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Results Announcement
                                 1st Quarter 2011 
                                      (IFRS)




Conference Call/Webcast
Almir Guilherme Barbassa 
CFO and Investor Relations Officer


May 17th, 2011




                                                     1
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,
specifically the Company’s most recent Annual Report on       CAUTIONARY STATEMENT FOR US INVESTORS
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
HIGHLIGHTS OF THE QUARTER




o Record net income;

o Start‐up  of  pre‐salt  EWT  in  Campos  and  Santos  Basins:    Brava, 
   Tracajá and Lula Northeast;

o New  oil  discoveries  in  Santos  Basin  pre‐salt  area,  such  as 
   Carioca Northeast and Macunaíma;

o Start‐up of gas pipelines linking Lula Pilot and Mexilhão platform 
   and connecting Caraguatatuba and Taubaté (Gastau);

o New  diesel  and  naphtha  HDT  units  in  RPBC,  REGAP  and  REVAP 
   refineries;

o US$ 6 billion Bond issuance of 5, 10 and 30 year.




                                                                             3
MAIN INDICATORS


                                                                                                   ∆% 
                                                         1Q11                4Q10                             1Q10
                                                                                                1Q11 X 4Q10

 EBITDA (R$/million)                                    16,093              14,584                 10%        15,076

 OPERATING INCOME¹ (R$/million)                         12,536              10,773                 16%        11,617

 NET INCOME² (R$/million)                               10,985              10,602                  4%        7,726

 AVERAGE REALIZATION PRICES – ARP (R$/bbl)              163.58              158.89                  3%        157.39

 AVERAGE REALIZATION PRICES – ARP (U$/bbl)               98.15               93.66                  5%        87.29

 Brent (US$/bbl)                                        104.97               86.48                 21%        76.24

 Average sales dollar (R$)                                1.67                1.70                 ‐2%         1.80

 Production (thousand bbl/day)                           2,627               2,628                   ‐        2.547




                                  ¹ Income before financial results, profit sharing and taxes
                                  ² Net income attributable to Petrobras shareholders                                  4

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Petrobras reported financial results for the third quarter of 2010. Net income increased 10% compared to the same period last year to R$8.566 billion. Domestic oil and gas production grew 2% while refinery output increased due to a plant restart. Investments totaled R$56.5 billion year-to-date, 11% higher than the first nine months of 2009. Average oil prices remained stable in Brazil despite declines in international markets.

OIL AND GAS PRODUCTION – 1Q11 VS 1Q10

                     Total Production (daily average)                                    Brazilian Production (daily average) 

                                      +3%                                                                                2,385
                     2,547                          2,627                                   2,302          +4%
                                       ‐1%                                                                               341              Natural  
                       245                           242          International               317           8%
                                                                                                                                          Gas
(thous bpd)




                                       4%                                                                   3%                            Oil and 
                                                   2,385                                                                2,044             NGL
                      2,302                                         Brazil                   1,985




                    1Q10                           1Q11                                      1Q10                       1Q11
              o Increase  in  production  due  to  ramp‐up  of  installed  units  in  2010  in  Campos  Basin,  Lula  Pilot,  and  EWTs of 
                Tiro, Sidon and Guará;
              o Start‐up of new wells in Akpo and Agbami (Nigeria) partially offset by decline of mature fields in Argentina 
                and Colombia;
              o Investments  in  infrastructure  and  new  NG  production  units  contributed  to  a  supply  growth  of  8%  when 
                compared 1Q11 VS 1Q10.

                                                                                                                                                 5
SANTOS BASIN PRE‐SALT UPDATE




                               o Approval of chartering of 2 new  FPSOs for the 
                                 Guará‐Norte and Cernambi projects;
                               o New  discovery  of  good  quality  oil  in  the  pre‐
                                 salt  reservoirs  of  block  BM‐S‐9,  informally 
                                 known as Carioca Nordeste; 
                               o Discovery  of  a  new  accumulation  of  good 
                                 quality  oil  in  Parati (BM‐S‐10),  named 
                           ‘     Macunaíma;
                               o 8  new  drilled  wells  in  2011,  taking  Santos 
                                 Basin Pre‐Salt total to 28 wells drilled;
                               o PLANSAL Revision;
                               o Start up of Lula Nordeste EWT;
                               o Restart of Guará EWT;
                               o The  current  fleet  of  drilling  rigs  (6)  will 
                                 increase to 11 by the and of the year.




