Petrobras once again achieved solid quarterly results. According to Chief Financial and Investor Relations Officer Rodrigo Araujo Alves, “the results of the second quarter of 2022 show the resilience and solidity of the company, which is capable of generating sustainable results, continuing its history of value creation. In line with our commitment to distribute our profits, we approved shareholder compensation of BRL 6.73 per common and preferred share. Additionally, we paid a total BRL 77.3 billion in taxes and government participation in the second quarter. Over the year, the figure totaled BRL 147 billion, a 92% increase compared to the first half of last year”.
 
Net income in the quarter was US$ 11 billion, mainly reflecting the appreciation of the Brent Crude Oil price in the period. Additionally, the result was positively impacted by the capital gain of US$ 5.2 billion related to the co-participation agreement in Sépia and Atapu. Excluding special items, recurring net income in the quarter was US$ 9.1 billion. These factors also explain the growth in recurring EBITDA to US$ 20.2 billion (+34% vs 1Q22) and free cash flow to US$ 12.8 billion (+61% vs 1Q22).
 
The advance our pre-salt oil production, increasing the share of the oil and gas exploration and production (E&P) segment in the company's results, together with portfolio management and efforts to improve efficiency, makes these results more positively exposed to favorable oil price scenarios. The perceived improvement in results, measured by the return on capital, is in line with the risks involved in this business segment (E&P) and brings Petrobras' profitability - historically lower - closer to the average of its peers.
 
Contributions to Society
 
Petrobras' activities generated significant returns for Brazilian society through dividends and the payment of taxes. In the first half of 2022 alone, Petrobras has already paid BRL 179 billion to the public coffers, with BRL 147 billion in taxes and government participation and around BRL 32 billion* in dividends to the Federal Government (paid until July). Therefore, the payments of dividends and taxes to the public administration, when added together, exceed the value of the profit reported in the period.
 
With the approval of a new installment of dividends announced today (Jul 28), the value of the compensation for its majority shareholder - the Federal Government - will total BRL 64.1 billion* this year.
 
The proposed dividend is in line with the Shareholder Compensation Policy, which provides that, in the event of gross debt of less than US$ 65 billion, Petrobras may distribute to its shareholders 60% of the difference between operating cash flow and fixed asset and intangible (investments) acquisitions. The Policy also provides for the possibility of paying extraordinary dividends, provided that the company's financial sustainability is preserved.
 
In addition to the payment of taxes and dividends, investments of US$ 3.1 billion in the second quarter are also a highlight, 74% higher than in 1Q22, mainly due to the impact of the signature bonus related to the Sépia and Atapu fields. These resources may allow responsible investments that generate greater economic development, as well as jobs and income for Brazilian citizens.
 
* The figure considers all payments made this year to the control group (Federal Government, BNDES and BNDESPar), including the payment made in May, referring to the 2021 results.

Petrobras financial performance can be consulted here.