webcast 1q15

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RESULTS ANNOUNCEMENT1st Quarter 2015__

Conference Call / WebcastMay, 18th 2015

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DISCLAIMER

FORWARD-LOOKING STATEMENTS:

DISCLAIMER

The presentation may contain forward-looking statements about futureevents within the meaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, asamended, that are not based on historical facts and are not assurances offuture results. Such forward-looking statements merely reflect theCompany’s current views and estimates of future economic circumstances,industry conditions, company performance and financial results. Suchterms as "anticipate", "believe", "expect", "forecast", "intend", "plan","project", "seek", "should", along with similar or analogous expressions, areused to identify such forward-looking statements. Readers are cautionedthat these statements are only projections and may differ materially fromactual future results or events. Readers are referred to the documents filedby the Company with the SEC, specifically the Company’s most recentAnnual Report on Form 20-F, which identify important risk factors thatcould cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to generaleconomic and business conditions, including crude oil and othercommodity prices, refining margins and prevailing exchange rates,uncertainties inherent in making estimates of our oil and gas reservesincluding recently discovered oil and gas reserves, international andBrazilian political, economic and social developments, receipt ofgovernmental approvals and licenses and our ability to obtain financing.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or futureevents or for any other reason. Figures for 2015 on are estimates ortargets.

All forward-looking statements are expressly qualified in their entiretyby this cautionary statement, and you should not place reliance on anyforward-looking statement contained in this presentation.

NON-SEC COMPLIANT OIL AND GAS RESERVES:

CAUTIONARY STATEMENT FOR US INVESTORS

We present certain data in this presentation, such as oil and gasresources, that we are not permitted to present in documents filed withthe United States Securities and Exchange Commission (SEC) undernew Subpart 1200 to Regulation S-K because such terms do notqualify as proved, probable or possible reserves under Rule 4-10(a) ofRegulation S-X.

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1Q15 Net Result: R$ 5.3 billion

� Lower unit import cost� Lower government take

� Provision of Voluntary Separation Incentive Program – PIDV (R$ 2.4 billion) in the 1Q14

� Reversal of provision for losses in the electricity sector (R$ 1.3 billion)

� BRL devaluation� Higher debt� Lower capitalized interest

� Lower oil products sales� Lower oil prices

R$ Billion 1Q15 1Q14 ∆%Sales Revenues 74.4 81.5 -9

Cost of Sales -51.9 -62.4 -17

Gross Profit 22.4 19.2 17

Operational Expenses -9.1 -11.6 -22

Net income before financial results and others 13.3 7.6 76

Financial Results -5.6 -0.2 2,700

Share of earning in equity-accounted investments 0.2 0.5 -67

Profit-sharing -0.3 -0.3 0

Net income before income taxes 7.6 7.6 0

Income Taxes -3.0 -1.8 68

Non-controlling interest 0.8 -0.4 -304

Net Income 5.3 5.4 -1

Adjusted EBITDA 21.5 14.3 50

Investments 17.8 20.6 -13

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Exchange Rate and Oil Prices

Average Exchange Rate(R$/US$)

End of Period FX

2.26 2.66 3.21

1Q14

2.37

+21%

1Q15

2.87

4Q14

2.54

Average Oil Prices – Brent (US$/bbl)

BrentR$/bbl

256 194 155

54

76

108

1Q15

-50%

4Q141Q14

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1Q15 Highlights

Operational

Financial

R$ Billion 1Q14 1Q15 ∆%

Gross Profit 19.2 22.4 17

Gross Margin 23% 30% 7 p.p.

Adjusted EBITDA 14.3 21.5 50

EBITDA Margin 18% 29% 11 p.p.

� Total oil and natural gas production of 2.8 million boed, 11% higher than1Q14.

� Monthly record of oil production in Pre-Salt of 672 thousand bpd in March. InApril, new monthly record of 715 thousand bpd.

� Operation start-up:

� Extended Well Test in Búzios;

� P-61 (Papa-Terra);

� Hadrian South Field (Gulf of Mexico).

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Technological Acknowledgement of Petrobras at OTCSince the 80’s, Petrobras has been innovating in ultra-deep water exploration

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Mount Everest

8,8 km

1st oil field

found in

Campos Basin

OTC

Award

1992

1st FPSO

Production

System

OTC

Award

2001

1st commercial

discovery in

Pre-Salt

OTC

Award

2015

Deepest

flexible riser

water depth

6

8 km

0 km

K2 MOUNTAIN(8.6 km)

Source: iStock/Petrobras images

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Pre-Salt Highlights

* Petrobras and partners production

0

100

200

300

400

500

600

700

800

Average Monthly Production(thousand bpd)*

Monthly Record in April/2015: 715Thousand bpd

February 2013: 300Thousand bpd

2.4 x

800 thousand bpdDaily Production Record

04/11/2015

2008 2009 2010 2011 2012 2013 2014 April

2015

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0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014

Drilling Completion

Pre-Salt Highlights

Lula and Sapinhoá field

Source: Evaluate Energy

* Without government take

54% of time reduction in well drilling and completion

Lifting Cost* in 2014 (US$/boe)