                                                                                         6
CONTINUOUS PROJECTS OPTIMIZATION SINCE THE FIRST 
PLANSAL
PLANSAL IN 2008
  Capex




                                                    Transfer
                                                    of Rights

                                                    Areas Under
                                                    Concession
Net Present
  Value




                                                    Areas Under
                                                    Concession




                                                                 7
EXTENDED WELL TESTS IN PRE‐SALT




                                                            EWT Results:

                                                        o Steady  Production  without  decline 
                                                          during the test;
                                                        o   Good behavior of the reservoirs;
                                                        o   Excellent lateral communication;
                                                        o   No flow assurance issues;
                                                        o   Restriction due to gas flaring limits.




                     6 EWT completed and 4 still underway


                                                                                                     8

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DRILLING OPTIMIZATION IN THE SANTOS PRE‐SALT




  o Since the beginning of the activities in the Santos pre‐salt, the drilling time has decreased, reducing Capex.



     * Wells ordered by drilling duration.
                                                                                                                     9
AVERAGE REALIZATION PRICE



US$/bbl                                                        R$/bbl

 120                                                                                                      1Q11 AVERAGE
                                                             220
                                                      105                                              ARP Petrobras: 163.58
 100                                                                                                   ARP USA: 180.54          
                                                 86          170
                                     78               94
  80                       75 76           77
                      68                         80
                59         70   73    74    72               120
  60                 64
          44                                                                               2010 AVERAGE
                                                                                        ARP Petrobras: 158.26
                                                             70
  40           49                                                                       ARP USA: 150.67         
          32
  20                                                         20
                                                               1Q08   2Q08   3Q08   4Q08 1Q09   2Q09    3Q09   4Q09   1Q10   2Q10 3Q10   4Q10   1Q11
       1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
                                                                                    ARP USA                      ARP Petrobras
   Petrobras Oil Price (Average)           Brent (US$/bbl)



 o Oil price volatility in the quarter (Brent went from US$ 86,48 in the 4Q10 to US$ 104,97 in the 1Q11) due to 
   geopolitical issues in North Africa, especially in Libya.   


                                                                                                                                                 10
LIFTING COST IN BRAZIL
                                               175.30
                   R$/barrel                                                              US$/barrel
                                                                                                                104.97



                                      147.02
                                                                                                        86.48
                  140.16
         137.23
                           134.51
                                                                                  78.30
                                                                       76.24                   76.86
                                                   50.66                                                          30.48
                                                                                  24.50      24.67      25.58
         43.82    43.91    42.72       43.47                          23.73

                                                                                                                 19.10
                                                   31.66          14.33          14.71       14.07     15.29
         26.87    26.37    24.26        26.13


         16.95    17.54    18.46       17.34       19.00          9.40           9.79        10.60     10.29     11.38


      1Q10 2Q10 3Q10 4Q10 1Q11                                   1Q10          2Q10       3Q10         4Q10     1Q11
                                    Brent           Government Take           Lifting Cost

o 1Q11 vs. 4Q10 Comparison:
    o Lifting cost increased due to higher expenses with well intervention and scheduled stoppages;
    o Higher government take due to higher reference oil price.


                                                                                                                          11
OIL PRODUCTS AND NATURAL GAS SALES IN 
  DOMESTIC MARKET


                                 OIL PRODUCTS                                                NATURAL GAS

                                     2.052          1.968                                      363
                     1.851
                                     578                    OTHERS                             125           291
                                                     525
                      505                                                        257
Thous. bpd




                                                                                                             46    Thermal
                                     219                                          30
                                                     208     LPG
                      203
                                     414             439 GASOLINE
                      410
                                                                                  227          238           245   Non thermal


                      733            841             796    DIESEL



                                                                                1Q10          4Q10         1Q11
                    1Q10            4Q10            1Q11

             o   Domestic oil products sales increased 6% in the 1Q11 vs 1Q10 comparison, due to the Brazilian economy growth;
             o   Jet Fuel sales increased 18% in the 1Q11 vs. 1Q10;
             o   Natural Gas sales increased 13% (1Q11 vs 1Q10), due to industrial and power generation demand.



