Brava Energia (BRAV3) Q3 2026 earnings summary

Executive summary

• Q3 production reached 82.4 kboe/d, the highest quarterly level of 2026; adjusted EBITDA was R$1.584bn (US$308m) with a 46.8% margin, while lifting cost fell 18% QoQ to US$13.4/boe.

• Cash ended at R$4.791bn and leverage at 2.0x; a R$1.197bn non-cash oil-hedge mark-to-market expense contributed to a R$156m net loss.

• Ecopetrol integration began as offshore drilling advanced from Papa-Terra to Atlanta, where ATL-9H and ATL-10H are targeted to start production in 1H27.

Financial highlights

• Net revenue was R$3.388bn (US$660m), up 11% YoY in reais and 17% YoY in US dollars; 9M26 revenue rose 12% YoY to R$10.121bn.

• Adjusted EBITDA excluding IFRS 16 was R$1.584bn, up 22% YoY in reais; US-dollar adjusted EBITDA rose 29% YoY to US$308m. 9M26 adjusted EBITDA increased 35% to R$4.987bn.

• Net loss was R$156m versus net income of R$121m in 3Q25, primarily reflecting a R$1.406bn net financial expense driven by oil-hedge mark-to-market.

• Operating cash generation before oil-hedge settlements was R$1.133bn; R$403m of hedge cash outflows reduced operating cash flow to R$730m.

Outlook and guidance

• ATL-9H and ATL-10H are targeted to start production in 1H27; incremental output is expected to improve capacity utilization, fixed-cost dilution and cash generation.

• 2027 growth drivers include onshore recovery, Papa-Terra ramp-up, Atlanta's new wells and operational and commercial synergies from Ecopetrol integration.

• PPT-53 is ready to begin production subject to regulatory approval; PPT-52 came online September 29 and supported Papa-Terra's highest production since September 2020 in October.

• No additional offshore drilling beyond Atlanta wells 9 and 10 is expected in 2027; investment decisions for Atlanta and Papa-Terra are expected by year-end 2027.

• Management expects 2026 spending below plan and leverage to remain stable; final 2027 investment planning was still being defined.