Petrobras (PETR4) Q2 2025 earnings summary

Executive summary

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

• Major milestones included the early start of FPSO Alexandre de Gusmão, new discoveries in the Santos Basin pre-salt, and advances in operational excellence and emissions reduction.

• Investments targeted refining, gas processing, and sustainability, with significant progress in ESG and technological innovation.

• Focus remained on profitable, efficient projects and capital discipline amid volatile oil prices.

• New gas contracts increased free market volumes by 170% in 1H25.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $10.2 billion, down 4% from Q1 2025; net income excluding one-off events was $4.1 billion, while net income attributable to shareholders was $4.7 billion.

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

• CAPEX reached $4.4 billion in Q2, totaling $8.5 billion year-to-date, with a 9% year-over-year increase.

• Dividends for Q2 2025 totaled BRL 8.7 billion (BRL 0.67/share), to be paid in two installments.

• Gross debt rose to $68.1 billion, up 5.5% from Q1 2025; net debt reached $58.6 billion.

Outlook and guidance

• 2025 oil and gas production is expected at the upper end of the target range, with new FPSOs supporting growth.

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

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

• Búzios P-78 is expected to start production in 4Q25, with accelerated ramp-up of new FPSOs.

• Ongoing investments in refining and gas infrastructure to enhance operational flexibility and product mix.