Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) Q1 2020 Earnings Conference Call - Final Transcript
May 15, 2020 • 10:00 am ET
Carla Dodsworth Albano Miller
Good morning, ladies and gentlemen. Welcome to Petrobras Webcast with Analysts and Investors about the First Quarter of 2020. We would like to inform you that all participants will follow the transmission by Internet as listeners. After introduction, Q&A session will begin. You can send us questions by email, email@example.com.
Today with us is Roberto Castello Branco [Technical Issue] Andre Barreto Chiarini, Chief Logistics Officer, Carlos Alberto Pereira de Oliveira, Chief Exploration and Production Officer; [Technical Issue] Chief Digital Transformation and Innovation Officer; Roberto Ardenghy, Chief Institutional Relations Officer; Rudimar Lorenzatto, Chief Production Development Officer, as well as other company's executives. The presentation will be available on our website.
And now, we will start with [Technical Issue] Petrobras CEO. Roberto, please you can begin.
Roberto da Cunha Castello Branco
Thank you, Carla. It's a pleasure to be here with you to exchange some ideas and to disclose some information about the company. The world is dealing with three shocks. On the one hand, we have the worst public health crisis since the Spanish Flu 100 years ago and a very-severe recession, very severe and synchronized recession. All lives and livelihoods are at risk.
At Petrobras, our number one priority is health; health of our employees and health of our company. To deal with the health threats, we launched several measures to protect our employees, including a massive testing. Up to today, we have tested 22.5% of all employees and using home offices, reducing personnel operations at a level -- an average level of 50% of the total labor force at operations.
In order to deal with the threats to our health, we are preserving our liquidity, have withdrawn, revolving credit facilities and increased our total cash holdings up to $15.7 billion. We cut capital expenditures by almost 30%, $3.5 billion and are pursuing a minimum reduction of our operating costs of $2 billion. We are developing several initiatives to do that.
We organized under a liquidity committee that interacts with all of operation areas of the company. They are the sentinels of our resilience and recovery, because we are now dealing with not only the short-term, but accelerating the execution of the strategy that was put in place back in January 2019 in order to emerge from this severe crisis as a strong company able to generate a lot of value to shareholders.
I said that, we are executing several deep cuts in capital expenditure and operating costs, but we are doing this given the preservation of the safety of the company and our commitment to sustainability. Petrobras is executing its good corporate citizenship, helping the Brazilian society to cope with the threats arising from the COVID-19 virus. We have donated PCR tests, 3 million liters of fuels and several other medical and materials to public hospitals. We're helping with our scientists and our high power computers to develop research related to the COVID-19 problem.
As I said, this such execution has been accelerated. Our commitment to maximize value through the increase in return of capital