                                                                                                                                 12

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OPERATING RESULTS – BRAZILIAN REFINING
          Crude Oil Processed                                   Oil Products Production               Utilization Factor and
Thous. Barrels/day                         Thous. Barrels/day                                    %   Brazilian Oil Throughput
2.000                                       2.100
                                                                                               100
                              1,852                                     6.4%
             1,738                                                                 1,877
1.800                                                           1,765
                                            1.800                                              95
                               332
1.600
              341                                                                   424                                      89.8
                                            1.500
                                                                418                            90
1.400                                                                                                    86.2
                                                                                    244        85
1.200                                                           239                                                          82.1
                                            1.200                                                        80.4
1.000                                                                                          80
                                                                                    390
                                              900               353
  800
                              1,520                                                 92         75
             1,397                                               73
  600                                         600
                                                                                               70
  400                                                                    6.5%
                                                                682                 727
                                              300
  200                                                                                          65


  -                                             0                                              60
              1Q10            1Q11                              1Q10                1Q11                 1Q10               1Q11
               Imported Oil Processed
                                                           Diesel       Jet Fuel    Gasoline         Utilization Factor - Brazil (*)
               Brazilian Oil Processed
                                                                                                     Brazilian Oil Throughput
                                                           Fuel Oil     Others

  o Increase in crude oil processed in the 1Q11 due to revamps and refining expansions during 2010. Schedule stoppages 
    in the 1Q10 also contributed to the increase.
(*) Utilization Factor reached 92.1% in March/2011                                                                                     13
OPERATING INCOME 1Q11 vs 4Q10 (CONSOLIDATED) 

(R$ Million)




                                                1,016              627                 (188)           12,536
               10,773         308




            4Q10             Sales               COGS             Expenses             Other             1Q11
          Operating        Revenues                                                   Expenses         Operating 
           Income                                                                                       Income




    o Positive effect on COGS due to inventories built at lower prices in the 4Q10 (R$ 1.2 billion);
    o Decrease in Expenses due to lower exploratory costs (R$ 425 million) and  SG&A expenses (R$ 210 million).




                                                                                                                    14
NET INCOME 1Q11 vs 4Q10 (CONSOLIDATED) 

 (R$ Million)




                       1,763             96             (112)         (1,189)
         10,602                                                                       (175)          10,985




       4Q10         Operating        Financial       Interest in      Taxes         Minority          1Q11
     Net Income      Income           Results       Investments                     Interest        Net Income




  o Higher income taxes due to lower tax benefit from Interest on Capital in the 1Q11 (R$ 754 million).




                                                                                                                 15
EXPLORATION AND PRODUCTION
Operating Income 1Q11 vs 4Q10

(R$ Million)
                           3,983         (815)         (786)           388             (507)   14,142

               11,879




                 4Q10      Price Effect Volume Effect Cost Effect     Volume Effect Operat.     1Q11
                Operat.   on Revenues on Revenues      on COGS          on COGS     Expenses   Operat.
                Income                                                                         Income



      o Negative volume effect due to lower sales/oil transfers to Downstream;
      o Increase in COGS due to higher lifting costs and government take.
      o Higher lifting costs partially offset by lower DD&A ( ‐ R$ 1,01 per barrel);



                                                                                                         16

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DOWNSTREAM
Operating Income 1Q11 vs 4Q10

(R$ Million)


                              2,676          (1,497)


                                                            (4,690)

                1,508


                                                                           1,466            43            (494)




                 4Q10       Price Effect   Volume Effect Cost Effect    Volume Effect     Operat.          1Q11
                Operat.    on Revenues     on Revenues    on COGS         on COGS        Expenses         Operat.
                Income                                                                                    Income



    o Positive price effect due to higher oil and oil products prices, especially reflected on exports;
    o Sales of oil and oil products inventories built at lower prices in the 4Q10 avoided higher increase in COGS.




