1

P53

FPSO Cidade de Niter ói P51

ALMIR GUILHERME BARBASSA CFO and Investor Relations Officer

March, 10th 2009

4th Quarter and Fiscal Year 2008 (Brazilian Corporate Law)

Conference Call / Webcast

RESULTS ANNOUNCEMENT

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The presentation may contain forecasts about future events. Such forecasts merely reflect the

expectations of the Company's management. Such terms as "anticipate", "believe", "expect",

"forecast", "intend", "plan", "project", "seek", "should", along with similar or analogous expressions, are

used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether

foreseen or not by the Company. Therefore, the future results of operations may differ from current

expectations, and readers must not base their expectations exclusively on the information presented

herein. The Company is not obliged to update the presentation/such forecasts in light of newinformation or future developments.

CAUTIONARY STATEMENT FOR US INVESTORS

The United States Securities and Exchange Commission permits oil and gas companies, in their filings

with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or

conclusive formation tests to be economically and legally producible under existing economic and

operating conditions. We use certain terms in this presentation, such as oil and gas resources, thatthe SEC’s guidelines strictly prohibit us from including in filings with the SEC.

DisclaimerDisclaimer

1782 1865 1883

277 330 330

Oil and NGL Natural Gas

3

NATIONAL PRODUCTION OF OIL, NGL & NATURAL GAS – 4Q08 VS 3Q08

Tho

us. b

pdOil and Natural Gas Average Domestic

Production

Record daily production of oil in Brazil (03.04.200 9) 2,012,654 barrels

2,213 2,195

-1%2,059

4Q07 3Q08 4Q08

• Slight decrease in the 4Q08 production due to:

• Natural decline in mature fields;

• Operating Stoppages.

• Partially offset by increase in production of new s ystems P-52 and P-54 (Roncador) and P-53 (Marlim Leste).

3

4

PLATFORM / FIELD

CAPACITY FIRST OILCURRENT

PRODUCTION* (bpd)

INTERCONNECTEDWELLS

EXPECTEDWELLS

P-51 / Marlim Sul 180 thousand bpd 01/24/2009 45,9092 producers and 1

injector10 producers e

9 injectors

P-53 / Marlim Leste

180 thousand bpd 11/30/2008 48,375 3 producers13 producers

and 8 injectors

FPSO Cidade de Niterói / /Marlim Leste

100 thousand bpd 02/26/2009 32,940 1 producer9 producers

(oil) e 1 producer (gas)

Total 460 thousand bpd - 127,224

NEW PRODUCTION SYSTEMS STATUS

P-51 P-53 FPSO Cidade de Niterói

* In 03/02/09

5

UPDATE ON SANTOS BASIN PRE SALT

Rio de Janeiro50 km

Tupi

Carioca

ParatiIara

GuaraBM-S-21BR 80% BM-S-24

BR 80%

BM-S-10BR 65% BM-S-11

BR 65%

BM-S-9BR 45%

BM-S-8BR 66%

BM-S-22BR 20%

Azulão

Bem-te-vi

Caramba

5

Drilled Wells

Drilling Plan 2009:

Status Tupi EWT:

• 9 wells, being 8 exploratory and 1 producing

• FPSO BW Cidade de São Vicente in transit to Brazil;

• Well 3-RJS-646 (south of Tupi), in process of completion and evaluation. Formation tests show good results;

• Production start-up expected for 2Q09.

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47.9547.79

57.0464.42

76.75

86.13

105.46100.58

96.90114.78

121.37

88.69

74.8768.76

57.7554.91

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08

Average Sales Price Brent (average)

Avg. 3Q08

Avg. 4Q08

• In the 4Q08, decrease in Brent and Petrobras’ oil p rices surpassed 50% when compared to the previous quarter;

• Spread between domestic oil average sales price and Brent decreased from US$ 14.20/bbl in the 3Q08, to US$ 6.96/bbl in the 4Q08.

