Petrobras (PBR)

The behavior of the various components of consolidated net income is shown below:

• A R$ 1,129 million reduction in gross profit

⁽¹⁾ Expenses from transportation, terminals and pipelines.

The behavior of the various components of consolidated net income is shown below:

• A R$ 2,012 million reduction in gross profit:

⁽¹⁾ Operating income before the financial result, equity income and taxes.
⁽²⁾ Expenses from transportation, terminals and pipelines.

The behavior of the various components of consolidated net income is shown below:

• A R$ 504 million reduction in gross profit:

⁽¹⁾ Operating income before the financial result, equity income and taxes.
⁽²⁾ Expenses from transportation, terminals and pipelines.

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PETROBRAS SYSTEM		Financial Performance

• An R$ 892 million increase in operating expenses, notably:

• Exploration costs (R$ 326 million), due to the increase in the write-off of dry and economically unviable wells in Brazil (R$ 195 million) and abroad (R$ 76 million), in turn caused by the intensification of the Company’s investment program;
  
  
• Selling expenses (R$ 306 million), due to higher exports and trading, which pushed up ship chartering, higher personnel expenses and the devaluation of the Real, offset by the reduction in provisions for doubtful debts;
  
  
• General and administrative expenses (R$ 200 million), due to the rise in personnel costs as a result of the increase in the workforce and pay rises in Brazil (R$ 82 million), the inclusion of expenses from the NSS refinery in Japan (R$ 18 million) and the negative exchange variation (R$ 59 million);
  
  
• Other operating expenses (R$ 126 million), due to the booking in 2009 of provisions for the devaluation of inventories (R$ 244 million), caused by the decline in commodity prices, offset by lower expenses from institutional relations and cultural projects (R$ 88 million) and unscheduled stoppages of production facilities and equipment (R$ 65 million).

• The reduced financial result (R$ 613 million), due to higher exchange losses on funds invested abroad , as shown below:

• The decline in equity income (R$ 391 million), due to the constitution of provisions for losses from the investments in the USA (R$ 341 million), due to the difference between the estimated fair value of the net assets and that defined by the arbitration panel relative to the acquisition of the remaining 50% interest in the Pasadena refinery.

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PETROBRAS SYSTEM		Financial Performance