                                                                                                                     17
GAS & POWER, INTERNATIONAL and
DISTRIBUTION (1Q11 vs 4Q10)
                                                                   (R$ Million)

                                                                    1Q11          VS.          4Q10
 Gas & Power




                                        Operat. Income:           R$ 745                    R$ 529                41%

                                      o Higher average market prices of natural gas and reduction of
                                        acquisition/transfer costs of domestic gas;
                                      o Lower LNG imports and consumption volume;
                                      o Commercialization margins gains on power energy, due to average
                                        cost reduction at the spot market.
 International




                                                                     1Q11          VS.          4Q10
                                         Operat. Income:           R$ 903                      R$ 272             232%


                                      o Earnings increased due to higher commodities prices;
                 FPSO Campo de Akpo
                                      o Lower exploratory expenses and dry wells write-offs also contributed to a better
                                        result.
 Distribution




                                                                    1Q11           VS.         4Q10
                                        Operat. Income:            R$ 559                    R$ 443               26%

                                      o 6% increase in commercialization margins offset by 7% reduction in
                                        sales volume;
                                      o This increase was compensated by the 7% reduction in sales volumes.
                                                                                                                       18
INVESTMENTS 1Q2011 vs 1Q2010


                       1Q2011                                                             1Q2010 
                   R$ 15.9 billion                                                      R$ 17.8 billion
(R$ billion)                                                      (R$ billion)           Others 
                 Others* 
                    0.8                                                                     0.6
       Inter  ‐ 0.9                                                      Inter  ‐ 1.5
    G&P*  ‐ 1.0

                                               E&P*              G&P*  ‐ 2.4                              E&P*
                                                7.2                                                        7.9


           RTM*
            6.0                                                                  RTM*
                                                                                  5.4


          o    E&P: Decreased investments as a result of reduced exploration expending for the quarter;
          o    RTM: Expansion (33%), quality (37%) and others (30%); 
          o    G&P: Complementary phase of investments, after massive infrastructure built.



                                            *Includes projects developed  by SPEs                                19
LEVERAGE

                                       Net Debt/Net Cap.                         Net Debt/Ebitda
         6                                                                                                      40%

         5
                                            34%                                                                 30%
         4              32%                                         16%        17%                  17%
         3                                                                                                      20%
                                              1.52
         2             1.35                                                     1.03
                                                               0.94                                1.03
                                                                                                                10%
         1

         0                                                                                                      0%
                       1Q10                 2Q10              3Q10             4Q10                1Q11


                    R$ Billion                 03/31/11    12/31/10
  Short Term Debt                                 16.6       15.7
                                                                          o Petrobras`  Leverage  level  kept  stable 
  Long Term Debt                                  112.4     102.2
                                                                            when compared 1Q11 VS 4Q10;
  Total Debt                                      129.0     117.9
     Cash and Cash Equivalents                    43.3       30.3         o QoQ higher  long  term  debt    is 
     Tradeable Securities                         19.6       25.5           explained  by  bonds  issuance  (  US$  6 
  Adjusted Cash and Cash Equivalents              62.9       55.8           billion), last January.
  Net Debt                                        66.1       62.1
  Net Debt/Ebitda                                 1.03X     1.03X
                   US$ Billion                 03/31/11    12/31/10
  Net Debt                                        40.6       37.3



                                                                                                                         20

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marathon oil  4th Quarter 2007 marathon oil  4th Quarter 2007
marathon oil 4th Quarter 2007

Marathon Oil Corporation reported financial results for the fourth quarter and full year of 2007. Net income for Q4 2007 was $668 million compared to $1.079 billion for the same period in 2006. For the full year, net income was $3.956 billion compared to $5.234 billion in 2006. Key events in 2007 included acquiring Western Oil Sands, completing an LNG facility in Equatorial Guinea, and beginning major refinery expansion projects. Production is expected to increase in 2008 from new oil projects coming online.

