Brazil’s state-controlled oil producer Petrobras reported first-quarter 2026 net income of 32.7 billion reais ($6.2 billion), down 7.2% from the same period last year despite record oil and gas production and strong refining performance.
The company said higher oil prices resulting from geopolitical tensions late in the quarter had not yet fully flowed through to earnings because many export cargoes are priced using prior-month benchmarks. Petrobras exports a significant share of its crude to Asian markets.
Adjusted EBITDA came in at 59.6 billion reais ($11.3 billion), while operating cash flow reached 44 billion reais ($8.4 billion). Petrobras noted that Brent crude prices rose 27% versus the previous quarter, while the Brazilian real also strengthened against the U.S. dollar, supporting sequential results.
Although quarterly profit more than doubled from the fourth quarter of 2025, Petrobras emphasized operational improvements rather than the year-over-year decline highlighted by investors and analysts. Excluding one-off events, first-quarter adjusted net income totaled 23.8 billion reais ($4.5 billion).
Operationally, Petrobras posted record output across several categories during the quarter. Total operated production reached 4.65 million barrels of oil equivalent per day (boepd), while company-owned production rose to 3.23 million boepd. Production from Brazil’s prolific pre-salt fields reached a record 2.66 million boepd.
The company also reported strong refining performance. Refinery utilization averaged 95% during the quarter and reached 97.4% in March, the highest monthly utilization rate since 2014. Petrobras produced 1.81 million barrels per day of refined products during the quarter, including record production of low-sulfur Diesel S10 in March.
Petrobras continued expanding its upstream footprint internationally and domestically. During the quarter, the company acquired a 42.5% stake in Namibia’s offshore Block 2613, assumed operatorship of offshore Block 3 in São Tomé and Príncipe, and expanded its participation in Brazil’s Tartaruga Verde and Espadarte offshore fields.
The company also announced new discoveries in Brazil’s Campos Basin pre-salt region and a third gas discovery in Colombia, reinforcing Petrobras’ strategy of growing high-margin offshore production.
Capital expenditures rose 25.6% year-over-year to 26.8 billion reais ($5.1 billion), reflecting continued investment in offshore development, refining infrastructure, and energy projects. Petrobras maintained gross debt at $71.2 billion, below the $75 billion ceiling outlined in its 2026–2030 business plan.