Petrobras (PETR4) Q1 2026 earnings summary

Executive summary

• Achieved record operational and financial results in Q1 2026, with total operated production of 4.65 million boed and pre-salt own production of 2.66 million boed, driven by capacity expansion, high pre-salt productivity, and refinery modernization.

• Production reached 2.58 million barrels/day in Q1 and 2.73 million in April, a 30% increase from 2024.

• Major investments in E&P, including new rigs, FPSOs, and platforms coming online ahead of schedule, supporting future growth.

• Strategic focus on self-sufficiency in diesel and gasoline, aiming to supply 100% of Brazil's demand by 2030.

• Nine power plants contracted under the 2026 Power Capacity Reserve Auction, securing R$44 billion in fixed revenue over 2026–2031.

Financial highlights

• Adjusted EBITDA excluding one-off items reached $11.7 billion in Q1 2026, up 10.2% year-over-year, driven by higher production volumes.

• Net income excluding one-off items was $4.5 billion; operating cash flow reached $8.4 billion in Q1.

• Gross debt stood at $71.2 billion, with a target to reduce to $65 billion by 2030.

• Q1 tax payments totaled BRL 72.4 billion, including federal, state, municipal taxes, and royalties.

• Sales revenues were $23.5 billion, up 11.7% year-over-year.

Outlook and guidance

• Maintaining 2026/2030 plan targets, with oil production at the upper range of guidance and expected at 2.6 MMbpd in 2026.

• Expecting higher revenues in Q2 as Brent price increases and export backlogs are monetized.

• Cash CAPEX for 2026 projected at $16.9 billion, a 5% increase over previous guidance.

• CapEx flexibility allows for acceleration of value-creating projects as market conditions improve.

• No extraordinary dividends expected in 2026; priority is investment and debt reduction.