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




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Webcast about the 1st Quarter Results 2011 - IFRS

  • 1. Results Announcement 1st Quarter 2011  (IFRS) Conference Call/Webcast Almir Guilherme Barbassa  CFO and Investor Relations Officer May 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, specifically the Company’s most recent Annual Report on CAUTIONARY STATEMENT FOR US INVESTORS 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. HIGHLIGHTS OF THE QUARTER o Record net income; o Start‐up  of  pre‐salt  EWT  in  Campos  and  Santos  Basins:    Brava,  Tracajá and Lula Northeast; o New  oil  discoveries  in  Santos  Basin  pre‐salt  area,  such  as  Carioca Northeast and Macunaíma; o Start‐up of gas pipelines linking Lula Pilot and Mexilhão platform  and connecting Caraguatatuba and Taubaté (Gastau); o New  diesel  and  naphtha  HDT  units  in  RPBC,  REGAP  and  REVAP  refineries; o US$ 6 billion Bond issuance of 5, 10 and 30 year. 3
  • 4. MAIN INDICATORS ∆%  1Q11 4Q10 1Q10 1Q11 X 4Q10 EBITDA (R$/million) 16,093 14,584 10% 15,076 OPERATING INCOME¹ (R$/million) 12,536 10,773 16% 11,617 NET INCOME² (R$/million) 10,985 10,602 4% 7,726 AVERAGE REALIZATION PRICES – ARP (R$/bbl) 163.58 158.89 3% 157.39 AVERAGE REALIZATION PRICES – ARP (U$/bbl) 98.15 93.66 5% 87.29 Brent (US$/bbl) 104.97 86.48 21% 76.24 Average sales dollar (R$) 1.67 1.70 ‐2% 1.80 Production (thousand bbl/day) 2,627 2,628 ‐ 2.547 ¹ Income before financial results, profit sharing and taxes ² Net income attributable to Petrobras shareholders 4
  • 5. OIL AND GAS PRODUCTION – 1Q11 VS 1Q10 Total Production (daily average)  Brazilian Production (daily average)  +3% 2,385 2,547 2,627 2,302 +4% ‐1% 341 Natural   245 242 International 317 8% Gas (thous bpd) 4% 3% Oil and  2,385 2,044 NGL 2,302 Brazil 1,985 1Q10 1Q11 1Q10 1Q11 o Increase  in  production  due  to  ramp‐up  of  installed  units  in  2010  in  Campos  Basin,  Lula  Pilot,  and  EWTs of  Tiro, Sidon and Guará; o Start‐up of new wells in Akpo and Agbami (Nigeria) partially offset by decline of mature fields in Argentina  and Colombia; o Investments  in  infrastructure  and  new  NG  production  units  contributed  to  a  supply  growth  of  8%  when  compared 1Q11 VS 1Q10. 5
  • 6. SANTOS BASIN PRE‐SALT UPDATE o Approval of chartering of 2 new  FPSOs for the  Guará‐Norte and Cernambi projects; o New  discovery  of  good  quality  oil  in  the  pre‐ salt  reservoirs  of  block  BM‐S‐9,  informally  known as Carioca Nordeste;  o Discovery  of  a  new  accumulation  of  good  quality  oil  in  Parati (BM‐S‐10),  named  ‘ Macunaíma; o 8  new  drilled  wells  in  2011,  taking  Santos  Basin Pre‐Salt total to 28 wells drilled; o PLANSAL Revision; o Start up of Lula Nordeste EWT; o Restart of Guará EWT; o The  current  fleet  of  drilling  rigs  (6)  will  increase to 11 by the and of the year. 6
  • 7. CONTINUOUS PROJECTS OPTIMIZATION SINCE THE FIRST  PLANSAL PLANSAL IN 2008 Capex Transfer of Rights Areas Under Concession Net Present Value Areas Under Concession 7
  • 8. EXTENDED WELL TESTS IN PRE‐SALT EWT Results: o Steady  Production  without  decline  during the test; o Good behavior of the reservoirs; o Excellent lateral communication; o No flow assurance issues; o Restriction due to gas flaring limits. 6 EWT completed and 4 still underway 8
