Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 138

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 138
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 our finance debt.
 Exchange rate fluctuations may affect the results of variables such as the following:
 
–                                             Margins:                                         
      The relative pace at which our total revenues and expenses in reais increase or decrease 
      as a result of exchange rate fluctuations, and its impact on our margins, is affected by 
     our pricing policy in Brazil. Absent changes in the international prices of crude oil, oil
     products and natural gas, when the real appreciates against the U.S. dollar, and we do not
    adjust our prices in Brazil, our margins increase. On the other hand, absent changes in the
     international prices of crude oil, oil products and natural gas, when the real depreciates
    against the U.S. dollar and we do not adjust our prices in Brazil, our margins decline. For
         further information on our prices and our pricing policies, see “Sales Volumes and    
                                      Prices” in this section.                                 
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–                                                 Debt                                             
         service: The depreciation of the real against the U.S. dollar also increases our debt     
       service expenses in reais, as the amount of reais necessary to pay principal and interest   
     on foreign currency debt increases with the depreciation of the real. As our debt denominated 
    in other currencies increases, the negative impact of a depreciation of the real on our results
       and net income when expressed in reais also increases, thereby reducing earnings available  
                                           for distribution.                                       
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–                                              Retained                                          
         earnings available for distribution: Exchange rate variation also affects the amount    
    of retained earnings available for distribution by us when expressed in U.S. dollars. Amounts
      reported as available for distribution in our statutory accounting records are calculated  
       in reais and prepared in accordance with IFRS Accounting Standards. They may increase or  
      decrease when expressed in U.S. dollars as the real appreciates or depreciates against the 
                                             U.S. dollar.                                        
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 We designated hedging relationships to account for the effects of the existing hedge between a foreign exchange gain or loss from portions of our long-term debt obligations (denominated in U.S. dollars) and foreign exchange gain or loss of our highly probable U.S. dollar denominated future export revenues, so that gains or losses associated with the hedged transaction (the highly probable future exports) and the hedging instrument (debt obligations) are recognized in the statement of income in the same periods.

Annual Report and Form