14.97

14.57

9.07

Others

PetrobrasAverage

Pre-Salt

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Exploration and Production

Operating Efficiency in Brazil

90% 91% 92%

400

453 467

106

118

2,803

2,149

100

2015Target

2,796

+10.7%

90

1Q14

2,531

1,922

91

87

4Q14

2,799

2,150Oil and NGL Brazil

Natural Gas Brazil

Oil and NGL Abroad

Natural Gas Abroad

Oil and NGL Brazil Target2,125

1Q15

Oil and Gas Production – Brazil and Abroad (thousand boed)

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1Q15: Oil and Gas Production – Petrobras x Majors (thousand boed)

554881

2,682

1,801

2,803

2,249Oil/NGL

Natural Gas 3,112

1,542

1,570

3,293

2,074

1,219

4,248

2,277

1,971

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30 34

61

14

1217

26

8

47

1Q152014

22

87

2013 Apr-Dec/15

51

2012

42

Producers

Injectors

Connection of New Wells in Brazil

PLSVs 12 11 19 16

Productivity(Km/PLSV)

94 90 97 91

69

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Oil Products Sales in Brazil

% of Imports 17 17 15

Sales Volume in Brazil(thousand bpd)

947 907

601644

573

823833

750

-5.9%

Diesel

Gasoline

Others

1Q15

2,230

4Q14

2,487

1,010

1Q14

2,371

Decrease due to:

� lower economic activity;

� increase of percentage of ethanol in gasoline and biodiesel in diesel;.

� increase in ethanol sales.

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Oil Products Output

UTILIZATION FACTOR 96% 98% 86%

Yield(Diesel, Gasoline and Jet Fuel)

66% 67% 67%

Oil Products Output in Brazil (thousand bpd)

822 867 796

483 490423

290 281264

208 219

177

130128125

105

-8%

Gasoline

Diesel

LPG

Naphtha

Jet Fuel

Fuel Oil

Others

1Q15

1.964

74100

4Q14

2.171

82104

1Q14

2.124

92 � Lower production due to scheduled stoppage in RLAM

� RNEST start-up partially offset this decrease.

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Operating Income Evolution 1Q14 x 1Q15

R$ Billion

1Q14Operating

Income

0.1

InternationalActivities

0.016.8

Gas andPower

1.5

Biofuel

-0.4

Corporate

0.0

Distribution

13.3

Elimination

+76%

1Q15Operating

Income

E&P

-11.4

Downstream

-0.8

7.6

1Q15 9.3 4.9 2.1 0.4 0.9 0.0 -4.2 0.0

1Q14 -7.4 16.2 0.6 0.5 0.8 -0.1 -3.4 0.4

∆ 16.8 -11.4 1.5 0.0 0.1 0.0 -0.8 -0.4

Contribution per Segment

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Consolidated Net Income Evolution 1Q14 x 1Q15

R$ Billion

0.1

PIDV

2.4

COGS

10.4

Revenues

-7.2

1Q14Net Income

5.4

Income Taxes

-1.2

FinancialResults

-5.4

OtherExpenses

5.3

1Q15Net Income

Others

0.8

1T15 74.4 -51.9 0.0 -9.1 -5.6 -3.0 0.6

1T14 81.5 -62.4 -2.4 -9.1 -0.2 -1,8 -0.2

∆ -7.2 10.4 2.4 0.1 -5.4 -1.2 0.8

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Costs Evolution

RefiningCost

LiftingCost*

* Excludes government take

+15%

1Q15

38.13

13.27

4Q14

36.12

14.21

1Q14

33.14

14.15

R$/boeUS$/boe

8.16

2.84

4Q14

6.90

2.71

+26%

1Q151Q14

6.48

2.75

� Higher lifting cost due to increase in workovers in 1Q15.

� Higher refining cost due to reductionin throughput in 1Q15.

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General and Administrative Expenses

R$ Billion

General and Administrative Expenses

1Q15

+6%

3.4

4Q14

2.62.7

1Q14

� Increase in line with inflation in theperiod.

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Financial Ratios - Indebtedness

LE

VE

RA

GE

ND

/ EB

ITD

A

1)Net Debt / Annualized Adjusted EBITDA (Adjusted EBITDA = EBITDA excluding earnings of equity-accounted investments and impairments)2)Net Debt / (Net Debt + Shareholders Equity)

4.00 3.94

5.024.77

3.86

39% 40%43%

48%52%

0%

10%

20%

30%

40%

50%

60%

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

1Q14 2Q14 3Q14 4Q14 1Q15

Net debt / EBITDA ¹ Net debt / Net capitalization ²

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Indebtedness

1) Includes government securities and time deposits (maturity longer than 90 days)

Indebtedness

Indebtedness (R$ Billion) 03/31/15 12/31/14

Short-term debt 39.8 31.6

Long-term debt 360.9 319.5

Total Indebtedness 400.7 351.0

(-) Cash and cash equivalents ¹ 68.2 68.9

= Net debt 332.5 282.1

Indebtedness (US$ Billion)

Net debt 103.6 106.2

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2015 Cash Flow

US$ Billion

US$ 60 /bbl (average)

R$ 3.10 /US$ (average)

Oil Prices

Exchange Rate

2013

23

25

26

-21

Interest, Amortizations

and Others

-29

InvestmentsOpeartingCash Flow

2015 Initial Cash Position

2015 Final Cash Position

Funding NeedsRolloversDivestments

2,796 kboedTotal Production

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RESULTS ANNOUNCEMENT1ST Quarter 2015__

Information:

Investor Relations

+55 21 3224-1510

[email protected]