Petrobras (PBR)

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In the 9M-2009, total oil and gas production in Brazil and abroad climbed by 5% year-on-year, thanks to increased output from the P-52 and P-54 platforms (Roncador), coupled with the startup of P-53 (Marlim Leste), P-51 (Marlim Sul), FPSO – Cidade de Niterói (Marlim Leste) and FPSO – Cidade de São Vicente (Tupi EWT), which more than offset the natural decline in the mature fields.

Year-to-date investments came to R$ 50,680 million, mostly allocated to expanding future oil and gas production capacity. Besides, we highlight the Supply, Gas & Energy, and International segments, where the respective priorities were refinery investments in Brazil, the gas pipeline network in Brazil and the distribution businesses in Chile.

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• Sales (R$ 382 million), due to the increase in contractual charges for storage and movement of products (R$ 263 million), incurred through not using the minimum contracted capacity of the pipes and terminals (ship or pay) and an increase in the expenses with freightage of the ships for exports, under VCP and TCP contracts (R$ 195 million), due to the increase in exports of oil and oil products, mitigated by the decrease in the provision for doubtful accounts for account receivable (R$ 97 million);

• General and administratives expenses (R$ 181 million), due to an increase in expenses with personnel (R$ 127 million), as a result of the increase in the labor force, the 2008/2009 collective bargaining agreement and the process for advances in level and the promotion for 2008. There was also an increase in expenses with third-party services (R$ 97 million), mainly data-processing, compensated by the decrease in travel expenses (R$ 31 million), as a result of the Company’s measures for cost optimization;

• Other Operating Expenses (R$ 131 million), resulting from the increase in expenses with equipment out of operation (R$ 161 million), mainly dock dues for sonar ships that will provide services for offshore fields, and lower revenues from incentives, donations and government subsidies (R$ 82 million), mitigated by lower expenses for institutional relations and cultural projects (R$ 128 million).

Offset by the decrease in the following expenses:

• Research and Development (R$ 85 million), resulting from the lower provisioning of funds for contracting projects tied to entities accredited by ANP, a result of the decrease in oil prices and consequent decrease in gross revenue from Brazilian production fields.

• Negative effect of R$ 3,202 million on the financial results, emphasizing the lower results from monetary and exchange variations (R$ 3,475 million), as a result of the effects of the depreciation of the Real in 2009 on net assets exposed to exchange rates; and

• Increase of R$ 1,486 million in the equity earnings of subsidiaries, mainly due to the better results presented by PNBV, Downstream, Gaspetro, PIB BV and Petroquisa.