Hi, good afternoon, everyone. Welcome to Petrobras Webcast with Analysts and Investors about the Third Quarter Results. It's great to have you join us today. We'd like to inform you that all participants will follow the transmission by Internet as listeners. After an introduction, a Q&A session will begin. You can send us questions by mail at petroinvest@petrobras.com.br. Today, we have with us Claudio Mastella, Chief Trading and Logistics Officer; Fernando Borges, Chief Exploration and Production Officer; Joao Henrique Rittershaussen, Chief Production Development Officer; Paulo Palaia, Chief Digital Transformation and Innovation Officer; Rafael Chaves, Chief Institutional Relations and Sustainability Officer; Rodrigo Araujo, Chief Financial and Investor Relations Officer; Rodrigo Costa, Chief Refining and Natural Gas Officer; and Salvador Dahan, Chief Governance and Compliance Officer. To initiate, I'll pass the floor to Petrobras CFO, Rodrigo Araujo. Please, Rodrigo, go ahead.

Thank you, Carla. Thanks, everyone. Good afternoon and thank you for being with us today and joining our earnings call for the third quarter of 2022. We had a very solid quarter, very important operational and financial results, and I'm very glad to be here with you today to present our results and you go through the Q&A session. So, first of all, starting with our disclaimer for respect to future information and forecast. Next, please. So, starting with safety. As you guys know, safety is a main priority of the company, is a strong value for us, and we're continually focused on improving our safety metrics. And as you can see, our total recordable injuries by per million man-hours has been improved -- improving consistently over time and of course, we're focused on achieving even better levels, both with process improvement and with technology as well. And we're substantially below the acceptable limit. Of course, we do have an ambition of zero fatalities and unfortunately, we had one fatality on Q3 2022, that reminds us that focusing on continually improving safety has to be part of our mission and we're strongly focused on that. Next, please. Starting with our ESG agenda, we look at our emission KPIs and we can see that we've been continually reducing the level of emissions, not only on the upstream segment, but also in downstream segment, both of them below the acceptable limits. And the targets that we set for 2022 in the current business plan, you can see that the emissions that we have in Tupi and Búzios are getting more and more competitive. So, reaching 9.4 and 9.1 kilos of CO2 per barrel of oil equivalent. And of course, those are very competitive fields and support our strategy and our positioning as…

Thank you, Rodrigo. We can now move to our Q&A session. The first question that we received comes from Luiz Carvalho with UBS. And he sent us a message. So before we go to my questions, I would like to congratulate the management and the Board of Directors for the incredible transformation that you all have led Petrobras to over the past couple of years. I have been covering Petrobras for more than 10 years, and you can all be proud because you have built a legacy. Now to the questions. Luiz's first question is to Salvador. Salvador, about strategy and governance, we have noted several improvements on the strategy and corporate governance over the past couple of years. The new elected government already publicly demonstrate divergences in both fronts. In your view, with all that has been public in the press, what would you be the main changes and what cannot be changed, considering that the bylaws and the SOE loss are not changed. If you could bring some more color on divestments, dividends, pricing policy, it would be very useful? Thank you.

Thank you for the question, Luiz. I think first and foremost, it's important to highlight. Petrobras of today is not the same company as from before a car wash, Lava Jato operation. Since 2014, 2015, we've been evolving and establishing a strong and robust corporate governance and compliance program, many initiatives on top of the new State-owned Enterprise Act and the anticorruption act that were created in this time frame, but today, we have on the operational level, many mechanisms of internal controls, ethics and compliance in place to prevent any risk related to regulatory issues, but also in terms of our decision-making process, our strategic level, we also have a stronger checks and balances in place to prevent any misuse of the company and any bad decision that could lead us to the serious issues that we had in the past. Of course, together with that and not only, as I mentioned in our bylaws, but because of the Brazilian legal framework that has been established also there is a personal and even criminal liability of the Directors and Officers in case there is any misuse of violation in place. So, any of those potential changes in our internal controls mechanism, they would lead eventually to at least public scrutiny with full disclosure of all those changes in case they happen, right? So, I think to conclude my answer, it's important to make sure that any changes in our rules, in our bylaws, in our internal policies, they need to go through our systematics. They can be done, there are different thresholds to be assessed and to validate the options. However, all the major changes in our corporate governance, they must be disclosed to the shareholders and make sure the transparency is there and is applicable to all the cases. Thank you for your question.

