Brava Energia (BRAV3) Q1 2026 earnings summary

Executive summary

• Achieved record net revenue of $596 million and adjusted EBITDA of $310 million in Q1 2026, more than doubling quarter-over-quarter, driven by operational improvements, efficiency gains, and higher oil prices.

• Production reached 80,000 barrels of oil equivalent per day in April, up 5% from Q1 2026, marking the best month of 2026 so far.

• Offshore segment delivered robust performance, with a margin of 68% and significant cost reductions, especially at Atlanta and Papa-Terra.

• Maintained capital discipline, positive free cash flow, and delivered the fourth consecutive quarter of deleveraging, reducing net debt/EBITDA to 1.8x.

• Dividend payment of R$57.4 million made on April 30, 2026.

Financial highlights

• Net revenue reached a record $596 million (R$3,135 million), up 9% YoY and 23% QoQ, reflecting improved monetization and efficiency.

• Adjusted EBITDA hit $310 million (R$1,628 million) with a consolidated margin of nearly 52%; offshore segment margin was close to 68%.

• Offshore lifting costs dropped to $10.8 per barrel, among the lowest in recent history; total lifting cost at $14.2/boe.

• CapEx reduced by 57% YoY and 33% sequentially, reflecting a shift from project implementation to cash capture.

• Ended the quarter with $1.08 billion in cash and improved leverage from 3.4x to 1.8x net debt/EBITDA year-over-year.

Outlook and guidance

• 2026 is positioned as a year of operational stabilization and value expansion, with focus on production stability, continued deleveraging, and disciplined execution of the offshore campaign.

• Anticipates further reduction in lifting costs, especially at Papa-Terra, targeting $13 per barrel in 2027.

• Expects improved pricing and higher volumes in Q2 2026, particularly from BC-10 and Atlanta fields.

• Brava Eficiente program to drive further contract optimization and cost reduction.

• Gradual resumption of onshore production and capacity expansion from ongoing offshore drilling campaigns.