  • 9. DRILLING OPTIMIZATION IN THE SANTOS PRE‐SALT o Since the beginning of the activities in the Santos pre‐salt, the drilling time has decreased, reducing Capex. * Wells ordered by drilling duration. 9
  • 10. AVERAGE REALIZATION PRICE US$/bbl R$/bbl 120 1Q11 AVERAGE 220 105 ARP Petrobras: 163.58 100 ARP USA: 180.54           86 170 78 94 80 75 76 77 68 80 59 70 73 74 72 120 60 64 44 2010 AVERAGE ARP Petrobras: 158.26 70 40 49 ARP USA: 150.67          32 20 20 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 ARP USA ARP Petrobras Petrobras Oil Price (Average) Brent (US$/bbl) o Oil price volatility in the quarter (Brent went from US$ 86,48 in the 4Q10 to US$ 104,97 in the 1Q11) due to  geopolitical issues in North Africa, especially in Libya.    10
  • 11. LIFTING COST IN BRAZIL 175.30 R$/barrel US$/barrel 104.97 147.02 86.48 140.16 137.23 134.51 78.30 76.24 76.86 50.66 30.48 24.50 24.67 25.58 43.82 43.91 42.72 43.47 23.73 19.10 31.66 14.33 14.71 14.07 15.29 26.87 26.37 24.26 26.13 16.95 17.54 18.46 17.34 19.00 9.40 9.79 10.60 10.29 11.38 1Q10 2Q10 3Q10 4Q10 1Q11 1Q10 2Q10 3Q10 4Q10 1Q11 Brent Government Take Lifting Cost o 1Q11 vs. 4Q10 Comparison: o Lifting cost increased due to higher expenses with well intervention and scheduled stoppages; o Higher government take due to higher reference oil price. 11
  • 12. OIL PRODUCTS AND NATURAL GAS SALES IN  DOMESTIC MARKET OIL PRODUCTS NATURAL GAS 2.052 1.968 363 1.851 578 OTHERS 125 291 525 505 257 Thous. bpd 46 Thermal 219 30 208 LPG 203 414 439 GASOLINE 410 227 238 245 Non thermal 733 841 796 DIESEL 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 o Domestic oil products sales increased 6% in the 1Q11 vs 1Q10 comparison, due to the Brazilian economy growth; o Jet Fuel sales increased 18% in the 1Q11 vs. 1Q10; o Natural Gas sales increased 13% (1Q11 vs 1Q10), due to industrial and power generation demand. 12
  • 13. OPERATING RESULTS – BRAZILIAN REFINING Crude Oil Processed Oil Products Production Utilization Factor and Thous. Barrels/day Thous. Barrels/day % Brazilian Oil Throughput 2.000 2.100 100 1,852 6.4% 1,738 1,877 1.800 1,765 1.800 95 332 1.600 341 424 89.8 1.500 418 90 1.400 86.2 244 85 1.200 239 82.1 1.200 80.4 1.000 80 390 900 353 800 1,520 92 75 1,397 73 600 600 70 400 6.5% 682 727 300 200 65 - 0 60 1Q10 1Q11 1Q10 1Q11 1Q10 1Q11 Imported Oil Processed Diesel Jet Fuel Gasoline Utilization Factor - Brazil (*) Brazilian Oil Processed Brazilian Oil Throughput Fuel Oil Others o Increase in crude oil processed in the 1Q11 due to revamps and refining expansions during 2010. Schedule stoppages  in the 1Q10 also contributed to the increase. (*) Utilization Factor reached 92.1% in March/2011 13
  • 14. OPERATING INCOME 1Q11 vs 4Q10 (CONSOLIDATED)  (R$ Million) 1,016 627 (188) 12,536 10,773 308 4Q10 Sales  COGS Expenses Other  1Q11 Operating  Revenues Expenses  Operating  Income Income o Positive effect on COGS due to inventories built at lower prices in the 4Q10 (R$ 1.2 billion); o Decrease in Expenses due to lower exploratory costs (R$ 425 million) and  SG&A expenses (R$ 210 million). 14
