of the future. Moving ahead, as widely known, this year, we have the unprecedented case of a major health crisis and a global recession that was creating a shock, a negative shock on the oil industry across the globe. Our first reaction, we have to react to move fast as in a war once you are attacked, is to prioritize health, the health of our employees and the health the financial health of the company. We organize the teams to work on health safety, fighting the effects of the COVID-nineteen, home office, creating a more flexible model of working with the adoption of home office. Home office is scheduled to last till the March year. And after that, we'll move to partial home ops permanently. This is very important as not only protects this the health of employees, but it's very beneficial from the economic point of view. We are liberating about nine buildings, nine administration buildings, four administrative buildings till the first quarter of next year. Some are already gone and creating smart offs. Alongside home ops, we adopted massive testing. Till now, we have applied more than 350,000 tests in our employees and employees from service companies hired to work for Petrobras. And cooperation with society, we understand that the human factor is important and we should have compassion for the low income people to try to minimize the suffering. Financial resiliency. As I said, we moved very fast in terms of guaranteeing that Petrobras will survive the crisis, and we did. This is we faced all this uncertain environment, gave a fast response. But it's not only a matter of get through it. As Albert Einstein, the world famous physicist and novel Lawriek said, in the midst of every crisis lies a great opportunity. And we took the opportunity to accelerate execution of our strategy and at the same time, to accelerate digital transformation. This was very important for the future, and we are very cautious that 's not only a 100 meters sprint. We are running a marathon. And the 100 meters sprint fighting against the crisis reenergized the company and created momentum to accelerate strategy execution and digital transformation. Well, Petrobras was the only company among major oil companies, major listed oil companies to reduce debt the first nine months of the year. We reduced $7,500,000,000 in debt. Among the pandemic. We were able to do that. And Petrobras was also the company with the strongest cash flow among large oil companies, large listed oil companies. And production growth in the first nine months in the year went very well. The pre salt increased output by 32%. We are launching as part of the program of lower carbon emission. We are launching cleaner and higher value added foods. We made significant advance in our logistics and sales and marketing of oil and fuels, not only in Brazil, but in a global scale. So we reached export records in oil and fuel oil with low sulfur content. That's more friendly to the environment than the old fuel oil. And given our financial performance, we are the market improved the risk perception about Petrobras. We issued ten year bonds with the lowest yield in our history, a really landmark, major achievement. Well, to finalize my presentation, I'll give you the some top goals for next year. First, since last since this year, we have an index of greenhouse gas intensity, emission intensity as an element for variable compensation of our executives. We have goals for the oil business and for refining business as well as we have the spilled volume. That's very important to control them to avoid environmental damage. Gross debt, we have a target for 67,000,000,000. Delta EVA, the increase in EVA is projected to increase by BRL1.6 billion. And the total recordable injuries rate per million man hour, we put a ceiling on 0.7. Last year, we are benchmarked in the oil industry in terms of injuries, in terms of safety of our operations. And this year, we continue to perform very well, and we will continue to pursue ambitious targets. And our main ambition in this area of spilled volume is to reach, at any point, zero fatalities in our operations and zero leakage of oil and fuels. Having said that, now we are going to present an institutional video. Fiction. If we tell, maybe no one will believe us. It is already hard enough to imagine how is it possible to extract oil from the deepest reaches in the middle of a vast ocean. It seems impossible, but it is what Petrobras does. It is our daily life. All this because we have a very powerful source of energy, knowledge. Driven by this force, we discovered Presol. We are continuously breaking record after record, generating maximum value and focusing in the business we do best. No wonder we are world leaders in ultra deep waters. Guarantee our future. The challenges are many, but we are not intimidated. We are driven by transformation, and we are launching new strategic programs, which will guide our operation until 02/1930. Are proud our world. Come with us to know more and to make history. Of We We are are energy for transformation. Innovation is something that's embedded in our DNA, And we are making all efforts to extract the potential that we have. Now I'll pass to my colleague, Roberto Adengi, to say some words about ESG. Thank you, Roberto. Good morning, everybody. You heard Roberto, and I think it's very clear that when we see Petrobras today, ESG and sustainability are becoming even more relevant and prominent for Petrobras and an important part of our business plan. We are maintaining our focus on maximization of returns to investors with a low cost and efficient operation, but with a very great focus on ESG and low emission. When we talk about governance and management quality, I think it's worth to mention that two, out of four metrics we have for the whole company are ESG related, and, they will impact all employees' compensations in 2021. This has already started some years ago, and we are emphasizing this even more and put these metrics as part of the compensation package, intensity of greenhouse and gas emissions and liquid volume of oil and oil products. Also, the establishment of a climate change executive management inside Petrobras and also connecting these executive management to a board level member also show that climate change and emissions are receiving a high priority in our agenda. Going to the next slide, when we see our path in the future, we see three basic pillars. The first one is transparency. And what we mean, we want to really make sure that we quantify the carbon in all our critical process. The second one has already been mentioned by Roberto, the the resilience of the positioning foils in view of the low carbon transition. And the third one is more related to technology and creation and skills to create a value in low carbon. All all those pillars, they put us in what we call a double resilience. In one side, of course, being able to have a very good breakeven, very low breakeven in the economic area, but also make sure that this breakeven is also to connect it to our environmental low carbon agenda. Next one, please. The next slide shows how we are going to do that. We see a lot of possibilities in terms of innovation in our operations biorefining. My colleague, Anelise Zilada and Nicolas Simonio, we're able to go further on those two points and also developing a co competitive, develop developing skills for the future. We are planning to invest, over the next five years, $1,000,000,000 in these areas. The next slide show you show you, our commitments in terms of sustainability. We have not just commitments related directly to, environmental and low emission targets, but also we have commitments related to, investments in social environmental projects, in biodiversity. We have been developing in Brazil many, many projects all over the country to support, especially areas in which we operate. So these are part of our commitment, to society and to the social part in Brazil. Next slide. In this slide, you can see that Petrobras has a target to remain in the first quartile of low CO2 emissions in the future. We are pursuing those targets to 02/1930, and we are planning 25% drop in total emissions. In the exploration and production area, we are targeting 32% reduction in carbon intensity. And in refining, we are targeting 30 reduction by 02/1930. Those are the targets we have, and we are going to go very focused on these objectives. The next slide is also very important that are related more to our social responsibility area. We are working very hard in terms of training our employees in human rights. We want to promote diversity, and we want also to have a good diagnosis of the socioeconomic communities in which we we operate. One project that we are developing that is a a that comprise many of the social projects we have over the country is one very focused on early childhood initiative. So we want to make sure that we are able to invest in the improvement of the knowledge and pro process of early children. This is very important to support children in terms of education and that they are they do not present gaps in the process in the future in terms of knowledge. So all all the programs in the social area that we are developing, we are trying to also give to these programs education, early childhood education focus. And, finally, I want also to express, the governance, area of Petrobras. The good practice of a cooperative governance that are part of our decision making process, they represent a very strong pillar, to sustain our business. So through this, continuous effort we are, doing, we have been able to implement a very, strong, governance, program, very effective, very ethic, and very transparent. We have done this through a new code of ethical conduct. We want also to communicate to your to our supply chain these principles. So we're not just a principle inside Petrobras, but also to communicate these principles and conducts to the whole chain of suppliers. And also, we are very happy that we have been able after six years to return to the World Economic Forum initiative, partnering against corruption initiative. This is one of the main organizations in the world to fight corruption and brings together top level, people from companies and government. And we are very happy that we have been able, to return, to this initiative recently. So our commitments are developed a governance model today that is more balanced in terms of efficiency and control, but we keep very strong the focus on integrity and transparency, zero tolerance to fraud and corruption. So these are are the messages that I want to convey to you. I will pass the the word to Andrea Omega, our CFO. ANDREWA Hi. Good morning and good afternoon, everybody. Very happy to be with you again. I will try to cover a little bit of our financial strategy. So if we start with our financial strategy, it keeps focused on four main pillars. First one, the reduction of debt and the associated cost of capital. So this has been our focus for a while. And if we look back in 2015, Petrobras shared just a small part of its value with its shareholders. 