• Net loss of R$34.8 billion in 2015, caused by the following:

• Impairment of assets and investments, mainly due to the decline in oil prices and an increase in the company’s discount rates (R$49.7 billion); and

• Exchange rate losses and interest expenses (R$32.9 billion).

• Operating loss of R$12.4 billion, down 42% from 2014.

• Adjusted EBITDA of R$73.9 billion, up 25% from 2014, due to higher prices of diesel and gasoline, and a reduction in spending on royalties and imports of oil and oil products.

• Positive free cash flow of R$15.6 billion, compared with negative cash flow of R$19.6 billion in 2014, enabling a 5% reduction in net debt in US dollar terms. This was the first year of positive free cash flow since 2007.

• Investment amounted to R$76.3 billion, down 12% from 2014. In US dollars, investment totaled US$23.1 billion, down 38%. The Exploration and Production segment accounted for 83% of investment.

• The fall in Brent crude prices had a negative impact on the company’s results, due to recognition of impairment losses. The devaluation of the Brazilian real also had a negative impact on the company’s financial results.

Operational highlights

• Annual growth of 4% in oil and natural gas production (in Brazil and abroad), reaching an average of 2.787 million barrels of oil equivalent per day (boed). Oil production in Brazil – 2.128 million barrels per day (bpd) – exceeded the Business and Management Plan’s target. In the pre-salt layer, production operated by Petrobras has remained above 1 million boed since July 2015.

• 55% increase in oil exports between 2014 and 2015, thereby improving Petrobras’ contribution to Brazil’s balance of trade, achieving a surplus in the fourth quarter of 2015 (+167,000 bpd).

• In refining, diesel’s share of total output of oil products rose, as did domestically produced oil’s share of total processed crude. Total output of oil products (in Brazil and abroad) was 2.175 million bpd, down 7% from 2014, mainly due to maintenance shutdowns at the RLAM and REDUC refineries.

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