Petrobras announces its consolidated results for the second quarter of 2015 reviewed by the independent auditors in accordance with international accounting standards (International Financial Reporting Standards - IFRS).

Net income was R$ 5,861 million in the 1H-2015, 43% lower than in the 1H-2014 due to higher net finance expenses and to the recognition of tax expenses with respect to the tax on financial operations (Imposto sobre Operações Financeiras - IOF), partially offset by a higher gross profit (26%), resulting from higher margins in sales of oil products in the domestic market and increased crude oil export volumes driven by a 9% increase in domestic crude oil production, despite the decrease in domestic demand for oil products.

Key events in the 1H-2015:

• Higher domestic crude oil and NGL production (9%, 183 thousand barrels/day);

• Higher crude oil exports volumes (107%, 178 thousand barrels/day);

• Lower domestic demand for oil products (7%, 168 thousand barrels/day);

• Lower import and production taxes costs;

• Reversal of an allowance for impairment of receivables from companies in the northern Brazil isolated electricity system in March 2015 (R$ 1,295 million);

• Higher net finance expense, amounting to R$ 11,669 million, mainly due to foreign exchange variation losses and to higher interest expense, attributable to an increase in the Company’s debt and a decrease in the level of capitalized borrowing costs; and

• Brazilian income taxes on income of companies incorporated abroad (R$ 1,097 million

Key events in the 2Q-2015:

• Lower domestic crude oil and NGL production (2%, 38 thousand barrels/day);

• Higher crude oil exports volumes (44%, 124 thousand barrels/day);

• Domestic oil product production increased (7%, 134 thousand barrels/day) and feedstock processed was higher (6%, 109 thousand barrels/day), maintaining an 86% share of domestic oil used for feedstock processing; 

• The Company received R$ 259 million related to insurance proceeds with respect to an incident in Chinook field (U.S.) in 2011;

• The Company received R$ 157 million related to amounts recovered by the Brazilian Public Prosecutor’s Office in the context of the “Lava Jato” (Car Wash) Investigation;

• The Company recognized tax expenses of R$ 3,931 million (including interest paid and after taxes) with respect to the tax on financial operations (Imposto sobre Operações Financeiras - IOF); and

• Impairment losses of R$ 1,283 million were recognized with respect to Gas & Power, Refining, Transportation and Marketing and Exploration and Production assets, attributable to projects removed from the 2015-19 Business and Management Plan investment portfolio