1. Results Announcement
2nd Quarter 2011
(IFRS)
Conference Call/Webcast
Almir Guilherme Barbassa
CFO and Investor Relations Officer
August 17th, 2011
1

2. DISCLAIMER
FORWARD-LOOKING STATEMENTS:
DISCLAIMER
The presentation may contain forward-looking statements We undertake no obligation to publicly update or
about future events within the meaning of Section 27A of revise any forward-looking statements, whether as
the Securities Act of 1933, as amended, and Section 21E a result of new information or future events or for
of the Securities Exchange Act of 1934, as amended, that any other reason. Figures for 2011 on are
are not based on historical facts and are not assurances of estimates or targets.
future results. Such forward-looking statements merely
reflect the Company’s current views and estimates of
future economic circumstances, industry conditions, All forward-looking statements are expressly
company performance and financial results. Such terms qualified in their entirety by this cautionary
as "anticipate", "believe", "expect", "forecast", "intend", statement, and you should not place reliance on
"plan", "project", "seek", "should", along with similar or any forward-looking statement contained in this
analogous expressions, are used to identify such forward- presentation.
looking statements. Readers are cautioned that these
statements are only projections and may differ materially
from actual future results or events. Readers are referred NON-SEC COMPLIANT OIL AND GAS RESERVES:
to the documents filed by the Company with the SEC,
CAUTIONARY STATEMENT FOR US INVESTORS
specifically the Company’s most recent Annual Report on
Form 20-F, which identify important risk factors that could We present certain data in this presentation, such
cause actual results to differ from those contained in the as oil and gas resources, that we are not permitted
forward-looking statements, including, among other to present in documents filed with the United
things, risks relating to general economic and business States Securities and Exchange Commission (SEC)
conditions, including crude oil and other commodity under new Subpart 1200 to Regulation S-K because
prices, refining margins and prevailing exchange rates, such terms do not qualify as proved, probable or
uncertainties inherent in making estimates of our oil and possible reserves under Rule 4-10(a) of Regulation
gas reserves including recently discovered oil and gas S-X.
reserves, international and Brazilian political, economic
and social developments, receipt of governmental
approvals and licenses and our ability to obtain financing.
2

3. 2Q11 HIGHLIGHTS
o Net income totaled R$ 10.9 billion in 2Q11, in line with the 1Q11. In 2Q11, it went up 32%
when compared with the same period last year.
o Second‐quarter domestic sales volume increased by 7% and 9% over 1Q11 and 2Q10,
respectively. In the first half, sales moved up 8% Y‐O‐Y.
o Lula Pilot underlined the high productivity of the pre‐salt discoveries: output from the
corresponding well averaged 36,322 boed in May.
o Three new extended well tests (EWTs) were implemented: Lula Northeast (Santos Basin),
Aruanã and Brava (Campos Basin).
o Upgrade of Petrobras’ foreign currency rating from Baa1 to A3 (Moody’s). The upgrade also
applied to debt of subsidiaries guaranteed by Petrobras.
Lula Pilot
Aruanã EWT Lula NE EWT
3

4. MAIN INDICATORS
∆%
2Q11 1Q11 (2Q11 x 2Q10
1Q11)
EBITDA (R$/million) 16.139 16.093 ‐ 15.927
OPERATING INCOME¹ (R$/million) 12.047 12.536 ‐4% 12.303
NET INCOME² (R$/million) 10.942 10.985 ‐ 8.295
AVG. REALIZATION PRICE ‐ ARP (R$/bbl) 167,15 163,72 +2% 158,72
AVG. REALIZATION PRICE ‐ ARP (US$/bbl) 104,54 98,31 +6% 88,46
Brent (US$/bbl) 117,36 104,97 +12% 78,30
Average dollar sell price (R$) 1,60 1,67 ‐4% 1,79
Production (thousand bbl/day) 2.598 2.627 ‐1% 2.587
Domestic sales (thousand bbl/day) 2.498 2.344 +7% 2.283
¹ Income before financial result, profit sharing and taxes
² Net income attributable to Petrobras shareholders
4