Thank you, Salvador. Luis next question is for Mastella. Mastella, about pricing policy, there is a clear difference between the company and some associations methodologies. Could you please share some thoughts about this difference? Today, do you see any need to adjust prices of gasoline and diesel?

Thank you, Luis. Well, thank you, Luis. Well, really, the import parity estimates can be very different numbers depending on which reference used to calculate. One number that's often used by local press is number generated by the local Importers Association. This few Importers Association has represented this year 2022, small -- less than 5% of the total imports of diesel and gasoline to Brazil. They are small scale actors. So, as small scale actors, they create an estimate, which is valid for them based on small-scale actuation, like the natural doesn't have access to facilities for discharge, and we don't have access to competitive freight prices, for example. And neither frequent access to markets to deal with search for better prices. When you say 5% is from micron, you may think that the remaining 95% would be better less, but not, that's not the case. In reality Petrobras presents less than half of the total imports of diesel and gasoline to Brazil, which is translation. -- very clear that the market is being supplied and the prices are fair in Brazil. Thank you for the question.

Thank you, Marcel. The next question comes from Bruno Montanari with Morgan Stanley and he sent us a message. Congratulations for the continued solid results and constant capital discipline, both clear features from the management team in recent years. And Bruno’s first question is for Rodrigo Araujo. Rodrigo, regarding the strategic plan in CapEx, what would be the process to revise assumptions in the event of a management change in 2023? What would be the steps to change strategy and capital intensity in a material way? And how fast could that happen?

Thank you, Bruno. Thank you for your question, and thank you for the message. So as you guys know, the business plan is an annual process that is run by the company every year and basically, it involves a relevant number of areas with assumptions, not only with respect to Brent prices and exchange rates, but also with respect to margin business volumes, et cetera. So we do have relevant assumptions for the various businesses that we are engaged in discount rates as well. So basically, this is an annual process that impacts the entire company. The approval of the business plan is also a process that has some relevant governance around it. So basically, we have a committee that is called Investment Divestment Committee, where we have about 12 executive managers that is the level right below the C-suite, those managers, those executive managers are statutory similar to statutory directors whenever they vote on that committee. So basically, their votes in terms of project approval or divestment approval or business plan approval, for example, is similar to the vote of a statutory Executive Officer at the C-suite. So basically, it has to go through the investment divestment committee. And then it goes through the Executive Officer Board, the C-suite and then it goes to the Board of Directors, of course, before being analyzed by the Board of Directors, it is analyzed by some of the Board committees, the investment committee and the Audit Committee as well. So basically, we do have several steps of approval of the company's business plan. We are now in the middle of preparing the most recent business plan as we do every year. So we're going to be delivering the 2023, 2027 business plan by the end of this year. So, the process will…

Thank you, Rodrigo. The next question is also for you. The company has delivered a robust divestment program, which contributed to clean up its capture structure today at a very healthy levels, thinking about the company's governance and procedures, if Petrobras were to become an acquirer of assets, what would be the evaluation criteria and approval mechanism? How fast could the material acquisition be made?

Thank you, Bruno, for your question. So first of all, a little bit similar to what we were talking about in terms of CapEx. We do have the business plan as the main guidelines. So any acquisition has to be, first of all, connected to the business plan somehow from on a strategic perspective. So the strategic adherence is one of the criteria that is analyzed for any acquisition. And then similarly to what we have for divestments, we have a similar governance for investments as well, so for acquisitions as well. We have internal valuations that have to be done. We have different valuation scenarios that have to be done. So as I mentioned, optimistic base case and stress test case, we have risk analysis, not only quantitative but also qualitative for all the investment and divestment processes -- most of them, of course, are approved by the Board of Directors. So they would all go through the kind of the same methodology that I mentioned before, so they will go through the investment divestment committee, then they will go through the C-suite and then to the Board of Directors, including the Board committees. Depending on the kind of acquisition, it might go through the Minority Committee of the Board of Direct – Minority Shareholders Committee of the Board of Directors as well. So we can basically think about the acquisition process as a little bit similar to the – to the divestment process, not exactly the same, but it's similar. We also have a fairness opinion external third-party, fairness opinions for the transactions as well. So that's a little bit of color on what's the acquisition process. Thank you, Bruno

