Petrobras (PBR)

Overhead (US$ millions)

In comparison to January through September 2004, corporate overhead rose 61% due to higher expenses for contracted services, mainly those linked to data processing, safety, environment and health, expenses related to sponsorships, publicity and institutional propaganda, expenses connected to maintenance and infrastructure of the administrative buildings, the increased expenses for salaries and benefits approved in the 2004/2005 Collective Bargaining Agreement, and revision of the actuarial calculation linked to the health and pension plans. Discounting the effects of the 16% appreciation of the real, with all the expenses in this area in reais, overhead increased 38% in relation to January through September 2004.

In comparison to 2Q-2005, corporate overhead in 3Q-2005 increased 19%, due mainly to higher expenses with services contracted for publicity and advertising, sponsorships, health, safety and the environment, and consulting in the area of data processing. Discounting the effects of the 6% appreciation of the real, with all the expenses in this area in reais, overhead increased 12% in relation to 2Q-2005.

Overhead (US$ million)

In comparison to 1H-2004, corporate overhead in 1H-2005 grew 56%, due to higher expenses with contracted services, mainly linked to data processing, health, safety and environment, sponsorship, institutional advertising and publicity, expenses for property rental, and the increased expenses for salaries and benefits approved in the 2004/2005 Collective Bargaining Agreement, and revision of the actuarial calculation linked to the health and pension plans. Discounting the effects of the 13% appreciation of the real, and considering that all expenses are in reais, overhead increased 34% over 1H-2004.

Corporate overhead in 2Q-2005 rose 7% over 1Q-2005, mainly because of the appreciation of the real against the U.S. dollar (7%) on expenses in Brazilian currency.

Overhead (US$ million)

In comparison to 1H-2004, corporate overhead in 1H-2005 grew 56%, due to higher expenses with contracted services, mainly linked to data processing, health, safety and environment, sponsorship, institutional advertising and publicity, expenses for property rental, and the increased expenses for salaries and benefits approved in the 2004/2005 Collective Bargaining Agreement, and revision of the actuarial calculation linked to the health and pension plans. Discounting the effects of the 13% appreciation of the real, and considering that all expenses are in reais, overhead increased 34% over 1H-2004.

The sales volume of oil products remained stable in the domestic market in 1H-2005 in relation to 1H-2004, highlighting the increased sales of gasoline and diesel, which were offset by reduced sales of naphtha and fuel oil. Retraction of fuel oil consumption in 1H-2005 compared to 1H-2004 was due to strong competition from substitute products such as coal, coke, biomass and wood.

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Overhead (US$ million)

In comparison to 1Q-2004, corporate overhead in 1Q-2005 increased 55% because of: higher expenses with contracted services, mainly those linked to safety, the environment and health, institutional publicity and advertising, increased expenses for salaries and benefits of worldwide and marine personnel, the ingress of new employees, salary adjustments, the increment in recognition and merit compensation programs, and the actuarial revisions of personnel pension and health plans.

Corporate overhead in 1Q-2005 increased 6% over 4Q-2004, due mainly to personnel expenses related to the salary adjustments and actuarial revision of the health and pension plans at the end of 2004.

Overhead (US$ million)

Corporate overhead in 4Q04 rose 26% compared to 3Q04, largely due to higher expenses for contracted services related to advertising, institutional propaganda and other agreements related to institutional projects.

In comparison to fiscal year 2003, corporate overhead in fiscal year 2004 rose 35%, due to higher personnel expenses from the concession of a salary adjustment in the collective bargaining agreements of September 2003 and 2004, and to the revision in the actuarial calculation of the health benefits for retirees and pensioners, plus higher expenses for advertising, institutional publicity and cultural sponsorships.

Overhead (US$ million)

Corporate overhead in 4Q04 rose 26% compared to 3Q04, largely due to higher expenses for contracted services related to advertising, institutional propaganda and other agreements related to institutional projects.

In comparison to fiscal year 2003, corporate overhead in fiscal year 2004 rose 35%, due to higher personnel expenses from the concession of a salary adjustment in the collective bargaining agreements of September 2003 and 2004, and to the revision in the actuarial calculation of the health benefits for retirees and pensioners, plus higher expenses for advertising, institutional publicity and cultural sponsorships.