E&P OIL PRICES (US$ per barrel)

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LIFTING COST IN BRAZIL

15.22 15.16 16.34 17.61 19.09

25.76 28.0434.80 36.79

22.39

0

10

20

30

40

50

60

70

80

4Q07 1Q08 2Q08 3Q08 4Q08

Lifting Cost (R$) Gov Take (R$)

8.60 8.66 9.88 10.21 8.24

14.56 16.1621.20 20.06

9.87

114.8

54.9

121.4

96.988.7

0

10

20

30

40

50

60

70

80

4Q07 1Q08 2Q08 3Q08 4Q08

0

20

40

60

80

100

120

140

Lifting Cost (US$) Gov. Take (US$) Brent

US$/barrel R$/barrel

23.16 24.82

31.0830.27

18.11

40.9843.20

51.1454.40

41.48

� 19% decrease in US$ lifting costs without government take fr om the 3Q08 to the 4Q08;

� In reais, lifting cost without government take increased du e to real devaluation;

� Decrease in government take due to lower domestic oil refere nce prices.

8

AVERAGE REALIZATION PRICES – ARP

8

US$/bbl R$/bbl

3Q08 4Q08Average 2008ARP USA: US$ 109.72/bbl

ARP Petrobras: US$ 91.81/bbl

3Q08 4Q08Average 2008ARP USA: R$ 194.73bbl

ARP Petrobras: R$ 176.41/bbl

• Adjustment in diesel (15%) and gasoline (10%) on Ma y 2008 were not enough to reset parity with interna tional prices;

• Only in the 4Q08 Petrobras’ ARP reached the level o f international benchmarks;

• Decrease in ARP measured in Dollar due to Real deva luation. ARP’s curve is more stable when expressed in Reais.

0

20

40

60

80

100

120

140

160

dez/06 mar/07 jun/07 set/07 dez/07 mar/08 jun/08 set/08 dez/08

PMR EUA PMR PetrobrasARP USA ARP Petrobras

0

50

100

150

200

250

dez/06 mar/07 jun/07 set/07 dez/07 mar/08 jun/08 set/08 dez/08

PMR EUA PMR PetrobrasARP USA ARP Petrobras

129.81

112.49

77.40

71.78

176.48162.23

215.62

187.02

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Tho

usan

d ba

rrel

s/da

yOIL AND OIL PRODUCTS IMPORTS AND EXPORTS

353 390

102

160 97

51

Exports Imports Net Exports

615

538

77

Financial Surplus 2007US$ 71 Million

Financial Deficit 2008US$ 928 Million

� Despite surplus in volumes, a financial deficit in trade bal ance;

� Investments focused in capturing margins through increase in refining capacity of domestic crude.

439373

81

152

127

70

Exports Imports Net Exports

672

570

102

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• Lower exports’ revenues due to lower crude oil and oil products prices in international market;• Imports gains with lower oil prices are partly offs et by inventory costs – average cost methodology;• About 40% of oil products prices sold in domestic m arket are adjusted in the short term.

DieselGasoline

LPG

Naphtha and others

Expo rts c rude o il and o il pro ducts

Adjusted immediately

Adjusted short term

Adjusted long term

Oil ProductsCrude Oil Imports

Revenue Cost

DIFFERENCE IN TIMING BETWEEN REVENUES AND COSTS

Government Take

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OPERATING INCOME (EXTRAORDINARY ITENS)LAW 6.404/76

R$ Million

11

• Extraordinary Items affected operating results;

• Financial revenue from hedge of R$ 603 million in t he 4Q08 and R$ 156 million in the 3Q08.