5. OIL AND GAS PRODUCTION – 1H11 vs. 1H10
Expectations of accelerated output in the second half
Total Production Domestic Production
(daily average) (daily average)
+2% +2%
2,568 2,613 2,379
2,322
246 ‐5% 234 +7%
324 348
(thousand bpd)
(thousand bpd)
2,322 +2% 2,379 +2%
1,998 2,031
1H10 1H11 1H10 1H11
Brazil International Oil Natural Gas
o 1H11 output influenced by scheduled maintenance.
o Higher production in 2H11, with start‐up of P‐56 (Marlim Sul), 100 thousand bpd of capacity, and
additional production from P‐57.
o International production declined due to the initial collection of tax oil in Nigeria (Agbami field)
and the termination of the E&P agreements in Ecuador.
5

6. PRODUCTION
Historically, Petrobras’ production has grown through expanding to new frontiers
Thousand bpd
rs
yea
30
st
e la
th
in
p .y.
1 0%
Deep and ultra‐deep Pre‐salt
Onshore Shallow water Deep water
water
6

7. SANTOS BASIN PRE‐SALT UPDATE
Accelerated drilling campaign
High exploration success ratio (all
wells have found oil occurrences)
High productivity in producing wells
LULA NE EWT
‘
LULA
PILOT
30 wells drilled up to July 2011
30 wells drilled up to July 2011
(26 exploratory)
(26 exploratory)
Up to 15 wells scheduled for
Up to 15 wells scheduled for
drilling in 2011
drilling in 2011
9 rigs in operation (July 2011)
9 rigs in operation (July 2011)
and another 5 scheduled for
and another 5 scheduled for
start‐up by year‐end
start‐up by year‐end
Wells undergoing drilling, completion or appraisal 7
7

8. DEVELOPMENT OF PRE‐SALT
All first‐phase units under construction or being contracted
Already contracted (start‐up in Already contracted (start‐up in
3 FPSOs in operation 2012 and 2013) 2014)
Phase 0 Phase 1a Phase 1b
Acquisition of information Production > 1 MM bbl in 2017 Significant production increase
2008/2013 2013/2017 After 2017
• Appraisal wells • Guará Pilot • Accelerated innovation
• Extended well tests • Lula NE Pilot • Intensive use of new
• Lula Pilot • Guará N technologies specifically
developed for pre‐salt
• Cernambi S conditions
• 8 definitive production
systems (replicant)
• 4 production units in the
Transfer of Rights area
In operation (only 4 Being contracted (conversion
years after discovery) in the Inhaúma shipyard)
Under construction (hulls being built
in the Rio Grande shipyard)
8

9. LOCAL CONTENT
Flexibility in concession agreements
Minimum and maximum limits by block:
Round 0 No local content required Rounds 7, In deep water, between 37% and 55% in the
9 and 10 exploration phase, and between 55% and 65% in
the production development phase.
Maximum limit
Rounds 1 Minimum exploration limit: 37%
50% in the exploratory phase Transfer of Minimum production development limit:
to 4 70% in the production development phase Rights • Up to 2016: 55%
Concession • 2017‐2018: 58%
Minimum limit by block • After 2019: 65%
Rounds 5
Between 30% and 70% in the exploration and
and 6 production development phases
2011‐2015 Projects
2011 2012 2013 2014 2015
Marlim Sul Guará Piloto 2 Lula NE Guará (Norte) Lula 3 Central
SS P-56 FPSO Cid. São Paulo FPSO Cid. de Paraty FPSO FPSO
Baleia Azul Parque das Baleias Cernambi Lula 4 Alto
FPSO FPSO P-58 FPSO FPSO
Papa-Terra BALEIA AZUL ESP/MARIMBÁ
Roncador
P-61 &FPSO P-63 FPSO FPSO
SS P-55
Roncador SIRI Maromba
Tiro/Sidon 2 jacket and FPSO
FPSO P-62 FPSO
FPSO
Aruana Franco 1
FPSO P-62 FPSO
Lower local content requirements in the ANP’s initial concession rounds give local industry time to adapt.
Concession and Transfer of Rights agreements envisage withdrawal clauses due to non‐compatible responses
(price, deadline and technology) from the local market in comparison with international parameters.
9

