Brava Energia (BRAV3) Q2 2026 earnings summary

Executive summary

• Achieved record revenue of $712 million (US) and R$3,598 million (BRL) in Q2 2026, up 15% quarter-on-quarter and 14% year-over-year, driven by higher sales volumes, improved pricing, and strong downstream margins.

• Adjusted EBITDA reached $351 million (US) and R$1,774 million (BRL), up 33% year-over-year, with margin expanding to 49.3%.

• Net income for 2Q26 was R$871 million, reversing the prior quarter's loss, supported by higher Brent prices and downstream margin expansion.

• Average daily production reached 82,000 boe/d, up 8% sequentially, with significant contributions from offshore assets and recovery in the Potiguar Basin.

• Fifth consecutive quarter of net debt reduction, with leverage ratio at 1.97x and cash position of $965 million (US).

Financial highlights

• Net revenues of $712 million (US) and R$3,598 million (BRL) in 2Q26, up 15% QoQ and 14% YoY; adjusted EBITDA of $351 million (US) and R$1,774 million (BRL), margin 49.3%.

• Net income: R$871 million in 2Q26, compared to a loss in 1Q26.

• Lifting cost averaged US$16.3/boe (+15% QoQ), with onshore at US$20.9/boe and offshore at US$14.0/boe.

• Cash and cash equivalents: R$4,995 million; net debt: R$7,378 million (-2% QoQ, -17% YoY).

• Capex: $151 million (US) and R$765 million (BRL) in 2Q26, with 74% allocated to offshore drilling.

Outlook and guidance

• Offshore drilling campaign progressing on schedule, with new wells at Papa-Terra expected online in 4Q26 and Atlanta in 1H27.

• CapEx expected to remain at Q2 levels through Q1 2027, then normalize as drilling concludes.

• Anticipates stronger cash generation in 2027 due to lower CapEx and increased production from new wells.

• Continued focus on operational efficiency, capital discipline, and sustainable value creation.

• Conservative approach to export tax, modeling its continuation through 2027 due to regulatory uncertainty.