80% of Petrobras value belonged to financial creditors, so related to the net debt. And the shareholders held only 20% of the company's value. Today, that has already changed. In this regard, since 2018, we have already reduced gross debt by $4,000,000,000 But this is it seems small, but actually, we need to remember that in 2019, we added $24,000,000,000 of debt due to IFRS 16. So we were able to reduce $28,000,000,000 since then. Only this year, even in a challenging scenario, we managed to reduce our debt by $7,500,000,000 reaching the value of $80,000,000,000 in the third quarter. As presented by Roberto, the 2021 target will be $67,000,000,000 and 2022, the $60,000,000,000 In terms of liability management operations, we continue to focus on repaying the most expensive debt and increasing the average life of debt, avoiding strong concentration of amortizations. This year, we did tender offer transactions, and we also repurchased bonds on the trade desk. In total, until September, we made $5,200,000,000 of bond repurchase. And we are right now in the market repurchasing bonds, executing the make whole premium payment for $2,000,000,000 of bond. In the active liability management, it's important to mention that we know, additional to that, we have several other obligations and contingencies that can impact our future. So the effective management of this obligation is very important. In this regard, we can highlight all the work that has been done together with PETRUS, our pension fund, where we implemented several improvements. In June, we implemented a equalization plan to solve a debt of approximately BRL31.5 billion. We are now working to implement another defined contribution plan, PP3, this year for employees who have the desire to migrate their reserves to this plan. With regard to the health plan, we made significant change with the implementation of an association. We expect a cost reduction of BRL 6,200,000,000.0 in present value over the next ten years due to better management and adjustments to the new regulations, CEGEPAC, where employees start to contribute with higher percentage to the plan starting in 2021. We are also working hard to reduce tax contingencies. And in this sense, we highlight the following process. We reclassified BRL 2,300,000,000.0 to remote loss related to the collection of ICMS on import of natural gas from Bolivia. We made relevant refis agreements with the states of Rio and Espirito Santo, where we reduced BRL 4,000,000,000 in continues with a payment of approximately BRL 2,000,000,000 sorry BRL 4,000,000,000 with a payment of approximately BRL 2,000,000,000. It's important to remember as well the gain on ICMS on fiscal fees that allowed us the use of BRL 16,000,000,000 that we intend to use up to the first half of next year. In terms of the maximization of shareholder return, Roberto already covered that, but this is totally linked to portfolio management, the divestments in lower return assets and concentration in higher return assets. And as you can see from last year to this year plan, we included new asset sales like Marlin, BR and some other assets. In the optimization of working capital, this year, we started using some credit lines from banks to extend the payment term for customers without any impact on Petrobras' working capital. This instrument was important to leverage sales in the domestic market, especially in the challenging scenario that we experienced. Inventory management has been a relevant focus for the company as well, and we are looking to work with optimized oil and oil products inventories. We are also working in procurement with a program called Mais Valor, which is the financial tool for suppliers with lower costs, supporting our strategy to increase supplier payment terms. Turning to the next slide. We tried to give you here an overview of our cash flows over the next five years. Perhaps the most important point is to show the strong cash generation that the company is planning for the next years in order of $115,000,000,000 to $125,000,000,000 In the divestments, we have a range from $25,000,000,000 to $35,000,000,000 The investment cash flow expected for the next five years is between 40 to $50,000,000,000 And the E and P, and production, will remain the biggest participation. Dividend payments also show that our dividend policy designed last year tends to remunerate shareholders in a relevant way after reaching the goal of the gross debt of $60,000,000,000 If we turn to the next slide, we show the range. So we show the assets that are in the range that we just presented. With and we had some assets that in the last plan, we informed that we would add them to the plan. I already mentioned some of them, like Marlin, Albacora, BR, Marascan between others, in line with our portfolio review. In refining and natural gas, we have refineries as widely disclosed to the market and the gas assets associated with the TCC agreement with CATI. If we turn to the next slide, we see the adjusted CapEx from $75,000,000,000 last year to $55,000,000,000 with $38,000,000,000 in capital and $17,000,000,000 in sustaining investments. E and P continues to be the biggest portion, representing 84% of the total. The main difference in the adjustments from $64,000,000,000 last year to the $55,000,000,000 in exploration and production were the devaluation of the real, the optimization of exploratory investments, keeping the commitments agreed already with A and P, our regulator, avoiding CapEx associated with divestment and the revision of the investment portfolio. If we look at our deleveraging in the next slide, as I mentioned initially, the focus on reducing leverage has been constant in this company, and we managed to reach $8,000,000,000 in the third quarter, well below the goal of $87,000,000,000 for the year. We continue to repurchase debt, as I mentioned. We also see the results in the weighted average cost of debt reaching 5.8 per annum in the last quarter. In the last quarter as well, we can see a small increase, and this was a result of the repayment of the committed credit facilities that had a lower average life and a lower cost. But this is a very important insurance tool that we wanted to keep it alive for any volatility that we might have in the future. In this area, we can highlight the ten year bond pricing at the lowest yield in the history of Petrobras at 4.4%. And this bond is already trading lower than that at around 4% in the secondary market, showing a positive impact from the perception of our credit risk. If we move to the next slide, we see the strong cash generation that we have experienced continue next year. We estimate the free cash flow breakeven at 23 per barrel. This cash flow breakeven considers the cash flow generated from operations minus the CapEx. The cash breakeven that includes CapEx, interest payments, leasing and principal payments to be able to keep our total debt stable from 2020 until 2021 with a cash balance of $5,500,000,000 is the $28 per barrel. This is for the overall company. It does not include dividend payments or cash inflow from divestments. In terms of cash flow sensibility, we give you a sense in the right side of the slide. But each zero five zero dollars in the FX devaluation or real devaluation generates an additional $1,600,000,000 in cash flow, and every $10 per barrel of Brent generates $5,500,000,000 Thus this way, a scenario of brands at $50,000,000,000 and FX at 5,400,000,000.0 would be generating cash in the order of $22,900,000,000 If I go to the next slide, we show a little bit what we have been doing in procurement, and that was very important during the crisis that we just that we faced this year. So in procurement, we are focused on five strategic drivers. And among them, I will mention compliance, that is the first and maybe the most important one efficient controls and well defined procedures are extremely important in the supply process. This year, we launched the Guide to Ethical Conduct for Suppliers, and that incorporates all the guidelines in the areas of compliance, health, safety, environment and social, placing Petrobras at the forefront of the best ESG practice worldwide. This document has been incorporated into our contracts. In the early engagement, important to mention that we have been working with greater standardization of our contractual agreements and technical specifications, reducing the man hours involved in the negotiations of engineering in the engineering area and also in the legal area. This standardization initiative also supports the PROD 1,000 project, one of the most important projects we have in Petrobras. Volume synergy. We started to implement the procurement process from the point of view of total cost of ownership. In practice, this means that we evaluate the contracts looking investments with the OpEx overview involved in the long term as well. For some items like Christmas trees, we have changed the form of procuring this item and included the maintenance service in the bidding process. In terms of alignment of incentives, this is not new. We have been doing that for a while. We have bonus for suppliers depending on their performance. Deliveries ahead of time are awarded. And this is a very important fact, for example, in the chartering of FPSOs. Working capital reduction, I already mentioned the Mais Valo program, that is the financing for suppliers too that will allow us, suppliers, to get funding, to anticipate their invoices using the cost of funding from Petrobras. Everything in this area is focused on generating more value for the company. And none of this would be possible without digital transformation. And as an example of this, we will be implementing Ariba, that is an SAP tool, that will help us speed up process and ensure even more compliance. So I would like to thank you all. Those were the message for today, and I'll pass the floor to Capo. DE Hello. Hi, good morning or good afternoon, everyone. I'll start this presentation recalling our E and P strategies. I believe everyone has realized that we are increasingly focusing on deep and rooted deep waters and that our growth strategy is based on world class assets. Our proposal is to move towards a portfolio that in the five year horizon will lead us to lower production volumes after divestments have been made, but to a portfolio with greater value and greater resilience capacity to lower oil prices. Let's go to the next slide, please. With the prospect of a reduction in future oil prices, with consequent reduction in estimates of future operating generation, we just set our investments of five years making adjustments with a focus on maximizing value. We are now projecting investments of $46,100,000,000 in the period of 2021 to 2025, which represents almost 30% of reduction compared to the previous plan. The real depreciation against the dollar contributed to this reduction, as well as the fact that we have added more assets to our divestment portfolio, avoiding the investments associated with them. We also adjusted our investments in exploration. And finally, we optimized and postponed projects and also canceled projects that in the new reality of oil price are not attractive anymore. The result is a portfolio that concentrates investments in the pre salt. Next slide, please. As a result of our value maximization actions, we see on this slide the production curve that should be growing in volumetric terms without divestments and the production curve after divestments, which is relatively stable until 2025. But this curve is sustained in a portfolio that generates more value and that has greater resilience to low oil price. Looking at the year 2021, for example, we see a production of 2,750,000 barrels of oil equivalent per day before divestments and 2.72 after divestments