4Q08 3Q08 Variation

Operating Income 5,041 10,852 (5,811)

- Losses with Devaluation of Inventories 1,089 293 796

- Inventory Turnover Effect (losses) 2,719 187 2,532

- Impairment 925 - 925

- Contractual charges and Fines 58 80 (22)

- Inventory Losses (Trading Operations) 964 762 202

Operating Income without Extraordinary

Items Effects10,796 12,174 1,378

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EXPLORATION AND PRODUCTION – CHANGE IN OPERATING INCOME (R$ MILLION – 4Q08 VS 3Q08)

Impairment

16,665 10,676

1,2681,253 603 29 7,936

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• Upstream results affected by lower oil prices;

• Impairment of R$ 603 million due to losses of econo mically viability in projects as oil prices went down (Brent prices fell 52% at 4Q08/3Q0 8);

• Costs reduction due to lower Government take.

3Q08 Oper.

Profit Price Effect on revenues

Net Volume Effect

on revenues

Net Cost Effecton average

COGS

Other Operational

expenses

4Q08 Oper.Profit

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DOWNSTREAM - CHANGE IN OPERATING INCOME (R$ MILLION – 4Q08 VS 3Q08)

13

3Q08Oper. Loss

Net Volume Effect

Loss with Inventory

Devaluation4Q08

Oper. Loss

(2,437)

5,798 7,394

141 161541 (1,402)

Price Effect in Revenue

Average Cost Effect in COGs

Other Oper. Expenses

• Downstream income affected by decrease in realizati on prices;

• By the retention of costs in inventories in the cur rent quarter and realization of inventories formed with higher costs in previous periods.

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GAS AND ENERGY - OPERATING INCOME CHANGE(R$ MILLION – 2008 VS 2007)

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Jan to Dec 2007Oper. Loss

Price Effect in Revenue

Volume Effect in Revenue

Average Cost Effect in COGs

Volume Effect in COGs

Operating Expenses

Jan to Dec 2008Oper. Loss

(1,624)

3,334

1,818105 (525)

1,956

4,190

• Increase in gross profit due to higher sales volume s (increase in energy and gas sales) and better margins due to the renewal of contracts with natura l gas distributors;

• Contractual charges and fines (R$ 434 million) in t he energy sector should decrease due to investments ;

• Positive EBITDA (R$ 236 million).

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INTERNATIONAL – OPERATING INCOME CHANGE (R$ MILLION – 2008 VS 2007)

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Jan to Dec 2007Oper. Loss

Price and Volume Effect in Revenue

Cost and Volume Effect in COGs

Losses with Inventory

DevaluationOther Oper. Expenses

• Operating result affected by losses with inventory devaluation (R$ 699 million);

• EBITDAx of R$ 1,080 million – exploratory expenses o f R$ 1,103 million, depreciation of R$ 1,758 million.

Jan to Dec 2008Oper. Loss

(106)

9,498 8,496

6991,078 (881)

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NET INCOME CHANGE – R$ MILLION – 4Q08 VS 3Q08

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Domestic Oil, NGL and Condensate Production (thous. bpd)1,883 1,865

10,852 4,198

1,014

2,959

429

3,511

1,089503 7,355

3Q08Net Income

4Q08Net Income

Employees Part.

Revenues COGs Oper. Expenses

Fin. Expenses and Equity

Income

Taxes Minority Interest

1,699Non-recurrent Expenses

Net Income affected by:• Decrease in realization prices of oil and oil produc ts;• Extraordinary Items, such as impairment, losses wit h inventory devaluation and inventory turnover;• Lower tax payments due to fiscal benefit resulting from the provisioning of interest on own capital;• Positive financial results due to real devaluation.

