Petrobras (PBR)

The equity market value of the Company on June 30, 2006 totaled R$ 202,635 million, an appreciation of 17% in relation to December 31, 2005.

• Consolidated operating net revenue totaled R$ 37,948 million during 2Q-2006, a 17% increase over 2Q-2005.
  
  
• 2Q-2006 consolidated net income totaled R$ 6,959 million, 41% higher than 2Q-2005, mainly due to higher realization prices for the company’s oil products in its internal and external markets, following similar price increases in international markets.
  
  
• Total production of oil, NGL, and natural gas in 2Q- 2006 averaged 2,273 thousand barrels of oil equivalent per day, similar to the levels of 2Q-2005. Production from the P-43 (Barracuda) and P-48 (Caratinga) platforms, whose production stabilized at full capacity in June 2005, as well as the production from P-50 (Albacora Leste) and FPSO-Capixaba (Golfinho) platforms which began producing in 2Q-2006, were offset by scheduled maintenance stoppages in several production systems during June of 2006.
  
  
• Oil and NGL production in Brazil averaged 1,757 thousand barrels/day, 76% of which was produced from Bacia de Campos (1,441 thousand barrels/day).

• As a result of a higher capacity utilization factor, production of refined products in Brazil averaged 1,795 thousand barrels/day during 2Q-2006, an increase of 8% when compared with 2Q-2005.
  
  
• Petrobras’ net debt as of June 30, 2006 was R$ 20,808 million, 3% lower than net debt as of March 31, 2006, (R$ 21,523 million) reflecting payments of scheduled amortizations. Net Debt/EBITDA ratio was 0.38 (unchanged from 1Q - 2006).
  
  
• In the 1H-2006, the Petrobras System invested R$ 13,644 million (24% higher than in the same period of the prior year), of which R$ 7,195 million was invested in developing oil and gas reserves in Brazil.
  
  
• Value-added by the Petrobras System in the 1H-2006 reached R$ 64,605 million, an increase of 18% over the 1H-2005, of which R$ 36,819 million (57%) is destined for government participation and other federal, state and municipal taxes, R$ 8,332 million to suppliers and financial institutions for financial charges, rent and charters, R$ 14,586 million to shareholders, and R$ 4,868 million to salaries, bonuses and benefits.