that are yet to take place this year and next year. Looking now at the year 2025, we see a total production of 3,300,000 before divestments and a production of 2,700,000 after divestments. This difference of 600,000 barrels per day is due to divestments in onshore assets and also in shallow waters assets in Albacora and Albacora West and in the Olomarie. At the bottom of the slide, we see an increasing share of the pre salt production reaching 80% in 2025 compared to 67% of our total production 2021. We don't see numbers after 2025 on this slide, but we could expect growth in production even with divestments considering this plan due to the growth in production in Buzios where up to seven new systems are being planned or contracted to be added to the end of the plan of starting at 2024. Next, please. Next slide, please. I'd like to give you more details about our 2021 production. In this slide, we see on the left that we plan to produce 2,900,000 barrels of oil equivalent per day in 2021 in our previous strategic plan. At that time, we mentioned that this figure did not include the divestments foreseen in 2020 and 2021. Here on the slide, we are showing the second column from the left, the production planned for 2021 now discounting the 80,000 barrels per day associated with the divestments for this year and the next year, reaching a value of 2,820,000 barrels of oil equivalent per day. I want to note that this number already includes the reduction in production of 30,000 barrels associated with the bulk selling of 63 platforms in shallow waters, which we carried out in 2,000 this year. Next, we see the impact on the growth of the ramp up of our production as a result of the COVID-nineteen. And this impact occurred directly or indirectly. Directly as in the case of the delay by Asian shipyards in the construction of the platforms for the Sepia and Marrow production systems or indirectly, which resulted in a reduction in the estimated future oil price with a consequent reduction in our investments to make them compatible with the lower cash generation. We can see that the impact caused by COVID resulted in a reduction in our production of 200,000 barrels per day. But on the other hand, we see three effects that contributed positively to mitigate this negative impact. First, we see an increase in production compared to what we had foreseen in our previous strategic plan of about 20,000 barrels due to the barrel performance in reliability, integrity and safety. And this is due to lower production loss in the control and treatment of CO2 corrosion in the gas injection pipelines in the subsurface and presalt fields. In the next column, we see an increase in production when compared to what we had predicted of about 30,000 barrels due to a lower decline in production in the Satinhoa and Tupi fields, thanks to the better performance of their reservoirs. And in the next column on the right, we see a new increase in production compared to what we had predicted of about 50,000 barrels due to the fact that we have been able to produce above the nominal processing capacity of the Buzios platforms. In this figure, in this number, we are considering that the term of the co participation agreement will occur closer to the 2021. We are conservative regarding this matter. I want to note that we optimized the maintenance stops originally planned for 2021. And for this reason, we are not predicting any impact in 2021 as a result of the postponement of the scheduled stops from 2021 to '21 from 2020 to 2021. And finally, I want to mention that due to the uncertainties still present associated mostly with the COVID-nineteen, we are working with the possibility of 2021 production of rise for 4% upwards or downwards. Next slide, please. With the expectation of lower oil price in the future, our projects and assets should present a breakeven of less than $35 per barrel in order to remain our portfolio. This condition makes us converge to increasingly work with world class assets in deep and ultra deepwater that are more resilient to a scenario of lower oil price. In these assets, we have the ability to optimize our investments and costs due to our technological differential and our capacity of innovation and digital transformation. Our Director, Nicolas, will detail the impact of digital transformation on our future results. And I will go to the next slide, please. The continuous growth in our participation in the pre salt area has resulted in a reduction in our lifting costs and in our prospective breakeven, which are two key factors to guarantee our resilience to the oil price. We see a 12% reduction in average pre salt lifting costs. And as we are continuously increasing our participation in the pre salt, the reduction in the A and P lifting cost is even more intense of 43% as we see on those figures of the slide. Regarding our investments, we continue to work with very low prospective breakevens of $19 per barrel in the result and 20 per barrel in the whole portfolio. Next slide, please. With regard to the Campos Basin, it remains strategically relevant to us. I would like to note that in our previous strategic plan, we mentioned our intention to return in 2024 to a level of production equivalent to 2019, not counting the divestments we made. As we can see in the figures of this slide, our intention remains the same. We will invest $13,000,000,000 in the twenty twenty one, twenty twenty five period in the campus based renovation plan, and this amount was reduced in comparison with the forecast in the previous strategic plan due to the following reasons: increasing assets of our divestment portfolio optimizations, postponements and project cancellations, as I have mentioned before, and also the depreciation of the REL. About 10% of this $13,000,000,000 value refers to investments in exploration in the 14 blocks that were acquired from 2017 to 2019 from AEP. And in this basin, in the Campus Basin, and in 2021, we should drill four exploratory wells, all with pre salt objective. Next slide, please. To close this presentation, I want to mention that within our strategic focus on investing in world class assets in deep and deep waters, we foresee in our strategic plan relevant investments in other basins outside the Southeast Basins Of Brazil. About $1,000,000,000 will be invested in exploration in the Equatorial Margin, where we see a potential important exploration of the Equatorial Front. And we will continue with the Sergipe deepwater development project, where we expect investments of around $2,000,000,000 With this, I would like to call Director, Guldimar Torresato, who will give more information about our exploration production projects. But before I do that, I want to note that by putting together our commitments of sustainability, which were presented by Director Ardenghi, with our constant concern of reduction costs and being more efficient with which we saw in this presentation, we can conclude that we have been and will continue to be able to produce an energy that is accessible to society and with less and less carbon emissions. Thank you. Good morning. I hope everyone is well and healthy. To start my speech, I bring here the schedule of the new units until 2025. Petrobras is the leader in investment in this kind of projects in the world. In the next five years, we will have more 13 new FPSOs that will come into operation, 11 in DeepRisau and two in PoSau. Eight of them are already under construction and seven of them in China. In the next year, we will start the operation, two of these units, Sepia and Mero one. And it's important to highlight that we are keeping the first oil for both units with the most probably dates for at the end of the first semester of the next year and Meruwon in the 2021. SEPIR unit is expected to arrive in Brazil in this January, and Mero one is starting now the commissioning phase in Thailand, China. We plan to receive these units in Brazil at the beginning of the 2021. The investment of these six projects are $17,000,000,000 in Petrobras plant. Please, let's go to the next slide. Here, we see a breakdown of investments in the EP segment. As Andrea showed earlier, we reviewed our portfolio with a focus on generating value for the company, considering mainly the new oil price scenario and the COVID crisis. In the EP, our total investment for the next five years will be $46,500,000,000 and 70% will be in Prisal assets. Here, we can see the main projects with emphasis on Buzios, with 36% of our investment. 25% of this CapEx will be used in the project in the PreSal also. And also, we have investments in PostSal projects as well as in the exploration as Capo said. Next slide, please. Let's talk about the commissioning costs for this period. We plan to decommission 18 system with $4,600,000,000 This includes topside subsea and well activities mainly. The costs are concentrated in Campos Basin system, as we can see in this slide. But we will also have the commission activities on the coast of Spiritusante state and the offshore field in the Northeast Of Brazil. Please, let's go to the next one. Here, I would like to highlight important projects that are in progress in the downstream, I mean refining natural gas and logistics. First, the Jota Tres project is our third Pre gas route, which will increase the gas exported and the processing capacity from the presale assets. It's expected to start operating between the fourth quarter of the next year and the 2022. In refining area, we also highlight three projects that focus on reducing sulfur emissions that will expand production of diesel S10 with low sulfur content. This project will be in the will be a revoked at Reduque refinery in Lujanero, Revapi refinery in Sao Paulo, and the construction of a new unit at Repla refinery in the Sao Paulo state. In logistic, Petrobras is concluding the Sao Paulo duct master plan projects that are removing oil, LPG, and naphtha pipes from high populated areas in Sao Paulo. Please, let's let's go to the next slide. Back now to the upstream, I will show you in the next slide the evolution obtained in recent years in the major in the three major areas of production development, subsea, wells, and topsides. And our vision of the future always looking at generating value with newer optimizations, technological innovations and decarbonization actions. In top slides, we have captured in recent years a series of advanced and lesson learned that allowed us to improve the design and the management of this project. The ramp up performance of the units installed in the last ten years gave us an average reduction of 4% per year. As initiatives in progress now, we can highlight the strategy for construction units with less interfaces and greater alignment of interest between Petrobras and the suppliers and the use of suppliers more qualified and projects with a higher degree of standardization. It's important to mention here that we already have a series of decarbonization action in our projects with projects that involve gains of energy, efficiency and reduction of flaring of natural gas. For the future, we expect acceleration in units implementation time, CapEx reduction and increased efficiency and greater plant reliability and reduction of CO2 emission, as I already mentioned before. Please, the next slide. In well area, we capture advances with several actions as we can see in this slide, which allowed the average reduction of 7% per year in the total cost of