Petrocom Bras Company
Petrocom Bras Company
Petrocom Bras Company
intended to serve as
ement. Copyright
uced, stored in a
ectronic, mechanical,
Exhibit 7 Petrobras Balance Sheet and Income Statement U.S. GAAP (in $ millions)
As of December, 31
ASSETS
2001
2000
1999
7,360
2,759
2,399
1,808
5,826
2,211
3,087
1,402
3,015
1,575
2,270
1,307
14,326
12,526
8,167
19,179
746
2,613
22,538
36,864
19,237
5,051
2,322
26,610
39,136
18,426
4,925
2,215
25,566
33,733
1,783
2,041
4,220
8,044
2,011
4,080
3,549
9,640
1,314
5,765
2,732
9,811
3,380
5,083
5,908
1,123
15,494
23,538
79
13,247
36,864
4,319
3,426
4,833
2,060
14,638
24,278
153
14,705
39,163
5,163
1,781
4,778
1,241
12,963
22,774
237
10,722
33,733
Current Assets
Cash and cash equivalent
Accounts receivable
Inventories
Other current assets
Total current assets
Permanent Assets
Property, plant and equipment
Receivables from Brazilian Government
Others
Total non-current assets
Total Assets
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Trade accounts payable
Short-term debt
Other current liabilities
Total current liabilities
Non-current liabilities
Employees post retirement benefits
Project financings and capital lease obligations
Long-term debt
Other liabilities
Total non-current liabilities
Total Liabilities
Minority Interests
Total Stockholders Equity
Total Liabilities + Equity
As of December, 31
Total Revenues
Value-added taxes, freight, and specific parcel price
Net Revenues
CoGS
Gross Profit
Total Depreciation, depletion and amortization
Exploration
Selling, general, and administration expenses
Research and development expenses
Total Cost and Expenses
Operating Income
Nonoperating Items
Income before Financial Items
EBITDA
Financial Income (Expenses)
Net Income before Extraordinary Items
Net Income (average tax rate of 35%)
2001
2000
1999
34,145
-9,596
24,549
-12,807
11,742
-1,729
-549
-1,751
-132
-4,161
7,581
-1,361
6,220
8,498
567
4,749
3,491
35,496
-8,541
26,955
-13,449
13,506
-2,022
-477
-1,450
-152
-4,101
9,405
-1,126
8,279
10,778
204
5,821
5,342
23,467
-7,109
16,358
-8,210
8,148
-2,262
-295
-1,282
-132
-3,971
4,177
-723
3,454
6,011
213
2,487
727
Source: Adapted from F. J. McGann and M. Sequeira, US GAAP results show no surprises, Merrill Lynch, July 1, 2002.
Petrobrasa
Pemexb
PDVSAc
Pecom
9.3
1,568
3.26
4.85
53
4,338
3.34
4.06
103.4
3,973
2.17
3.76
1.1
184
2.72
6.4
32,390
18,491
12,483
11,118
9,362
4,194
60,913
37,994
13,439
36,414
26,668
-3,729
57,542
12,273
37,098
11,348
11,167
3,993
6,194
2,656
2,817
1,674
693
102
15%
127%
44%
-43%
-47%
-67%
Source: Compiled and adapted from Rodrigo Lopes <[email protected]>, Dados Relatorio Petrobras, to
Ricardo Reisen de Pinho <[email protected]>, March 7, 2003, and March 13, 2003, and companies reports
a
Brazilian GAAP
Exhibit 11a Perez Companc: Seven-year Debt Refinancing Schedule (Estimates as of March 31, 2002 in $ millions)
Bank Loans
Bonds
Total
1 Year
834
93
927
2 Years
159
285
444
3 Years
147
0
147
4 Years
86
0
86
5 Years
20
189
209
6 Years
20
378
398
7 Years
6
0
6
Source: Adapted by casewriter from Frank J. McGann and Marcus Sequeira, Perez Companc - Can it weather the storm? Merrill Lynch, June 3, 2002, p.
Exhibit 11b Perez Companc: Debt Breakdown by Type (Estimates as of March 31, 2002 in $ millions).
1 Year
Bonds
Foreign Banks
Trade Finance
Local Banks
Accrued Interest
Total
93
435
292
51
56
927
Years 1-7
Total
945
802
364
52
56
2,219
% Total
10%
54%
80%
98%
100%
42%
Source: Adapted by casewriter from Frank J. McGann and Marcus Sequeira, Perez Companc - Can it weather the storm? Merrill Lynch, June 3, 2002, p.