  • 15. NET INCOME 1Q11 vs 4Q10 (CONSOLIDATED)  (R$ Million) 1,763 96 (112) (1,189) 10,602 (175) 10,985 4Q10       Operating  Financial  Interest in  Taxes Minority  1Q11 Net Income Income Results Investments Interest Net Income o Higher income taxes due to lower tax benefit from Interest on Capital in the 1Q11 (R$ 754 million). 15
  • 16. EXPLORATION AND PRODUCTION Operating Income 1Q11 vs 4Q10 (R$ Million) 3,983 (815) (786) 388 (507) 14,142 11,879 4Q10 Price Effect Volume Effect Cost Effect Volume Effect Operat. 1Q11 Operat. on Revenues on Revenues on COGS on COGS Expenses Operat. Income Income o Negative volume effect due to lower sales/oil transfers to Downstream; o Increase in COGS due to higher lifting costs and government take. o Higher lifting costs partially offset by lower DD&A ( ‐ R$ 1,01 per barrel); 16
  • 17. DOWNSTREAM Operating Income 1Q11 vs 4Q10 (R$ Million) 2,676 (1,497) (4,690) 1,508 1,466 43 (494) 4Q10 Price Effect Volume Effect Cost Effect Volume Effect Operat. 1Q11 Operat. on Revenues on Revenues on COGS on COGS Expenses Operat. Income Income o Positive price effect due to higher oil and oil products prices, especially reflected on exports; o Sales of oil and oil products inventories built at lower prices in the 4Q10 avoided higher increase in COGS. 17
  • 18. GAS & POWER, INTERNATIONAL and DISTRIBUTION (1Q11 vs 4Q10) (R$ Million) 1Q11 VS. 4Q10 Gas & Power Operat. Income: R$ 745 R$ 529 41% o Higher average market prices of natural gas and reduction of acquisition/transfer costs of domestic gas; o Lower LNG imports and consumption volume; o Commercialization margins gains on power energy, due to average cost reduction at the spot market. International 1Q11 VS. 4Q10 Operat. Income: R$ 903 R$ 272 232% o Earnings increased due to higher commodities prices; FPSO Campo de Akpo o Lower exploratory expenses and dry wells write-offs also contributed to a better result. Distribution 1Q11 VS. 4Q10 Operat. Income: R$ 559 R$ 443 26% o 6% increase in commercialization margins offset by 7% reduction in sales volume; o This increase was compensated by the 7% reduction in sales volumes. 18
  • 19. INVESTMENTS 1Q2011 vs 1Q2010 1Q2011 1Q2010  R$ 15.9 billion R$ 17.8 billion (R$ billion) (R$ billion) Others  Others*  0.8 0.6 Inter  ‐ 0.9 Inter  ‐ 1.5 G&P*  ‐ 1.0 E&P* G&P*  ‐ 2.4 E&P* 7.2 7.9 RTM* 6.0 RTM* 5.4 o E&P: Decreased investments as a result of reduced exploration expending for the quarter; o RTM: Expansion (33%), quality (37%) and others (30%);  o G&P: Complementary phase of investments, after massive infrastructure built. *Includes projects developed  by SPEs 19
  • 20. LEVERAGE Net Debt/Net Cap. Net Debt/Ebitda 6 40% 5 34% 30% 4 32% 16% 17% 17% 3 20% 1.52 2 1.35 1.03 0.94 1.03 10% 1 0 0% 1Q10 2Q10 3Q10 4Q10 1Q11 R$ Billion 03/31/11 12/31/10 Short Term Debt 16.6 15.7 o Petrobras`  Leverage  level  kept  stable  Long Term Debt 112.4 102.2 when compared 1Q11 VS 4Q10; Total Debt 129.0 117.9 Cash and Cash Equivalents 43.3 30.3 o QoQ higher  long  term  debt    is  Tradeable Securities 19.6 25.5 explained  by  bonds  issuance  (  US$  6  Adjusted Cash and Cash Equivalents 62.9 55.8 billion), last January. Net Debt 66.1 62.1 Net Debt/Ebitda 1.03X 1.03X US$ Billion 03/31/11 12/31/10 Net Debt 40.6 37.3 20
  • 21. Information: Investor Relations +55 21 3224-1510 petroinvest@petrobras.com.br 21 21