Petrobras (PETR4) Q2 2025 earnings summary

Executive summary

• Oil and natural gas production increased by 5% in Q2 2025, reaching record levels, with new platforms and efficiency gains offsetting a 10% decline in Brent crude prices.

• Major milestones included the early start-up of FPSO Alexandre de Gusmão, new discoveries in the Santos Basin pre-salt, and investments in refining, gas processing, and sustainability initiatives.

• Net income for H1 2025 reached R$62.1 billion, driven by improved finance income and lower expenses, while net income excluding one-off events was $4.1 billion in Q2 2025.

• Dividend distribution of BRL 8.7 billion (BRL 0.67/share) was approved for Q2 2025.

• Focus remains on profitable, efficient projects, capital discipline, and maintaining robust liquidity amid volatile oil prices.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $10.2 billion, down 4% from Q1 2025; net income was $7.5 billion, down 11% sequentially.

• Operating cash flow was $7.5 billion in Q2 2025, with free cash flow at $3.4 billion.

• CAPEX reached $4.4 billion in Q2, totaling $8.5 billion year-to-date, on track with the $18.5 billion annual guidance.

• Sales revenues for H1 2025 were R$242.3 billion, with gross profit at R$117.4 billion.

• Gross debt stood at $68.1 billion and net debt at $58.6 billion as of June 2025.

Outlook and guidance

• 2025 oil and gas production is expected at the upper end of the target range, with continued ramp-up of new FPSOs and production systems.

• No plans to exceed current CAPEX guidance; all major contracts for 2025 and part of 2026 are already signed.

• Strategic plan for 2026-2030 will reassess project feasibility and may postpone or optimize projects if oil prices remain low.