2002 in $ millions)
2000A
2001A
2002E
175
196
13
384
-99
67
352
-496
-63
-175
235
220
7
462
-89
84
456
-576
-65
-178
151
305
19
475
-92
64
447
-794
-64
-382
32
265
12
309
-50
0
258
-98
0
210
-207
-184
-411
160
CASH FLOW
Net income from operations
Depreciation
Exploration expense
Gross Cash Flow Perez Companc
Earnings unconsolidated affiliates
Dividends - unconsolidated affiliates
Gross Cash Flow - adjusted for equity affiliates
Capital Expenditures
Dividends
Net Gross Cash Flow - Discretionary
Net Gross Cash Flow Discretionary adjusted for equity
affiliates
Source: Adapted by casewriter from Frank J. McGann and Marcus Sequeira, Perez Companc - Can it weather the storm? Merrill Lynch, June 3, 2002, pg. 6.
2003E
2004E
2005E
2006E
2007E
79
267
12
358
-37
0
321
-196
-39
122
125
284
10
418
-40
0
379
-295
-43
80
192
317
10
519
-41
0
478
-491
-48
-19
290
317
10
617
-43
0
574
-491
-52
73
347
317
10
674
-45
0
629
-491
-58
125
85
41
-61
30
80
Exhibit 13 Perez Companc Projected Balance Sheet (in $ millions unless otherwise stated)
As of December, 31
1999A
2000A
2001A
2002E
2003E
2004E
2005E
254
641
147
1,042
274
627
170
1,071
581
566
156
1,303
485
453
113
1,051
655
491
123
1,269
691
518
130
1,339
616
579
145
1,340
50
77
1,194
2,661
9
3,991
5,033
77
93
1,251
2,990
5
4,416
5,487
96
97
1,126
3,550
8
4,877
6,180
76
63
357
2,310
8
2,814
3,865
82
68
395
2,071
8
2,624
3,894
86
72
435
1,922
9
2,524
3,863
97
80
477
1,942
9
2,605
3,944
180
305
159
644
249
739
141
10,129
318
1,269
269
1,856
239
1,274
217
1,730
260
1,279
234
1,773
274
1,284
247
1,805
306
1,289
276
1,871
1,612
204
1,816
2,460
17
2,556
5,033
1,410
172
1,582
2,711
68
2,708
5,487
1,403
114
1,517
3,373
71
2,736
6,180
1,003
77
1,080
2,810
75
980
3,865
1,003
83
1,086
2,860
79
955
3,894
903
88
991
2,796
83
984
3,863
803
98
901
2,772
87
1,085
3,944
1999A
2000A
2001A
2002E
2003E
2004E
2005E
37%
42%
45%
41%
38%
33%
37%
46%
42%
39%
33%
36%
50%
48%
42%
49%
52%
71%
67%
62%
49%
53%
71%
67%
59%
46%
50%
70%
65%
56%
40%
45%
67%
62%
54%
3.28
7.20%
3.47
9.20%
3.51
5.80%
1.26
1.80%
1.23
8.40%
1.26
13.30%
1.39
19.20%
1,917
1,663
2,149
1,875
2,672
2,091
2,277
1,792
2,282
1,627
2,187
1,496
2,092
1,476
ASSETS
Current Assets
Cash and cash equivalent
Accounts receivable
Inventories
Total current assets
Non current Assets
Accounts receivable
Inventories
Investments
Fixed assets
Others
Total non-current assets
Total Assets
LIABILITIES AND
STOCKHOLDERS EQUITY
Current liabilities
Accounts payable
Short-term debt
Other current liabilities
Total current liabilities
Non-current liabilities
Long-term debt
Other liabilities
Total non-current liabilities
Total Liabilities
Minority Interests
Total Stockholders Equity
Total Liabilities & Equity
Source: Adapted by casewriter from Frank J. McGann and Marcus Sequeira, Perez Companc - Can it weather the storm? Merrill Lynch, June 3, 2002, pg
2006E
2007E
622
679
170
1,471
693
755
189
1,637
113
95
521
1,964
9
2,702
4,173
126
105
567
2,026
9
2,833
4,470
359
1,294
324
1,977
399
1,299
360
2,058
703
115
818
2,795
91
1,287
4,173
603
128
731
2,789
95
1,586
4,470
2006E
2007E
33%
39%
62%
57%
48%
26%
32%
56%
51%
40%
1.65
25.20%
2.03
24.90%
1,997
1,375
1,902
1,209
Exhibit 14 Perez Companc Consolidated Earnings Model (in $ millions unless otherwise stated)
1999A
2000A
2001A
2002E
2003E
2004E
Sales
589
719
891
674
784
829
96
100
125
120
119
125
10
19
30
26
22
25
23
15
17
16
14
16
16
40
45
42
20
24
27
Adjustments/Eliminations
-2
-3
-6
-6
-7
-7
543
140
8
59
-99
1,240
717
158
35
56
-139
1,546
750
164
38
49
-238
1,654
460
70
19
28
-95
1,155
539
96
21
31
-105
1,366
559
110
23
34
-115
1,440
189
21
80
56
10
-44
312
521
-134
178
-8
5
175
130
0
33
338
246
65
93
56
4
-62
402
633
-157
260
-15
-10
235
41
0
0
283
266
35
99
47
9
-70
386
716
-206
175
-14
-10
151
-55
0
0
102
201
11
29
8
35
-25
259
541
-220
39
-10
-5
26
26
-514
0
-463
279
24
32
3
25
-27
335
619
-230
105
-19
-6
81
0
-66
0
15
313
42
42
3
26
-29
397
696
-225
172
-40
-8
129
0
-55
0
74
Source: Adapted by casewriter from Frank J. McGann and Marcus Sequeira, Perez Companc - Can it weather the storm? Merrill Lynch, pg. 16, 17, and 29.