10. DEVELOPMENT OF NATIONAL INDUSTRY
Detailing of needs into critical categories permits long‐term strategy
NATIONAL MARKET
CATEGORY FPSO cost
AVAILABILITY
1 Process equipment ▲▲
2 Turbomachinery ▲▲▲
3 Mechanical equipment ▲
4 Electrical equipment ▲▲
5 Instrumentation/automation ▲
6 Ship structure and systems ▲▲▲
7 Pipeline and valves ▲
8 Security
9 Telecommunications
10 Ventilation and AC (VAC)
▲
11 Engineering services
12 Architecture
13 Commissioning services
▲Proportional
share of FPSO cost
Extensive experience of contracting FPSOs combined with operational scale and equipment standardization
will help create an internationally competitive offshore industry.
10

11. AVERAGE REALIZATION PRICE (ARP)
Volatile international prices
US$/bbl US$/bbl Average Average Average
2Q10 1Q11 2Q11
180
120
117
160
105
100 109 140 122,62
108,84
86
78 94 120
80 75 76 77
68 80 100 88,46
104,54
59 73 74 72 98,31
60 70 80
64 85,55
60
40
49
40
20 20
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
US ARP Petrobras ARP
Petrobras (average) Brent
o Downward trajectory of U.S. ARP at the end of 2Q11 due to greater uncertainties in
relation to global oil demand.
o Reduction of the spread between Petrobras oil price and Brent price (2Q11:US$8.39/bbl;
1Q11:US$ 10.93/bbl).
11

12. LIFTING COST
Costs pressured by higher oil prices
R$/barrel 187.78 US$/barrel
117.36
175.30
104.97
147.02
140.16 86.48 35.00
134.51 55.14
78.30 76.86 30.48
50.66
43.91 42.72 43.47 25.58
24.50 24.67
34.21 21.88
31.66 19.10
26.37 24.26 26.13 14.07 15.29
14.71
10.6 11.38 13.12
17.54 18.46 17.34 19.00 20.93 9.79 10.29
2Q10 3Q10 4Q10 1Q11 2Q11
2Q10 3Q10 4Q10 1Q11 2Q11
BrentGovernment Lifting cost
2Q11 vs. 1Q11: Take
o Higher expenses due to well interventions and preventive maintenance contributed to the upturn.
o Increase in government take reflects higher oil reference price.
12

13. PRODUCTION AND SALE OF OIL PRODUCTS
Adaptation of refining facilities to supply domestic market needs
Production Sales
+9 %
2,043
+5 % 1,873 1,874
1,786
(thousand barrels/day)
423 568
426 528
233 83
250 102
460
343 392 392
767 826 852 932
1H10 1H11 1H10 1H11
Diesel+Jet Fuel Gasoline Fuel Oil Other
o Operational improvements:
o Installed capacity use of 92%, with domestic oil accounting for 81%.
o Higher output of middle distillates and gasoline, with lower production of fuel oil.
13

14. NATURAL GAS
Growing demand met by increased domestic supply
Sales Supply
+9 % +12%
47 59
43 53 1
2
8
Million m3/d
7 26
Million m3/d
25
36 39
32
26
1H10 1H11 1H10 1H11
Local Imported Bolivian Imported GNL
Non‐Thermal Thermal
o Continuous increase in non‐thermal consumption due to greater industrial demand.
o Expectations of reduced thermal demand in 2H11 due to high water levels in hydropower plant
reservoirs.
* Sales do not consider internal transference (Refining, Fertilizers Plants and own TPPs ) neither BR sales 14

15. OPERATING INCOME 2Q11 vs. 1Q11 (CONSOLIDATED)
Higher import volume and prices affected operating income
(R$ million)
6,669 (6,630)
12,536 (375) (153) 12,047
1Q11 Sales Revenue COGS Expenses Other Expenses 2Q11
Operating Income Operating Income
o Domestic sales volume climbed by 7% while exports grew by 8%.
o Higher imports of oil and oil products to supply domestic demand.
o Increased exploratory and drilling expenses (2Q11/1Q11: +R$257 million) and higher provisions for the adjustment of
inventories to market value (2Q11/1Q11: +R$119 million).
15

