Our 2018-2022 Business and Management Plan is based on the two main top-level metrics, safety and financial, as already set forth under the 2017-2021 BMP, which continue guiding the company’s strategic actions. The safety metric was anticipated in two years: The Reportable Accident Rate (RAR) per million man-hours limit was reduced from 1.4 to 1.0 in 2018, and the financial leverage goal was maintained: Net debt/adjusted EBITDA of 2.5 in 2018.
Two main metrics, the safety and financial ones, guide the company’s strategy:
Five fundamental principles define what we want to be and make up our vision:
An integrated energy company focusing on oil and gas that evolves with society, generating high value and with a unique technical ability.
We have a Strategic Monitoring process, based on the Strategic Plan released in September 2016, which consists of the permanent assessment of the business environment and the implementation of the plan, allowing for adjustments to be made in a more agile, efficient manner.
This monitoring was based on the vision and promoted adjustments to the set of strategies. Three new themes were incorporated: Transition to a low carbon economy; preparation of the company to seize opportunities created by digital transformation, and optimization of the company’s financial and risk management, resulting in a total of 20 strategies:
- Reduce Petrobras’ risk, adding value in E&P, Refining, Transportation, Logistics, Distribution and Sales by active portfolio management through partnerships, acquisitions and divestments.
- Restructure the Electric Energy business, seeking the alternative that maximizes value for the company.
Energy, with focus on oil and gas
- Manage the exploratory portfolio in order to maximize cost effectiveness and ensure the sustainability of oil and gas production.
- Manage the E&P portfolio projects in an integrated manner.
- Optimize the business portfolio, withdrawing entirely from biofuel production, NGL distribution, fertilizers production and petrochemical interests, preserving technological competencies in areas with development potential.
- Maximize value creation in the gas chain as a fuel of transition to the long term.
Evolves with the society
- Strengthen internal controls and governance, ensuring transparency and an effective system for preventing and combating irregularities, without prejudice to the agility in the decision- making process.
- Recover Petrobras’ credibility and strengthen its relation and reputation with all its stakeholders, including control and supervisory bodies of the company, maintaining a transparent, respectful and proactive dialogue.
- Prepare the company for a future based on a low carbon economy.
- Capture the opportunities created by digital transformation, applying new technologies to the company’s
processes and/or generating new processes or new businesses, focusing on the aggregation of value.
Company determined to create value
- Ensure disciplined use of capital and return to shareholders in all Petrobras projects, with high reliability and predictability in the delivery.
- Continuously maximize the productivity and the reduction of costs in accordance with the best international practices.
- Manage the process of contracting goods and services with a focus on value, aligned with international standards and metrics, meeting conformity requirements, maintaining flexibility in adverse and volatile demand scenarios and contributing to the development of the chain as a whole.
- Promote the management of our workforce in an environment of participatory culture and mutual trust, focused on results that add value, with safety, ethical conduct, responsibility, encouragement of argument, meritocracy, simplicity and conformity.
- Strengthen the reservoir management to maximize the value of E&P contracts in all the regulatory regimes, seeking opportunities to continuously incorporate reserves.
- Promote a market price policy and maximize margins in the value chain.
- Optimize the financial and risk management of the company.
- Ensure the constant development of technological competencies in areas with development potential, strengthening the performance of the current business.
- Prioritize the development of deepwater production, acting primarily in strategic partnerships, bringing together technical and technological expertise.
- Enable the conception and implementation of projects with a low oil equilibrium price, with safety and compliance with environmental requirements.
Four pillars guide our path toward the recovery of our financial health:
- Partnerships and Divestments: Advantages such as risk sharing, decreasing investment costs, technological exchanges, and strengthening of governance
- Competitive Prices: Maximize revenues keeping pace with the international market
- Capex Efficiency: Capital discipline in investments
- Opex Efficiency: Reduction of operating costs