2005E
2006E
2007E
927
1,115
1,284
134
158
176
10
11
11
24
24
25
17
17
18
29
30
32
-8
-9
-10
591
155
25
37
-127
1,608
625
217
28
41
-139
1,887
662
229
31
45
-153
2,097
362
47
57
3
28
-31
466
799
-195
271
-69
-10
198
0
-49
0
149
447
49
82
3
29
-33
578
912
-165
414
-111
-13
297
0
-44
0
255
524
52
86
4
31
-35
662
995
-165
497
-135
-15
358
0
0
0
358
Proven Reserves
Oil (million bbl)
Gas (billion cubic meters)
Combined (million boe)
Production
Oil (thousand barrels per day)
Gas (million cubic meter per day)
Combined (thousand boe per day)
Downstream
International Refining Capacity (thousand bpd)
Gas Stations in Argentina
Gas Transportation Lines (kilometers)
Petrobras
Pecom
Pro Forma
7,749
253
9,257
739
46
1,010
8,488
299
10,267
1,379
36
1,596
125
10
181
1,504
46
1,777
91
707
7,500
124
128
7,000
155
835
14,500
Source: Adapted by casewriter from, Perez Companc Acquisition Overview, PowerPoint Presentation, July 2002. Petrobras S.A, Investor Relations.
Petrobras
Pecom
Pro Forma
37,119
14,016
12,656
6,445
7,571
3,446
2,330
700
236
2,094
40,565
16,346
13,066
5,926
10,420
22,724
8,544
2,883
4,629
1,555
689
-392
747
24,279
9,233
2,653
5,376
Source: Adapted by casewriter from, Perez Companc Acquisition Overview, PowerPoint Presentation, July 2002. Petrobras S.A, Investor Relations.
Exhibit 18 Market Valuation Indicators (as of March 28, 2002, unless noted otherwise)
Beta 1 Year
Beta 3 Years
Market price
Petrobras
0.69
(PBR)
0.94
$26.47
Pecom
0.77
(PC)
0.87
$8.12
Brazilian Sovereign
Risk (bps) Sovereign
Argentine
Risk
(bps)10 Years
Treasury
Treasury 30 Years
Market Indicators
718
5,013
5.40%
5.80%
Source: Adapted by casewriter from Rodrigo Lopes <[email protected]>, Dados Relatorio Petrobras, to Ricardo Reisen de Pinho <rreisen@hb
to Ricardo Reisen de Pinho <[email protected]>, March 7, 2003, and March 13, 2003.
