Company: PBR
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001292814-25-001352
Chunk: 137

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-04-03
Form: 20-F
Item: Item 17
Chunk 137
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. dollar as our presentation currency in this annual report to facilitate the comparison with other oil and gas companies. We have used criteria set forth in IAS 21 – “The effects of changes in foreign exchange rates” to translate the consolidated financial statements from reais into U.S. dollars. Based on IAS 21, we have translated (i) all assets and liabilities into U.S. dollars at the exchange rate as of the date of the statement of financial position; (ii) all accounts in the statements of income, other comprehensive income and cash flows using the average exchange rates prevailing during the relevant period and (iii) equity items at the exchange rates prevailing at the respective transactions dates.
 For more information regarding our functional and presentation currency, see “About Us” and Note 2.2 to our consolidated financial statements.
 

Annual Report and Form 20-F 2024 |
EXCHANGE AND INFLATION RATES
 
                      2024                          2023    2022
----------------------------------------------------------------
Year-end                                    6.19    4.84    5.22
exchange rate (reais/US$)                                       
Appreciation                             (27.9%)    7.3%    6.5%
(depreciation) during the year(1)                               
Average                                     5.39    5.00    5.16
exchange rate for the year (reais/US$)                          
Appreciation                              (7.9%)    3.1%    4.3%
(depreciation) during the year(2)                               
IPCA                                       4.83%   4.62%   5.79%
 (1) Based on year-end exchange rate.
 (2) Based on average exchange rate for the year.
 
From January 1, 2025 to April 2, 2025, the real appreciated 8.1% against the U.S. dollar.
 Most of our export revenues are denominated in U.S. dollars and our domestic sales are also indirectly linked to the U.S. dollar due to our current policy to generally seek to maintain parity with international product price. Therefore, the depreciation of the real is generally favorable to our operating income as the positive impact in revenues is higher than the negative impact on operating costs, the majority of which are denominated in Brazilian reais.
 On the other hand, the depreciation of the real against the U.S. dollar results in a loss due to the exchange rate variation of