16. NET INCOME 2Q11 vs. 1Q11 (CONSOLIDATED)
Stable net income in the quarter
(R$ Million)
873 ‐111 ‐57 ‐259 10,942
10,985 ‐489
1Q11 Operating Income Financial Result Interest in Taxes Minority Interest 2Q11
Net Income Investments Net Income
o Increase in the financial result (2Q11: +R$2.9bn) due to the appreciation of the Real (2Q11/1Q11: +4%) and financial
investments (cash and cash equivalents adjusted*1Q11: R$62.9bn vs. 2Q11: R$59.5bn).
o Minority interest from the positive exchange variation on the debt of the SPEs.
* Including cash and cash equivalents plus tradeable securities (maturing in more than 90 days)
16

17. EXPLORATION AND PRODUCTION: OPERATING INCOME 2Q11 vs. 1Q11
Increase in operating income due to higher international oil prices
(R$ million)
3,107 ‐857
‐65 28 ‐338 16,017
14,142
1Q11 Price Effect on Cost Effect on COGS Volume Effect on Volume Effect on Operat. Expenses 2Q11
Operating Income Revenue Revenues COGS Operating Income
o Higher domestic and export sales prices (1Q11: US$94.04 / 2Q11: US$108.97), pushed by the upturn in
heavy crude prices.
o Increased in lifting cost and higher government take, in line with international prices.
o Higher exploratory and drilling expenses (2Q11/1Q11: + R$ 178 mi).
17

18. DOWNSTREAM: OPERATING INCOME 2Q11 vs 1Q11
Higher costs impacted the operating income
(R$ million)
1Q11 Price Effect Cost Effect Volume Effect Volume Effect Operat. 2Q11
Operat. on Revenues on COGS on Revenues on COGS Expenses Operat.
Income Income
o Higher oil and oil product export prices and higher prices of products sold in the local market whose prices are
linked to international prices in the short term.
o Cost increase outpaces revenue upturn, reflecting higher oil, diesel and gasoline import volumes and prices.
o Increase in refining costs due to higher expenses from scheduled stoppages and materials.
18

19. GAS & POWER, INTERNATIONAL and DISTRIBUTION (2Q11 vs. 1Q11)
(R$ Million)
2Q11 VS. 1Q11
Gas & Power
Operating Income: R$ 1,131 R$ 745
o Higher industrial demand supplied by increased gas output in Brazil
o Higher margins of energy sales, due to thermoelectric generation to export,
non occurred in 1Q11
International 2Q11 VS. 1Q11
Operating Income: R$ 649 R$ 903
o Reduced output from the Agbami field in Nigeria due to the lower production
quota allocated to Petrobras
2Q11 VS. 1Q11
Distribution Operating Income: R$ 336 R$ 559
o Increase of 6% sales volumes in line with the seasonal upturn in demand with
narrower sales margins
19

20. INVESTMENTS
1H10 investments influenced by the completion of major projects
1H2010 1H2011
0,8 0,3 0,7 0,2 0,4 0,6
E&P*
2,5 1,9
RTM* 1,8
3,8
Gas&Power*
16,0 International 14,8
Biofuels 12,3
14,0 Distribution*
Corporate
o Around 40% of our investments are pegged to the U.S. dollar. Given the appreciation of the Real
against the Dollar (10%), the Company spends less Reais on a given investments in Dollars.
o Reduction in 2011 investment guidance from R$93.7 billion to R$84.7 billion
*Includes projects developed by SPCs 20

21. LEVERAGE AND LIQUIDITY
Solid balance sheet with high liquidity
Net Debt/EBITDA Net Debt/Net Cap.
5,5
35% 40%
4,5
3,5 16% 17% 17% 17%
20%
2,5
1.55 1.03 1.07
1,5 0.96 1.03 0%
0,5
‐0,5 ‐20%
2Q10 3Q10 4Q10 1Q11 2Q11
o Stable leverage, with maintenance of
high cash position.
o Upgrade of Petrobras’ foreign‐currency
risk rating from Baa1 to A3 (Moody's).
21

22. Information:
Investor Relations
+55 21 3224-1510
petroinvest@petrobras.com.br
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