Exhibit 21 Valuation Tables for Selected Companies (as of March 28, 2002)
Company
Ticker
Price
(US$)
Market Cap
EV
Reserves
EV
EBITDA
2002
2001A
2002E
Supermajors
BP
Chevron Texaco a
Exxon Mobil
Royal Dutch
Shell Transport
Total Fina Elf
Weighted Average b
Majors
Occidental
Murphy
BG
ENI
Norsk Hydro
Conoco Phillips
Repsol YPF
Statoil
Weighted Average b
Emerging Oils
Lukoil
MOL
Sibneft
Yukos
Surgut
PetroChina
Sinopec
PKN
Weighted Average b
Petrobras
Overall Weighted Average
BP
CVX
XOM
RD
SC
TOT
53.1
90.3
43.8
54.3
44.3
76.6
198
98.8
294.9
113.1
71.3
101.8
10.4
7
11.5
4.8
3.3
9.1
9
6.9
5.1
7.1
4.9
4.9
5.7
6.2
8.1
5.9
8.9
5.4
5.5
5.9
7.3
OXY
MUR
BRG
E
NHY
COP
REP
STO
29.2
48.8
22.3
72.1
47.9
62.8
12.7
7.8
10.9
2.2
15.7
57.6
12.3
42.6
15.5
17.1
6.8
6.9
10
9.4
6.9
16.6
4.7
5
9.3
4.8
3.6
14.2
7
4.3
8.6
6.6
4.5
7
5.7
6.3
14.6
4.9
3
10.4
3.1
2.5
6.3
LUKOY
MOLHB
SBKYY
YUKOY
SNGSRU
PTR
SNP
PKNPW
59
4,950.00
17
124
11.4
20.9
16.2
18.7
11.1
1.7
8
18.4
13
3.6
0.3
1.9
3.8
8.5
6.3
5.2
2.9
3.2
8.4
5.6
4.8
4.5
NA
7
5.2
2.6
3.1
8.7
5.8
4.9
PBR
26.5
28.7
1.1
NA
3.4
2.2
1.2
2.6
7.6
NA
3,2
2.9
6.1
2.8
5.2
3.1
5.4
Source: Compiled and adapted from Alexandra Strommer, Muscle and Brains, J.P. Morgan Securities Inc., July 16, 2002, p. 14, and from Rodrigo Lopes
a
Proven reserves for Chevron Texaco is the sum of the individual proven reserves reported by both Chevron and Texaco
Weighted average by market capitalization
EV
ITDA
EV
Debt Adjusted Cash Flow
Price
Cash Flow
2003E
2001A
2002E
2003E
2001A
2002E
2003E
6.2
5
7.7
4.7
4.8
5
6.1
9
7
9.2
6.7
6.9
6.9
8.1
8.3
7.3
11.4
7.8
7.9
7.3
9
7.1
6.3
9.6
6.8
6.9
6.5
7.7
10.2
7.3
7.3
6.3
6.3
5.5
9.1
10.9
9.3
6.8
7.6
6.4
6.9
7.7
6.5
7.2
6.6
6.1
8.3
8.4
7.4
4.8
3.9
9
4.7
3.3
5
3.7
2.6
4.6
5.2
3.7
18.6
8.1
17.7
16.3
5.2
2.2
9.8
6.2
5
14.2
8.3
16.9
19.8
5.4
2.9
10.6
5.3
3.7
11.7
6.8
14.7
10.9
5.5
2.3
7.8
4.1
4.4
2.8
3.4
2.4
20.9
7.6
6.2
5.3
5.4
4.9
3.9
3.7
2.7
6.9
5.1
3.1
4.5
3.8
3.8
5.3
4.1
5.6
5.7
4.7
3
NA
5
3.8
2.4
2.8
6.3
4.1
3.8
4.6
8.9
6.8
6.2
NA
4.4
5.5
6
4.8
5.4
NA
7.6
6.8
NA
4.2
5.5
6.3
5
3.6
NA
5.9
5
NA
3.8
4.6
4.6
3.9
3.8
4.5
6.8
NA
NA
6.5
7.4
5.7
6.6
5.2
5.1
4.6
4.1
3.5
3.4
3.2
3.2
3.2
2.7
4.7
4.9
3.5
4.6
4.7
3.8
2.8
4.3
3.7
6.6
3.6
7.1
4.3
5.9
2.5
2.2
2.6
5.3
5.3
4.6
uly 16, 2002, p. 14, and from Rodrigo Lopes <[email protected]>, Dados Relatorio Petrobras, to Ricardo Reisen de Pinho <[email protected]>, March 7, 2003, an
Price
Earnings
2001A
2002E
2003E
13
15.7
10.9
10
13
10.3
15.2
20.7
15.6
12
13.7
10.6
12.2
14.1
10.8
14
14.5
11.5
13.4
16.6
12.5
8.5
11.8
9.9
7.7
21.2
6.7
20.9
9.7
5.3
5.4
4.9
3.9
3.7
2.7
8.8
14.5
10.2
3.1
4.5
3.8
3.8
5.3
4.1
7.3
8.9
6.7
6.1
3.5
21.3
NA
NA
31.9
48.7
33
14.7
17.5
13.5
209.2
189.3
170.4
6.4
6.2
5.6
7.7
8.7
6.1
25.3
18.5
7.6
31.9
31.7
26.4
3.6
4.3
3.8
14
15.4
12.3