well construction over the last ten years. We are currently working on three initiatives, the PEP 70 well efficiency program in the pre salt that is special for Buzios, the 2.33 phases that is a new well designed for postal wells, and the plug and abandonment program in order to decrease the well costs, the well abandonment costs, all of them with additional innovations, new optimization and simplification. Our future vision indicates that we will have wells with greater reliability using rigs operating with more automation and with digitalization and the use of intelligent electrical completions. Please, next one. In the subsea area, we have captured advances over the last five years, an average reduction of 7% in the cost of interconnecting wells, as we can see here. We have now several initiatives that will bring us more benefits, including subsea design and subsea configuration as well as the improvement of our procurement strategy. In our future vision, we have additional qualification and standardization for subsea equipments and new technologies for ultra deepwater, I mean, until 3000 meter of water depth, a diver less and automation operation and growth and the growth of synergy between subsea processing and top sites plant. On the next slide, I will bring the innovation by Petrobras that we are working on. Here, we can see HiSAP that has its qualification expected to 2025 and has the potential to enable the production development of fields with high GOR and high CO2 content at Meru and probably Jupiter. This initiative involves several areas of Petrobras, including our R and D center. It's a subsea separation system capable of segregating CO2 on the seabed, with the great benefit of the bottlenecking gas processing plant in the top sites and increase the recovery factor of the field. Other advantage of this technology are acceleration of the oil production, lower CapEx, lower OpEx during the operation, lower implementation time and the emission reduction. Thank you for listening, and I'll pass the word to Ms. Ameliezi Lara. Good morning. It's a true pleasure to be with you on this Petrobras Day, presenting an overview of our strategic plan in the areas of refining, natural gas and energy. Regarding the refining segment, we highlight two macro strategies. The first one is to focus on refining units in the Southeast Region of Brazil, close to the large fields of pre salt and the largest Brazilian consumer market. That includes the metropolitan areas of Rio De Janeiro and Sao Paulo. The second strategy is to transform the remaining refining path into the first quartile of international benchmarking in all dimensions. This is related to efficiency, low cost, profitability with less emission of greenhouse gas and producing more sustainable oil products with higher added value. Following this way, we will be prepared to compete in an open market and in a low carbon economy. Next, I will detail the actions that related to these two macro strategies. Next slide, please. As I said, our strategy to focus the premium market involving involves selling part of our current refining units. Today, Petrobras has 13 refineries located in various regions of the country, and we will keep five refineries concentrated in the Southeast. Despite the difficulties that we all had this year as a result of COVID restrictions, We are progressing very well to fulfill our commitments with CADI for the opening of the refining market in Brazil. Our remaining five refineries have a high degree of logistical integration with a high degree of operational flexibility, and this will allow us to continue pursuing opportunities for cost optimization. Our portfolio management actions scheduled for our subsidiaries and affiliates considers the closing of the sale of liquid gas scheduled for this month, having already obtained the approval of CALI. We also have the sale of shares in BR Distribuidora, which have already announced and expect to happen in a more favorable market moment. And finally, the sale of our stake in Braske in a model to be announced in due course. We also have our divestment in Petrobras biofuel, which should be concluded in 2021. For the next five years, we are forecasting a CapEx of $3,700,000,000 34% for the development of new projects for the refineries that will remain in our portfolio. These are projects for hydro treatment units at Redug, Hivapi and Hepla that Ho Chi Minh presented, aimed to producing diesel with low sulfur, diesel S10. We are also studying the possibility of integration between Reduki and Gaslube in Itaboray, where we intend to invest in the production of more advanced lubricants from Group two and in addition to high quality fuels with very, very low sulfur content. I emphasize that 5% of investments will be directed to operational efficiency projects to maximize energy efficiency in our refineries, lowering the greenhouse gas emission rates and optimizes also the reuse of water. Next slide, please. In September, we launched BioRefining 2030 program, which includes projects for the production of a new generation of fuels, more modern and sustainable than the current ones, such as diesel with renewable content and also jet biofuel. Renewable diesel is an advanced biofuel produced from vegetable oils and with the same chemical structures as conventional diesel oil capable of reducing greenhouse gas greenhouse gas emission by 70% when compared to regular diesel and by 15% when compared to conventional ester based biodiesel. Renewable diesel is the third most produced biofuel in the world, behind ethanol and biodiesel produced from by conventional routes and is the biofuel with the highest production growth rates nowadays. Next slide, please. The production of the renewable diesel in coprocessing, in hydro treatment units already existing in our refineries, allow the production of diesel with this renewable content. We but we are also working on greenfield projects that could be able to produce both jet biofuels and renewable diesel in dedicated units. It will take a longer time. We are now awaiting authorization for the National Energy Policy Council and AEP for the marketing of this renewable diesel in Brazil. The recognition of renewable diesel for the proposed of meeting Hannover Bill's mandatory target is important, not only to make its production economically viable, but also for diversification of supply and also to reduce the side effects on trucking genes with the addition of the conventional biodiesel in diesel. These programs, these problems are recognized in Europe and The United States, which have established maximum limits of 75%, respectively, for the addition of the conventional biodiesel in the conventional diesel. Next slide, please. In the gas and energy area, our major strategies are also in line with Petrobras strategic pillars, like Roberto mentioned, and involve actions seeking to add more value in the marketing of natural gas and the optimization of our thermoelectric portfolio with a focus on generating value of the gas produced by our upstream segment. Next slide, please. We are forecasting a CapEx of $1,100,000,000 in our plan with emphasis on the completion of Itadorai natural gas processing plant, as Hujima mentioned, which will receive gas from Route 3, expanding the integrated capacity of pre salt routes to 44,000,000 cubic meters per day. By increasing and integrating the gas flow network of pre salt fields, we are promoting greater resilience and safety to our oil production projects. We are also investing improvements to our gas turbines to increase power and operational efficiency as well as control and startup systems. Next slide, please. In line with the strategy of adding value in the gas market, we expect to reach 2025 with a significant expansion of our gas of our capacity in the regas terminals through the expansion of the Guanabara Bay terminal from 20 to 30 cubic meters per day with a total regas capacity in 2025 of 50,000,000 cubic meters per day. The startup of Itaburai gas processing unit, We also add 21,000,000 cubic meters per day of gas processing capacity. We are also leaving the gas transportation and distribution sector in line with the commitment with Skagi. In our thermoelectric units, we intend to maintain a generation capacity of 4.3 gigawatts, maintaining our focus on more efficient natural gas units with a focus on generating value for the commercialization of our gas produced by Petrobras and seeking competitiveness in participation in the auctions promoted by the National Agency of Electric Energy. The last slide, please. With the opening of the gas market, we continue to be a relevant player, but we are leading Petrobras monopolistic position in the transportation, import and sale of gas. As a result, gas demand in Brazil will be met by different players competing in an open and dynamic market. As for Petrobras, we will also be looking for efficiency and optimization for our offer portfolio consisting of our own production between 40,000,050 cubic meters per day gas imports from Bolivia, around 15,000,000 cubic meters per day and our LNG imports. I highlight the speed of these movements. We will evaluate from having an almost integral participation in the internal gas supply. And in four years, we will reach levels close to 55%. We understand the importance of this diversification for the Brazilian market, but there is still a need for regulatory advances in the sector. Thank you. Now Andre, the floor is yours. Thank you, Anelise. Good morning and good afternoon. The trading logistics office was created earlier this year and already reflects the opening of the refining market in Brazil. The objective was to place more emphasis on the function of marketing, sales and logistics and also to enable our role as those responsible for harmonizing our productive chain with market demands. Our entire team has been working hard to implement a high performance culture and a customer centric mindset. In this sense, I would like to share with you our ambition for the next years. We wanna be the first choice of our clients by offering sustainable products through efficient trading and logistics solutions. We have several work fronts in order to maximize value creation on marketing sales, logistics solutions to better serve our clients and also to better serve their E and P demands as well as various actions to improve inventory management practices in the company. For instance, we have obtained excellent results in the diversification of our portfolio of clients in three continents, which has been fundamental for our for us to beat several records of oil exports already commented by Roberto. We continue with the objective of keeping our low sulfur bunker oil as a reference in the world with tanking and mixing solutions in the main markets. With regards to diesel and gasoline, our largest volumes, we continue to sorry. We continue to, act in order to ensure competitiveness in all markets in which we operate, bringing new solutions to even more aggressive to be even more aggressive in the domestic markets, such as our auctions that already represent over 10% of our volumes. As has already been commented by Roberto Ardenghi and Annalise, we will enable a new portfolio of refined products with lower carbon footprint as bunker and renewable diesel, jet biofuel, in addition to the development of nonfuel products like lubes, paraffin, solvents and petrochemical feedstocks such as naphtha and