Thank you, Rodrigo. The next question comes from Bruno Amorim with Goldman Sachs and it's for Mastella, Mastella, what's the current discount to international reference price that the company is observing in diesel and gasoline? Does the company see the need to an eventual price increase to reach the international parity?

Bruno. Thank you for your question. And you help me address another topic that's usually misread by the people that comment on our pricing practices. As a matter of fact, besides, as I told Luis minutes ago. Besides the many estimates of import parity prices, depending on which actor is estimating in each other needs in terms of competitiveness. There is also our practice, and we have been repeating that a lot in the last years is that we avoid pressing on to our clients the volatility of the market, of the international markets. With that, it's impossible, as a matter of fact, clearly, to have prices daily aligned with international parity. What happens is that, at a certain point, we are above, certain points, we are below, but we keep on looking for good alignment with international prices. This translates in a competitive average price in Brazil, which is clearly proved by the action by the actors like other importers, big importers, the ones that we use as references for our pricing. They continuously operation in Brazil, continues participation in the local market with their imports. So that's a proof that our prices are fair. Again, as I said, and that we will continue to avoid passing on volatility. So the local differences is natural, but we're still aligning our prices to the market. Relative to your question about, when and how is the difference for our worries on information on competitive issues, we can't comment on that, but thank you for your question.

Thank you, Mastella. The next question comes from Christian Audi with Santander. I would like to congratulate you on continuously solid operational results and strong capital discipline. That message was sent by Christian to us. The first question -- in fact, there are two questions about CapEx and they are both to Rodrigo Araujo. So first, can you give us a sense in the current plan of the criteria used for project approval in the upstream, refining and renewables. How different is timing and procedures for approving an upstream project versus refining versus renewables for an instance?

Thank you, Carla. Thank you, Christian for the question and for the message. So I've talked a little bit before about the business plan approval, the annual cycle, the discount rate, the hurdle rate approval, that is also an annual cycle. So in terms of differences between businesses, what we do is basically, of course, we have a set of assumptions that is different for each business. The specific assumptions that are connected with that business in terms of margins, volumes, market and competitive behavior, et cetera, but we, of course, have similar assumptions for the for overall business plan, things like crude prices or FX, this inflation rates, these are all standardized for the -- for all the businesses. We also have different discount rates for different risks and different businesses. So this is a little bit of the differences in assumptions. But of course, the approval process is very similar to all of them. As I've mentioned before and described, first, the process -- the project has to be developed. It has to go through all the technical revisions. We have technical revision groups for all the projects, then it has to be approved by the investment divestment committee, then the C-suite and then the Board of Directors. So this is a little bit of the of the approval process for new projects. But it's important to highlight that I think that what differentiates the businesses and the projects is, of course, the level of maturity, so if you consider, for example, the development of ultra-deepwater projects that we have, we have focused on standardizing the project, standardizing the production units over the last couple of years. So nowadays, we have a very solid standardized engineering and financial process for all of those projects, which of course makes…

Thank you, Rodrigo. The next question comes from Regis Cardoso with Credit Suisse. And he also sends us a message. Congratulations to the management team and Petrobras for another excellent result. This is a good example that good management can create value for society, as well as reconcile investments and shareholder return. Regis first question is for Fernando Borges. Fernando, what are the expectations around timing for the closing of the transactions of the 5% stake purchase option auction exercised by CNOOC in Búzios?

