Petrobras (PETR4) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 reached R$35.3 billion (US$6.0 billion), up from R$23.8 billion in Q1 2024, driven by higher sales revenues, improved financial results, and strong operational performance.

• Total oil and natural gas production reached 2.77 million boe/d, up 5.4% sequentially, supported by new FPSO start-ups and discoveries in key basins.

• Operational milestones included the start-up of FPSO Almirante Tamandaré in Búzios, completion of Train 1 revamp at RNEST, and expansion in the Brazilian equatorial margin.

• New export contracts and first sales of low-carbon products, including VLSFO with 24% renewable content in Asia, highlight market expansion and sustainability efforts.

• Interim dividends and interest on capital totaling R$11.7 billion were approved, with significant tax contributions and new partnerships for Amazon carbon credits.

Financial highlights

• Adjusted EBITDA (excluding one-off events) reached US$10.7 billion, up 8% from Q4 2024; operating cash flow was US$8.5 billion, up 4% sequentially.

• Net income excluding FX effects was US$4.0 billion, a 31% increase over the previous quarter; free cash flow grew 20% to US$4.5 billion.

• Gross profit was US$10.4 billion, up 4.1% sequentially; sales revenues were US$21.1 billion, up 1.2% from Q4 2024.

• Capex totaled US$4.1 billion, 29% lower than Q4 2024 but 34% higher year-over-year, focused on pre-salt projects.

• R$11.7 billion in dividends declared; R$65.7 billion paid in taxes during Q1 2025.

Outlook and guidance

• Maintaining CapEx guidance at BRL 18.5 billion for 2025, with no plans to exceed this level; 1Q25 investments represented 22% of annual guidance.

• Projects are resilient to Brent prices as low as $45/bbl, with an average E&P portfolio break-even at $28/bbl.

• Business plan emphasizes high-return investments, operational efficiency, and capital discipline, even in low Brent price scenarios.