propane. With regards to logistics, we are enabling solutions to expand our delivery capacity of low sulfur diesel, for example, in the Midwest Of Brazil, which due to the agribusiness growth continues to show a great potential for increase in diesel consumption. Through digital transformation initiatives that soon will be better detailed by Nicolas Simon, we are increasingly improving our market intelligence information. We are also developing AI based simulators capable of anticipating movements of our competitors in the competitive market. We are evolving a lot in asset optimization. As an example, 12 ships were withdrawn from the Transpetro operation in 2020, and another five will soon be withdrawn. Average fleet age of Transpetro has dropped from fourteen to seven years through this year. The operational availability of our ships also reached 99.1% in the third quarter, the best result in our last three years. As already mentioned by our CFO, Andrea, we had a reduction of more than 30% in the operating inventories of oil from April to today. We also continue with a great effort of having a better alignment with our wholly owned subsidiaries, Transpetro and PBLOG. Such alignment has been crucial during this tough period that we are experiencing this year. As for spare parts inventory management, we are positioning our team to lead as a conductor of an offer, our inbound supply chain. During the next year, we plan to cut by half the number of warehouses that we operate in Brazil. For the remaining ones, there are several projects focusing on the digitalization of their processes. Finally, there is a whole set of activities going on related to discarded materials and scraps in order to increase control and organization of those kind of items. We foresee a promising future for trading and logistics. Our initiatives and projects on development with our research center, Sandis, cover from additive manufacturing with three d printing of critical items to a whole new operations planning model, also including IoT and unmanaged vehicles, not only to transport the small and critical parts, but also to monitor the environmental conditions of a given area. Finally, there is a very interesting initiative with digital ship with a good amount of automation with focus on operational and energy efficiency. We plan to invest around $2,100,000,000 from twenty one to '25 in logistics, not only on pipelines, but also on ship docking and on maritime terminals, such as the one in Sotus that has a bidding process to be launched in the 2021. As in other areas of Petrobras, we are also dedicating efforts to actually manage our portfolio of assets in logistics. We expect to have a leaner and more efficient logistics footprint in Brazil by 2025, keeping eight maritime terminals in the Southeast, one in the South and one in the Northeast Of Brazil. We also plan to have 23 onshore terminals in the Southeast and two terminals in the Midwest. As for our integrated pipeline network, we'll focus on our 82 pipelines in the Southeast and six pipelines in the Midwest, which account together for over 5,400 kilometers of pipelines. In this last slide, I'm bringing the change in our oil sales profile. We have been working on expansion of our global client portfolio by developing new markets. This year, we have already exported our crude oils to 45 refineries located in 18 countries on three continents. Such diversification of clients was key for our export records during the pandemic, and we plan to move further. As you can see, we are planning to double the average export volume in 02/2021 and 2005 when compared to the average export volume from 15 to 19. Why is this happening? Well, we are planning to sell half of our refining capacity until 2025 so the new owners can decide whether or not they are going to keep buying Petrobras oil to feed their refineries. In this 2125 plan, we are being conservative by considering that a relevant portion of the oil currently being fed to our refineries will be exported. If this need to increase export is confirmed, Petrobras will have the export capacity to deal with those projected additional volumes. Well, having said that, I'll pass the word to Nicolas Simon. Thank you all. Thank you very much, Andre, and good morning, everyone, or good afternoon. What we are going to see right now is the strategy of digital transformation and innovation. As you can see, the strategy is across all the business unit or the areas of Petrobras. But here, what we are going to highlight is some, I think, important measures that we would like to pursue. First of all, the strategy of digital transformation and innovation is focusing in dimensions. One dimension is the green light here in the right side of the slide. We are focusing in the go digital dimension. That is it means to change and to work in the legacy of our technology, architectural and technology platforms, rethinking the technology that we are implementing in place. And also making the strategy of make or buy applications in order to accelerate the digital transformation in the company. The second dimension that we are focused on is the go lean part, is the purple line here in the right side. That we mean we would like to have a lean Petrobras, less bureaucratic, more paperless. What we are focusing in that dimension is to be a more digitalized processes with more robotic or implement robotic automation in Petrobras and focus in our shared service center more digital. But as Roberto highlight also, the digital transformation in a company is through people. That means that we need to focus in a big digital part or a big to focus in that in this dimension. It's a cultural transformation process, as Roberto say. It's a new way of working. We are implementing a shared methodology, design thinking, hackathons and an ecosystem that we can move forward with our colleagues in Petrobras in order to recycle the knowledge that we have internally also in the company. In the left side of the slide, you can see different technologies that we are moving on. Of course, have artificial intelligence analytics, innovation ecosystem, a child at scale. As Roberto said, we have eliminated the barrier of Petrobras in order to connect more the technology areas through our business unit or corporate areas in Petrobras. We have a huge challenge also in connectivity. We are thinking to implement, for example, the offshore, ocean fiber optic to connect our platforms in a high speed connection. But also what we already have, we are a lower we have a low orbit connection in order to increase the speed and, of course, take advantage of all the technology that we are implementing in Petrobras with the platforms and also in the refineries. What I will explain in the next slides is what we are doing in the different corporate areas or business units. Here, for example, in Upstream, we are focused are focusing artificial intelligence and analytics. We are focusing digital doing PRESAL production systems innovations and also augmented reality. To take one part of each one of these technologies, For example, why we want, for example, artificial intelligence analytics. For example, to predict maintenance for preventing platform shutdown is one example. I won't be very I won't detail all the projects that we are having here. But for Digital Twin, what we want is to have the digital blocks. That means we want to have the digital of the salt that we are working in order to be more predictive in the way that we are working. Also exploring more our strategic projects like XCM, X100 and Pro1000. Of course, for innovation, we are focusing a lot in lower carbon emission as Ardenghi and other directors explained, but also to reduce the human risk exposure using drones, our emerging analytics technologies and augmented reality to navigate to in order to do asset inspection and maintenance. What we want, if you see the three blocks at the bottom, we want to integrate data platform, high performance computing increase. We are increasing our capacity of processing in order to reduce the time of simulation in 80% approximately and offshore connections What we want to be is a data oriented company. Like as Roberto highlight also, we have 67 of data that we need to transform in information. When we see downstream, we are doing a lot in order to increase the efficiency of the downstream business unit, but also just to give some examples of how powerful is the technology in order to add value. In Digital Twin, for example, we are implementing Digital Twin in some refineries. But what we capture until September 2020 was already $125,000,000 in gains. That means that we have a huge potential, for example, with Digital Twin and ProFiniti, estimated in 173,000,000 a period. Of course, we're still implementing mobile devices, assistance for inspection, operation and safety. We want to also implement virtual reality, doing some partnership with some strategic partners. We have implemented artificial intelligence and analytics to predict automation, shutdowns and failure diagnostic. And also, we are doing a lot of innovation in downstream to add value, like Annalise explained in her presentation. Please, can you go to the next slide? Running through commercialization and logistics, well, Andres explained very well in the slide, but we are really focused to have an air sea aligned operation performance analytics and optimizations. That means that we are implementing artificial intelligence and analytics across through the company in order to accelerate the efficiency in the company. We have purchased with augmented reality, but also we are focusing in integrated technological platforms like SNOP Evolution and CRM. As Andre said before, we want to have a customer centric perspective. For that, we are implementing a CRM three sixty in order to have the full view of our customers and focus in an or build an ecosystem to focus in the user experience also for our customers. And of course, we have a competitive market intelligence supply chain. We are focusing a lot in IoT, RFID technology and also in integrated data platforms in order to have a lot of information and intelligent market indicators that give us or push us to be one step further in a predictive way. Can you move forward, please? Also in the corporate areas, we are doing a lot. Andrea talked about some projects. But for example, in digital procurement, we are implementing Arriva. As Andreas says, our the more value program that is a lot of is technology platforms in order to add value to have a lean procurement and a more efficiency one. For digital HR, we are implementing artificial intelligence. We are implementing e learning in a way that we can recycle our colleagues in this new Industry four point zero and focusing also in the employee experience. It's something that we like we put the customer in the center, we are putting the employee in the center also. In digital finance, we have a lot of strategies of digital process for that one. But one that is very important for us, of course, is blockchain. We are analyzing and implementing this technology in order to add value to the finance area. Digital legal is an area that we launched a platform in January that allowed us to reduce to have a lean legal in place reducing more than 20,000 documents already this year. That means that we have paperless, we have more digitalized processes. Of course, with HSC and COVID response, we did a lot in order to