4Q08 3Q08 2008 2007

Cash Flow from Operational Activities

Net Income 7,355 10,852 32,988 21,512

Depreciation 11,632 10,696

Others 5,332 10,031

CFFO 15,279 13,013 49,952 42,239

Net Cash Used in Investment Activities

Capex (17,121) (13,461) (52,118) (41,405)

Others (1,138) (666) (1,307) (3,828)

Total Investments (18,259) (14,127) (53,425) (45,233)

Cash Flow Used in Financing Activities

Financing and Loans, Net 7,451 846 11,837 (3,948)

Dividends (26) (2) (6,213) (7,474)

Net Cash Flow Used in Financing Activities 7,425 844 5,624 (11,422)

Cash and Cash equivalents at the beginning of the period 10,776 11,046 13,071 27,829

Cash and Cash equivalents at the end of the period 15,222 10,776 15,222 13,071

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CASH FLOW

• 4Q08 Cash Flow reflects the 21% decrease in invento ries value, that affected negatively income and EBITDA, with no impact on cash;

• Pre-funding of 2009 needs was followed by increase in cash and cash equivalents.

2008 Cash Flow according to Law 11.638. 4Q08 CF wa s measured through an analysis based on the compari son of 2008 flow with the 9M08 (before the law adjustments ). 17

R$ Million

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R$ million 12/31/2008 * 12/31/2007 %

Short Term debt (1) 13,859 8,960 55%

Long Term Debt (1) 50,854 30,781 65%

Total Debt 64,713 39,741 63%

Cash and Cash Equivalents 15,889 13,071 22%

Net Debt (2) 48,824 26,670 83%

Capital Structure 50% 48% +2 pp

• Net debt increase was driven by real devaluation (a pproximately R$ 9.0 billion) and new debt issued in the international and domestic markets;

• Level of indebtedness (net debt/EBITDA) was 0.85 on Dec 31, 2008

21%

26%

21%

19%

21%

19%19%

16% 17%18%

25%

21%

18%

23%

27%27%27%

28%

12/31/2006 06/30/2007 12/31/2007 06/30/2008 31/12/2008*

Net Debt/Net Capt. ST debt/Total debt

US$ million 12/31/2008 * 12/31/2007 %

Total Debt 27,691 22,436 23%

*After adjustments of Law 11.638/07(1) Total debt - cash and cash equivalents

LEVERAGE

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CHANGES IN ACCOUNTING PRACTICES: LAW 11.638/07 VS 6.404/76 – 2008 (R$ MILLION)

• Law 11.638/07 altered and revoked certain provision s dealing with accounting matters in Law 6.404/76 (Corporate Law) aiming to align Brazilian accounting practices with international standards (IFRS).

R$ million

Item Law 6.404/76 Transaction Subvention Fin. Inst. Leas ing Law 11.638/07

Gross Sales 284,579 (18,085) 266,494

Cost of Goods Sold (157,499) 15,350 526 (141,623)

Gross Profit 74,685 (1,715) 526 73,495

Operating Expenses 29,081 1,024 557 (198) 153 (27,544)

Net Financial Expenses 4,021 508 200 (1,601) 3,128

Equity Balance Result (399) (475) (874)

Operating Profit 49,226 (659) 557 1 (922) 48,205

Net Income 33,915 (636) 557 (109) (740) 32,988

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PBR vs. AmexOil (until 03.04.09)

Petr4 vs. Ibovespa (until 03.04.09)

Source: Bloomberg

BUSINESS PLAN 2009-2013 WAS WELL RECEIVED

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112.49

81.88

70

80

90

100

110

120

130

12/31 1/6 1/12 1/16 1/22 1/28 2/3 2/9 2/13 2/19 2/25 3/3

Inde

x N

umbe

r= 1

00 in

12.

31.0

8

PBR US$ Amex Oil

Before BP 2009-2013

115.46

102.27

90

95

100

105

110

115

120

125

12/31 1/6 1/12 1/16 1/22 1/28 2/3 2/9 2/13 2/19 2/25 3/3

Inde

x N

umbe

r = 1

00 in

12.

31.0

8

PETR4 R$ IBOVESPA

Before BP 2009-2013

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For more information:Investor Relationswww.petrobras.com.br/ri+55 21 3224-1510petroinvest@petrobras.com.br