Petrobras' Condensed Report for 3Q, 2014
Petrobras clarifies that it has been decided not to publish the financial statements for the third quarter of 2014 not reviewed by the independent auditors in view of the new incidents, after the day November 13, 2014, relating, directly or indirectly, with Operation Lava Jato, namely:
i) Lower the January 2015 expiration of the first 31 covenants, allowing the presentation of the financial statements for the third quarter of 2014 will not revised until that date without the risk of declaration of acceleration of debt by creditors;
ii) The summons (subpoena) received by Petrobras, the November 21, 2014 of Securities and Exchange Commission (SEC) requesting documents relating to an investigation into the Company initiated by SEC;
iii) Knowledge by Petrobras, the December 3, 2014, the statements given in the context of the collaboration agreement awarded Mr. Julio Gerin de Almeida Camargo (Toyo Group) and Mr. Augusto Ribeiro de Mendonça Neto (Setal Group);
iv) Citation Petrobras, the December 9, 2014, relating to collective action (class action) filed by Mr. Peter Kaltman court in the US (United States District Court, Southern District of New York). We believe that other actions possibly be consolidated with the action of Mr. Kaltman be submitted;
v) Filing by the Federal Public Ministry, the December 11, 2014, criminal proceedings against various people, including the former director Paulo Roberto Costa Petrobras and other business managers for passive corruption, bribery, organization criminal, money laundering and use of false documents.
However, given the duty to report and act with diligence and transparency, the Company is disclosing information relating to operational indicators and some economic-financial information that we believe are not affected by the possible adjustments arising from the "Operation Lava Jato ". These statements have not been reviewed by our independent auditors.
In Q3 2014 Sales Revenue totaled R $ 88.378 million and cash and cash equivalents, R $ 62,409 million.
The 7% increase in revenue from sales, compared to Q2 2014 was due to higher oil exports and increased demand in the domestic market, mainly diesel, supported by most of the national production of derivatives . In relation to the period of Jan-Sep / 2013 Revenues Sales were higher by 13%, reflecting higher prices for sales of products in the domestic market due to the incidence throughout the year 2014 adjustments diesel and gasoline during 2013, and the effect of exchange rate depreciation (8%) on the prices of derivatives linked to the international market and exports, higher prices for energy and natural gas; as well as increased demand for products in the domestic market (3%), mainly diesel (2%), gasoline (5%) and fuel oil (21%) and the largest volume of oil exported (12%) partially offset by lower exports of fuel oil (14%).
The Executive Board has recently approved the implementation of a series of actions aimed at preserving cash, which in September 30, 2014 was R $ 62.4 billion, and liquidity in the operations of the Company, including For example, the anticipation of receivables (creditors' rights), reducing the rate of investment in projects, reviewing product pricing strategies and operating cost reduction activities not achieved by structuring programs. These actions ensure positive free cash flow in the next year, assuming oil prices around US $ 70 / bbl and exchange rate around R $ 2.60 / US $, and eliminate the need for deposits on the market next year.