connect with the society, but also internally implementing technology to be to have a company more healthy and take care of one of each other. And for digital shared service center, what we are focusing is to implement technologies to have process more or digitalized process and do a robotization of the process itself to be more, how do say, efficiency in that way. We believe that with S4HANA, the migration that we are doing of SAP to S4HANA, implementing digitalization of the processes and robotization, we have a huge opportunity to have a lean, less bureaucratic Petrobras. Want to be from working a B model way in order to just not maintain the day by day operation, but also to increase innovation and digital transformation in the company a high speed. I think with the COVID, of course, we have a sad Easter in the world. But in Petrobras, we believe that with all this transformation that we need to do, we put almost 30,000 people in home office. I think we evolved in digital transformation six year we did six years in six months. And I think we are very proud of the movement that we are doing together. Can you pass through, please? And to finalize what we the message that I want to give to you is that we are focusing also to build an innovation ecosystem. What we are doing in the last year was to open the or to break the barriers from Petrobras to start selecting startups, for example, but not only startups outside of the company. We have a program that we call startups from outside the company that we engage more than 500 startups, and we select 23. But also, we are innovating in that part, selecting or engaging startups internally in Petrobras. We believe that we have excellent professionals with excellent ideas, and we need to find a way that we put the ideas of the people that we have internally in place also. That means that, for example, internally, we engage 93 startups, and we select 15 start ups. And in the innovation ecosystem, of course, what we are doing is a partnership, for example, with MIT in a program that we call MITREIT to build an accelerating program focusing on sustainability and energy here in Brazil. We are going to launch an open innovation platform in order to connect to the world in order starting from a need or a problem, connect with the world in order to have the solution and implement programs there. We have there our R and D center that we call the Lab of the Lab because we have 147 labs of innovation. And we are very proud because it's the largest research center in Latin America. And with this new home office or anywhere office like we call, we are also preparing to change the layout of our corporate areas or buildings in order to have more collaborative areas with the concept of smart office and coworking dimension. We are breaking and be open. If we are thinking to run a company in an agile mode, we need to also think the way that we are working. But we believe that we are very in a high speed move to add value to the company. It's not technology by technology, but it's technology and innovation to add value to Petrobras. Thank you very much, and pass through the floor to Carla. Thank you, Nicolas. We also would like to thank you, all the people who follow us through Twitter. Your questions will be answered on the comments. So now we'll start our Q and A session. Our first question comes from Frank McGahn with Bank of America Merrill Lynch. And he has, in fact, two questions, and both of them are for Capo. So Capo, how is the company thinking about growth? Clearly, the emphasis is on high grading assets, and it's expecting a net flat production over the planned period when output from divestment is excluded. But is the expectation that the underlying growth will remain solid driven by pre salt assets for the planned period and likely beyond the planned period? Frank, thank you for the question. Yes. My answer is yes. That's possible. As I pointed during the presentation, after twenty twenty five, we could expect growth in production even with divestments considering the plan due to the growth in production in Buzios and where up to seven new systems are being planned or contracted to be added to the field from 2024. So the answer is yes. It's perfectly suitable to think about this perspective. And the second question also from Frank is regarding last year plan. So in last year's plan, the Campos Basin was expected to bottom at 800,000 barrels of oil equivalent per day in 2021. In this year plan, that is now appears to be a little bit lower at 0.7. What's driving there? Is the is it greater decline rates, slower investments in revitalization projects or any other factor? Well, Frank, actually, it's a combination of some effects. Divestments, we closed in 2020, both balling of shallow waters platforms in the campus basin and reduction in our investments to make them compatible with the lower cash generation. So I think, those three factors are the main factors that we could consider when we look at what we presented, what we expected last year and what we are showing now. There were some differences between them, particularly it was due to the fact that we have to recombine our portfolio in order to cope with the COVID as well. Thank you, Capo. Now we have questions from Rodolfo Angeli with JPMorgan. So the first question is about refinery. So discussions on refining divestments have been mostly focused on the process that are more advanced, like Helane, Hepar and Rafati. Could you please provide some color on how are the process and interest for the other assets such as Genesee and Regatia? Hi, Rodolfo. Yes, as you mentioned, these three refineries are in a divested process of divestment. We still have three more that we already received binding offers, like Rema, Lubino, AM6. So, in this case, we considering that next week, we are going to receive the binding offers for HEPAP and HEPAR. We'll have six refineries already in a binding phase. HEPAPI and HENESTI will be the binding phase for these two refineries will be in the 2021. The reason is that due to the COVID, we have to postpone some site visits, and we left these two refineries by the end. So we expect to have the buy in the offers by February, March next year. But things are going well, and we receive interest for all eight refineries that are in our divestment plan. Thank you. Thank you, Anneliese. The second question from Rodolfo is for Chiarini. So Chiarini, you mentioned that about 42% of your oil production should be exported in 2021 to 2025. How do you see the demand for Petrobras crude? Will China's independent refiners be the key customers? Or should we see other players, such as India, for example, becoming more relevant? You for your Rodolfo. Well, we see a strong demand for Petrobras crude in the coming years. Petrobras has a solid presence globally with a very diversified client portfolio. Currently, China is the main market for Petrobras crude oil exports, being the independent refiners, an important outlet that supports the prices in China. But we also sell for major refineries there. Although we do not expect this configuration to change drastically in the next years, other markets also play an important role in our sales strategy. For example, premium clients in Europe and in The Americas. Egypt is also an important market being on our top five destinations market in the recent years. Thank you. You, Karimi. The next question comes from Luz Carvalho with UBS, and they are both to Andrea. So Andrea, we have been using the iceberg analogy to illustrate the impact from divestments in your cash flow and balance sheet. We mean that we usually have visibility on how much cash Petrobras can collect, but we don't have much visibility about how much the divestment can impact your OpEx, CapEx, EBITDA, cost of debt and etcetera. My question is how much of these factors are already embedded in your forecast vis a vis the divestment forecast? So Luis, thank you for your question. We on the cash flow that we show for the next five years, actually, we incorporated all the effects from the divestments. So we are not just adding the funds that are coming from the divestments, but we are taking out the revenues. And actually, CapEx is not really relevant, so it's not really affecting CapEx as well. And in terms of debt, we take a look for that, we really considered all the uses and sources. So we look at it in a corporate overview. So all the debt that is needed or all the debt that we are going to repay is under the overall portfolio of debt. And we whenever we do the financing of Petrobras, we look at the overall. So there is nothing attached to the items, but definitely, the divestment funds are helping us to deleverage and to invest in other assets that have higher return. Thank you, Andrea. The second question also from Luis is your recently adjusted dividend policy. Now the company can pay it dividends even under accounting net loss scenario. The management proposal to the Board in general lines would be to equal dividends to both preferred and common shares or until we reach BRL 60,000,000,000 gross debt level. We should see preferred shares having higher dividends than common shares? Okay, Lee. Thanks for your second question. We have good flexibility to the Board to be able to pay even in a scenario with net income lower than zero, as you know, but always with a net debt reduction in the last twelve months and payments with reserves. So it's just to have flexibility. We are we don't have a discussion with the Board around that yet. Considering the equal payments to ordinary and refer, we will always try to pay the same, but it's not an obligation. So it's just that we will try. If possible, we'll pay. If not, it's not an obligation. And definitely, we believe the higher payments will come as dividends will come after we reach the $60,000,000,000 gross debt. So 2023 on, that's when we believe we are going to be paying more dividends. Andrea, now we have questions from Bruno Montalay with Morgan Stanley. And the first question is for you as well. So thinking about capital allocation priorities and understanding that Petrobras is generating very healthy cash flows, how does the company think about dividends distributions within its priority ranking? This is a metric which is well regarded by global oil investors. So it would be interest to hear how the CEO managed at Petrobras sees this team. REPRESENTATIVE:] Andrea? Sorry, I was everything locked here. Bruno, thanks for your question. So if we look in the cash flow figures, you will see that the range for dividends and the range for debt reduction is the same, so 30,000,000,000 to $35,000,000,000 So the priority is the same. The timing is different. So we will be working harder to get to the $60,000,000,000 total debt that is I believe it's important to keep to make Petrobras be more sustainable, to have a lower cost of capital. So it's something we need to focus at the beginning. So if I would say both are very important, but maybe up to 2022, we'll be more focused on the '11 and after 2023, we will have the dividend payment as a a more important, how can I say, contribution in the cash flow? So I would say we should balance those two things. The next question from Bruno is for Kerim. So Kerim, regarding the refining market, as a dominant agent, Petrobras is not currently able to differentiate contracts for different clients. When will the company be able to differentiate contracts? Will the company