Regis, the transaction should be completed in November with an effective date starting on December 1. The steps to be completed this month are the approval of the guarantees referring to the commissioning by ANP and the payment of the transaction amount by the CNOOC. Thank you

Thank you, Fernando. Regis’ second question is for Rodrigo Araujo. Rodrigo, how does Petrobras see the possibility to divest from Braskem still in 2022? Can you also provide an overview on the progress of the ongoing divestment projects?

Thank you. Thank you, Regis, for the question and thank you for the message as well. So with respect to Braskem, as you've probably seen, Braskem has announced that Novonor has requested Braskem to engage and support its sale transaction with potential buyers. We are, of course, preparing ourselves to engage in the divestment process whenever it's convenient. So we're making our own studies and preparing ourselves to be part of the sale transaction as things move forward with respect to Novonor. So this is where we are with respect to Braskem. Of course, it's difficult to give you a sense of timing. But we continue to be engaged in the divestment transaction. With respect to the rest of the portfolio, I think that, in terms of relevant news, it's important to highlight what we announced yesterday, the injunction that we've reverted with respect to Bahia Terra. So now we're able to restart the process and continue with the divestment of Bahia Terra. Over the course of the year, we have already signed six transactions on a total amount of $4.4 billion, and we have closed eight transactions over the course of the year. We, of course, continue to be strongly focused on closing the transactions that we've already signed, and we expect to close additional transactions over the rest of the year. And this is a little bit of where we are in terms of divestments. Thank you, Regis.

Thank you, Regis. The next question comes from Gabriel Baja with Citi and it's for Joao Henrique. Joao Henrique, could you give us more information about the operation start process of the FPSO Almirante Barroso? How long does it take to commission your equipment and production system? When can we expect the production of the first oil?

Thanks for the question, Gabriel. The FPSO Almirante Barroso arrived at Basel shipyard at the end of the sales on October. Next month, we'll have some steps before the COA on the shipyard, which will happen early next year. Unitil complete integration, commissioning inspections in the scan testing. We expect the startup of the until the middle of next year. Thank you for the question, Gabriel.

Thank you, Joao Henrique. Garbriel's next question is for Rafael. Rafael, today, we see the company's investment plan focused on projects with high returns and lower cadence mainly in the pre-salt region. Looking at the next investment plan, can we expect any changes in the company's focus? Can we expect greater investments in renewables, for example?

Hi. Gabriel, excellent question. There will be no change in terms of capital discipline here in Petrobras. Suitable risk return reward is a key assumption for us to projects approvals. It makes Petrobras stronger, stronger means sustainable. On top of that, we are going to keep investing in decarbonizing our operations, for example, with the high SAP and new technological solutions that increase our ability to range x CO2 equivalent in our reservoir. We are going to keep growing with our renewable fuels producing investing in a dedicated plant for jet fuel with renewable content. We are going to keep investing through social responsibility area and forest, to keep forest alive and to increase forest area as it is a vacation here in Brazil. In terms of more investments in renewables, as long as we see maturity investment with suitable risk return reward, of course, we are going to invest on that. That is the group decisions. We have many executives inside Petrobras studying that to assure that we have a positive NPV under risk stress scenarios, we have executives from financial department, risk department, people -- our engineer that used to develop projects. We have people from market to select markets conditions. So whenever we see a suitable risk to return reward in this type of project, we are going to invest. So we need to wait for next strategic plan to see if there will be any innovation in our winner strategic plan that is in place here in Petrobras. Thank you, Gabriel, for your question. Carla, back to you.

Thank you, Rafael. Gabriel has another question and it's also for you. Looking at the new exploratory frontiers, we see the equatorial margin as a great promise for the company. However, there are some concerns, mainly regarding the environmental part of the region development. Could you tell us a little about the company's vision in relation to the development of the region, what are the main challenges and potentials for the region in terms of CapEx and reserves?

