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, new rigs and platforms (including early start-up of FPSO P-79) came 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.

• Significant operational milestones included new FPSO procurements, new acreage in Africa, and new oil and gas discoveries.

Financial highlights

• Adjusted EBITDA excluding one-off items: $11.7 billion (BRL 11.7 billion), up 10.2% year-over-year, driven by higher production volumes.

• Net income excluding one-off items: $4.5 billion; net income attributable to shareholders: $6.2 billion, with one-off events boosting results.

• Operating cash flow: $8.4 billion in Q1; free cash flow: $3.9 billion.

• Gross debt at $71.2 billion, with a target to reduce to $65 billion by 2030; net debt at $62.1 billion.

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

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.

• CapEx flexibility allows for acceleration of value-creating projects as market conditions improve; 2026 CapEx projected at $16.9 billion.

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

• Monitoring external factors for potential impacts on prices and costs, including new tax reforms and regulatory changes.