only be able to do it after it sells all the refineries as per the agreement with CADE? Or does this have to reach a certain level of percentage of the total market? Or something that's still pending discussions? RAMON Excellent question. Thank you, Bruno. Given the current regulation, our understanding is that even the new owners of the refineries wouldn't be able to differentiate contracts among their own clients. We expect for sure more flexibility in the rules as we will have more players in the refining markets in Brazil in the coming years. But such debate is still ongoing. Thanks. Thank you, Karim. The next question comes from Andrea Chien with Itau BBA. Last year, Petrobras during the transfer of rights auction made a bid on the surplus volumes for Buzios fields along with the Chinese companies. So he has like an ABC question. So a, Capo, could you comment on how the negotiations regarding production sharing have been evolving? The contract states that there was an eighteen month deadline to reach. Is there any risk of this matter going to arbitration by and P? And finally, so the partners would have to reimburse Petrobras for the losses stemming from the production curve dilution. Is there any sense on how and when said payments would be made? UNIDENTIFIED Andre. Thank you very much for the questions. Well, regarding the negotiations of the production sharing, we have been negotiating with the PPSCA, CMUC and CNOBC and the negotiations have progressed very well. We are in a good pace and we still believe that it will be able to find a common ground among the parties until the end of this year. And after that, we have the approvals of the A and P. And so we think that at the beginning of next year, A and P could approve the whole negotiation that we have made and the agreement. Although in our projection, as I have mentioned in the presentation, we have for a conservative reason, we have set the sanction or the the final agreement at the 2021. But we still think that we can close it this year and A and P could approve it at the 2021. About the any risks of arbitration, we do not foresee arbitration regarding the co participation agreement terms. And as I mentioned, negotiations are advanced and then we hope that the co participation terms will be agreed this year and A and P will approve it at the beginning of next year. And I think that was about calculation and the payment. Payment terms are part of this ongoing negotiation with CMUC and CNOGC and we expect to receive the amount from 2021. REPRESENTATIVE:] Thank you, Capo. So now we have questions from Regis Cardoso with Credit Suisse. The first question is for you, Capo. It's regarding divestments on E and P business. So divestments can reduce production by some 600,000 barrels per day. That is about 20% of your current production. Is it fair to assume that the impact on the E and P EBITDA is disproportionately smaller because you are selling the least profitable assets while holding onto highly productive pre salt fields? RAMON Thank you for the question, Regis. The straight answer is yes. You are right. Considering our strategy, we are focusing on assets that bring more value to our portfolio. So it makes sense what you are saying. RAMON Thank you, Capo. And the second question from Regis is for Roberto. So Roberto, in your view, which assets, say, will be most material? It's feasible to have closing of refineries, Avocado and Marlin still in 2021. How about the offshore gas pipeline, Rota one, two and three? RAMON Thank you for the question. First of all, it's difficult to speculate about values. I can we still do that when refinery or oil fields, we have many oil fields per se, the group of oil fields could be much more valuable. So it's a difficult question. The important thing, the most important thing that we are following our divestment program, it remains intact and alive. As Anneliese mentioned, we have right now four refineries, which reached the final stage of sale. And we have two more that we will be receiving binding offers on the December 10. So remains only two of the refineries that will get the binding offers in the first quarter of next year. With relation to the subsea gas pipelines, the so called routes, Route one, Route two, Route three, we are discussing the structural transaction. We have partners. We have to talk with them to negotiate. Our plan is to IPO a company, to form a company, a midstream company and to IPO At the moment, it's very difficult to make any commitment about when it will come to the market. But I am very confident that it will come, if possible, still in 2021, probably in the 2021. But we have to move fast. We are trying to do this because it's very important. All the divestments are very important, not only in terms of debt reduction, but in terms of generating value to finding the best allocation of our capital. And the ownership of mainstream assets does not make sense. We are user of the service. But to be a client, one doesn't need to be the owner. In this area, our goal is to be asset light. REPRESENTATIVE:] Thank you, Roberto. We have also questions from Gavin Wheelie with Scotiabank. And the first question is for you, Roberto. So with the revised dividend policy and current cash balance well above $5,500,000,000 and the material reduction in net debt that was achieved during 2020, should we be expecting a dividend in 2021? And any guidance around what level or yield would you be targeting? What would be the timing of such discussions with the Board? RAMON Well, thanks for the question. First of all, oil companies are not cash cows. We have seen recently since 2015, all companies paying hefty dividends and financing it through debt. We are not going to do that definitely. It's in the process. We are very focused on capital management and we have to make decisions about investment, debt reduction and dividends. We did not discuss yet dividend distribution for 2021. We will start the discussion only next year. At the moment, ALVAREZ there is no answer to your question. Thank you, Roberto. The next question also from Gavin is for Rugimar. So Rugimar, FPSOs for Marlin I and Itapur have been delayed. Outside of COVID, what are the key risks of bottlenecks facing timing of FPSO delivery versus plan? Forecast shows some potential tightness in the FPSO market, CPR capacity emerging in 2024 and 2025. Any concerns there for Abuzu's development? RAMON Kevin, thank you for the question. First, it's fair to say that Intapu project actually has been rescheduled one year earlier from 2024 to 2023 with our value creation strategy to adjust P71 to Itapu. Mining about mining, this project has been slightly adjusted in order to seek better value creation due to scope optimization and CapEx reduction. Outside COVID, we can foresee normal market restrictions. And we see the potential restriction as we always see the stress in supply chain total media items for our FPSO's construction, provision in phase of high complexity units that we have some of them and market restriction for high complexity of peso in Brussels VII and Brussels VIII development projects, despite our improvements we have made like alignment of interest, our rigorous process selection of suppliers to have better suppliers with higher capacities. Our main concern is the shipyard performance. Thank you. ALVAREZ PEDROSA:] Thank you, Guzman. We have also questions from Vicente Falanda with Bradesco BBI. So he has one question, and this is for Capo. So Capo, given that your output curve considers the risk translation of the Campos Basin, don't you feel your output estimates for 2025 are strongly conservative? The pre salt is not declining yet and if the Campos Basin will also not decline, then your net output growth will be defined by the platforms you add. This would result in a much stronger output for 2025 compared to the 2,700,000 barrels per day in your official estimates. RAMAKRISHNAN Well, Vicente, thank you very much for your question. In fact, I don't think that we are being conservative. We believe that our estimates reflect our best vision at this moment. As I have presented during my presentation, we saw that we are having a better performance in the Tupin and Sapinoa fields than we had expected at last year due to the fact that the decline of production is lower. But in fact, we are still at the beginning of a lot of platforms. So we also need to consider the effect that we could have on the divestments of some all the plans that we have for the company's basin and also the performance of the company's basin. We have mixed it all together and made a risk analysis. So we think that we are not being conservative. We are being realistic about that. But one point that we should stress is that we have the production is flat, okay, during the period of 2021, 2025. But it's very much we are very much focusing on value. And then after the 2025, I think that we could expect an increase in the production due to the fact that those will also come on stream with a lot of platform that we are planning and contracting at this right moment. RAMON Thank you, Karp. The next question is from Liliana Yenk with HSBC. So the first one is for you. So could you please disclose the decline rates that underline your production curve guidance for 2021 to 2025 for pre salt fuels as well? Since they might be close to zero at many fields as they have only recently started to produce, could you please give us a color on the decline rates you have seen for different reservoirs? RAMON Thank you, Benjamin, for the question. Well, we are sustaining our production in fields like Buzios and Mero due to the new wells that we will go on stream in the years to come. And so I think that we could say that there is no decline in those fields that we are adding wells in order to complete the processing capacity of the platforms. And in the 2P and Sapirwa fields, where we have some decline phase and we have just begun in some platforms. We are also working in the reservoir management to extract the greatest possible value from them. But if you want to consider some fever for the decline of production in those fields as we don't put any other wells on the platform. You could think about a range of 5% to 10% per year as a guidance. I think that you it's good for you if you have this figure because it's better for the prediction that we are going to make in your model. Anyway, think that as a whole, we could see a very, very low figure regarding the decline of production when it comes to the pre salt. UNIDENTIFIED Thank you, Carlos. The next question also from Liliana. So it's a mix. So maybe Andrea and Roberto may step in as well. So can you provide color on your initiatives to reduce pension related and healthcare medical expenses for your beneficiaries? And let us know if you have any targets of savings in this area. Should we expect REPRESENTATIVE:] lower expenses ahead or current efforts would be in the lines of preventing current expense from rising significantly? So I don't know if Roberto wants to start, but I can start with pension. So this year, as I mentioned, we did already the equalization plan for pension. And we are working now with the approval of a new defined contribution plan. So if more what we want, if more people move to a defined contribution plan, those plans tend to be generating less deficits than the defined benefit plan. So it will be positive for the future of Petrobras. In the case of the