Okay, Gabriel. Petrobras, first of all, it's important to say that Petrobras contributes to sustainable growth and development of all country regions. Regarding equatorial margin, we expect benefit with our investments. We have already announced that more than $2 billion in exploratory investments in the margin equatorial. We are going to benefit population through tax, through generating income and employment to investing in these regions with both directly and indirect benefits that we will overcome to [indiscernible]. So it's very important that Petrobras be there to develop the resource, the Brazilian resource in the Northeast of the country, making into real wealth for population. We focus in sustainable growth. It is unacceptable to have unsustainable growth, but it is also unacceptable to have no growth at all, and in Petrobras, we have the ability, the capability to provide sustainable growth of those regions, and we are going to develop this fossil resource in the North and in the Northeast of the country and translate into wealth. We are going to take care of the people today and we are going to take care of the planet tomorrow. It's possible to develop in a sustainable growth with responsibility and Petrobras will do that. Carla, back to you.

Thank you, Rafael. Great. The next question comes from Monique Greco with Itau BBA and it's for Joao Henrique. Joao Henrique, could you please provide an update status on the contracting process for the new company of Route 3. Could you please comment on the expansion project status of [indiscernible]. Should they continue after the next business plan revision? What is the status of these projects?

Hi, Monique. Route 3 Integrated Project is at 93% of physical progress. CBC pipelines are 100% completed in the phase of commissioning. Petrobras had already started the necessary contract to finish remaining scope of the processing natural unit and expect to start operation by 2024. We are waiting for complete the contracting in order to have a detailed planning to have the exact date of the entire staff of the unit. [indiscernible] construction projects are still on the technical economic analysis. It would be prepared to produce Group 2 be getting base oil and increase diesel NKV production. Regarding net following our portfolio management strategy in the refining divestments plan, we started the sale process on June 27. At the same time, Board decided to finish the construction to remaining scope of 1, which meets environmental conditions in the adds value to the asset. Thank you.

Thank you, Joao Henrique. The next question and the last question as well is from Rodolfo De Angele with JPMorgan and it’s for Rodrigo Costa. Rodrigo, in the elected President's government plan, there is a discussion on the importance of reducing fuel imports. Any comment from an operational point of view, if it's possible to increase production on the existing refining facilities? Are there alternatives for brownfield expansion, if positive, what would be the size of the potential production?

Hi, Rodolfo De Angele. Petrobras refineries operation rates are comfortable with our commercial commitments. And we respect the safety operations and logistics conditions. This year, the refinery utilization level is close to 90% despite several refinery turnaround that we did this year. This brings to mind that we are close to the first quartile of US refinery utilization rate according to Solomon's benchmarking. In line with our current strategic plan, we are investing on capacity expansion, improvement in our conversion, focus on high-margin the RIN, derivates and hydrotreating diesel. Whereas Joao Henrique said, we have some refining expansions underway and when the gas lube hydrocracking unit starts operating. It will increase our capacity by 90,000 barrels per day of both ultra low sulfur diesel and that fuel and 12,000 barrels per day of lubricants of Group II. In addition, we have a project to REVAP RNEST's Train 1 and to conclude Train 2, which will increase the refinery capacity by 145,000 barrels per day. With this expansion in place, we will have an extra output capacity of 90,000 barrels per day of ultra low sulfur diesel. We are also investing in our expansion of our hydrotreatment capacity for ultra low sulfur diesel by approximately 130,000 barrels per day with a new unit under construction at [indiscernible] and improvement of existing units at [indiscernible]. Thanks for your question

Thank you, Rodrigo. Thank you all. At this time, the Q&A session is over. If you have any further questions, you can send it to our Investor Relations team. Rodrigo Araujo will now make his final remarks. Please, Rodrigo, go ahead.

Thank you, Carla. Thanks, everyone, once again for being with us today in our Q3 earnings call. As I've mentioned before, a very solid quarter, very solid results. We're very happy with the results. There, of course, results not only of the external positive external environment, but also from the important strategic decisions that we've made over time and with the capability of properly executing portfolio management and project delivering that we've had over the last couple of years. So, the company has proven that, it's not only ready to face stress scenarios like we saw in 2020, but also capture the upside, when the external environment is favorable. So very happy with the results. And thank you for being with us here during the Q3 earnings call. Thank you.