health plan and Roberto can add at any time, we have been we just implemented a new association that we expect to reduce costs over time by renegotiating contracts with health care providers and better managing the plan really with a better use from the beneficiaries. And adding to that, we are increasing the percentage of the healthcare cost paid by employees from 30% to 40% in 2021 and to 50% in 2022 according to CGPAR regulations. So this is embedded into our regulation. And as we published, we expect a $6,200,000,000 present value to be realized over ten years of the reductions of cost in the health plan. So I believe it's we have a really good, how can I say, perception of cost reduction over time? I don't know if have It was the total response, but if I may, I'm willing to add some points. First, the healthcare was managed by Petrobras itself. And it was very badly managed because we are not specialists in managing healthcare plants. We are a company. And there was a loss of BRL2.5 billion per year. So in the service, we're considered poor by many people. Now we formed this private association. It's not a subsidiary of Petrobras, it's independent. We hired people from the market, people that are specialists in healthcare plans. And as Andrea mentioned, we are cutting costs in the management of the healthcare plan. It was very expensive. It's converging to a much lower cost management. And alongside this, as Andrea mentioned, we are moving for a situation in which the employees share only 30% of the costs to 50% in twenty ALVAREZ twenty two. That's all. Thank you. Thank you, Roberto. Thank you, Andrea. The next question is from Christian Audi with Santander. And it's for Roberto. So Roberto, first question would like to thank you for continually improving transparency and level of detail that was provided with this strategic plan. We are seeing particularly the global oil companies in the Europe and also in U. S. Adjusting their long term strategy more and more towards greener forms of energy. That said, Petrobras has this amazing profitable productive result, which generates much higher returns than wind energy might. How do you plan reconciling both in the medium and long term? Thank you for the question, Christian. RAMON Well, as I said, our strategy towards low carbon is to use technology in our core business to be a low carbon emission company. With respect to premium forms of energy, Frankly, we did not have the competences to introduce business. We had some initiatives in the past. All of them trade. They generated some substantial losses. And we are not going to invest in assets that will give us very poor returns. Our goal is now is to clean our house to, as was mentioned, to launch fuels, which lower emission that will meet the needs of our clients. But we have a lot of research. We are doing a lot of research on renewables, but for the future. We do not plan to invest $1 in renewables as a policy for the next five years. But perhaps in the middle, we find some technological breakthrough and have that will allow us to start thinking about entering this type of business. Because to produce solar or wind energy, wind powered energy is totally different from the oil business. This is a different business. And we still win several technological challenges. So we rather follow this strategy. We have seen European companies making big announcements, not The U. S. Companies. They are more like us. And our focus will be ever to create value for shareholders and try to reconcile value creation to shareholders with lower carbon emission. This is our goal. So if you do that, we will try it. If you do do that, we will start investing in low return projects. We will not by the end of the day, we will fail and do not accomplish our mission that's to provide very ALVAREZ good products at low price to our clients. If I may add, Roberto, as you mentioned, one part of this strategy is looking for the project itself and see how we can improve efficiency and lower the carbon footprint. In the case of the pre salt, that is the question we have, we are not just making a big effort in terms of carbon capture and use and reinjection. This is the larger plant in the world in terms of carbon reinjection. And this carbon injection is also very good for lowering the carbon footprint of the project, but also improves the efficiency of the project because it increases the recovery factor of the project itself. So it's a double success in this case. And I think that the carbon capture ALVAREZ in the pre salt is a very good example of what you mentioned right now. And now that we have the high step that could be will allow us to go further in carbon capture. And we have also the projects on all platforms that depend on the authorization of the regulatory authorities in Brazil that will save much more carbon emission in our operations. ALVAREZ Thank you, Roberto. Thank you, Arvenge. The next question from Christian is also for Roberto. So Roberto, on renewables, you have said in the past that the company should focus where it has competitive advantage, like in a deep and ultra deep water. Given what you have seen and learned so far as a company about renewables, how long do you envision it might take for the company to feel more comfortable spending more on this front, to be able to say that it has competitive advantage in renewable fuels? There ROBERTO is no question. There is no exact response to your question, Christian. It depends on many factors, depends on the path of technological innovations, depends on the investment in renewables proving to be very profitable in order to deliver value to our shareholders as those Roberto, Adegi and myself stressed. Our goal is to combine the transition to a low carbon economy with generating value to shareholders. If renewables will satisfy this criteria, why not go ahead? But at the moment, we do not see this. We think that we have to go ahead to our research and development products in order to give you a response to that. We now have questions from Gabriel Franciscu with XP. And the first question is for Gujimar. So Gujimar, could you comment on the drivers behind the CapEx reduction for the construction of new wells? More specifically, what are the current levels of CapEx per new well? And whether you expect the trend in CapEx reductions continue going forward? PERERAJO:] Thank you, Gabriel. The main drivers I can summarize that we have three, the simplification in well design, the continuous applications of new technologies during the completion and drilling in the re performance. The second part of your question, the answer is yes. We expect to continue the trend of reducing CapEx in drilling and completion activities. And as I pointed out during my presentation, for the Prusa wells, we have the well efficiency program that aims to optimize the engineering projects of the wells by incorporating more technologies with a focus on reducing costs, and we expect to reduce up to 30% of the costs. The ambition of this program is to reduce the duration of the Buzios wells to up to seventy days. And in the Pozal, we have, as I said during my speech, the two on three drill trace render that is also adopting new design in technologies of drilling and completion in accordance with our reservoir characteristics for the presale fields. Thank you. RAMON Thank you, Benjamin. The second question also from Gabriel. It's regarding company's portfolio of thermal power plants. So Roberto, the thermal power plants are for sale. What was the strategy for the divestments? Will the company pursue with Enel an extension of the authorization of power plants with a short term duration? REPRESENTATIVE:] Will the company sell assets only after the participation in an auction? Well, we are going as Anilise explained, we have several power plants for sale. And we reserved only 10 for ourselves to think about what to do in the next few years. Perhaps we will sell them or we keep them because in spot all of them are natural gas fired. So it's we are low carbon we generate low carbon energy and decide about the future of these plants. At the moment, as the Brazilian market is still in steady stage of development, I would like to stress that Petrobras with its divestment program is creating three new industries in Brazil. First, an oil industry composed by small and medium sized oil companies. Second, a market for refining. We have a real refining market. And fourth, a natural gas market, these were not markets. So only one company was the dominant player. Now there will be more competition. So as I was saying, we are in the very early stage. So it's still a liquid market. Let's wait for some time and see the evolution of the liquidity of this market in order to make a final decision to sell or to keep these thermal plants. REPRESENTATIVE:] [SPEAKER Thank you, Babe. So now we go for the last question. The last question we received is from Fernanda Conia with Citi. So she's mentioned that throughout the presentation, several productivity and efficient initiatives were mentioned. However, I want to understand what is the main driver behind the sharp drop in $6,700,000,000 CapEx in exploratory assets? Or is it a matter of lower depletion rates that we originally forecast in pre salt regions? Capo, would you like to start? Thank you for your question. Well, it has nothing to do with the client rates of the exploratory blocks or even loss of potential of those blocks. The reduction on the exploratory investments was just an adjustment over time, postponement of exploration in some blocks that we have made. And we are still keeping the commitments with A and P for those exploratory blocks, and we still see potential on them. But we have to adjust our CapEx profile to cope with cash generation for the 2021, 2025 considering that this cash generation will be lower due to the fact that the prices the petroleum price would also be lower. Our expectation is that. So it was an adjustment ALVAREZ to cope with lower prices and to cope with less cash generation, just that. And Capo, I can say also that it's true that the cost today for drilling exploratory wells is getting lower, and then we are having more opportunity to capture from exploration, just to add what you have said, Alcap. DE Thank you, Capo. Thank you, Guzman. So at this time, the Q and A session is over. So if you have any further questions, you can send us to our Investor Relations team. Roberto, you can now make your final PIMENTEL remarks. So please, Roberto. Thank you, Carla. It's worth mentioning that this year, we are the Petrobras Day is also celebrating the twentieth anniversary of Petrobras listing on the NYSE. So it was really important event for the history of the company. And now Petrobras has a linkage stock, although being a state owned company, we have private shareholders owning 45.9% of our voting shares and owning also 64 of our total capital. So we need liquidity and there is a very liquid market for Petrobras at the AYAC. We are very happy with the listing. It was a very good initiative in the past. And finally, I would like to thank you for attending our event. That's according to our view is the most important event of Petrobras with Investor Relations during the year. And we are very happy with your participation in the analyst questions that were addressed to us. Thank you. Please stay healthy and safe. Bye. Take care.

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