PBR

Petróleo Brasileiro S.A. - Petrobras PBR delivered a second-quarter 2026 earnings beat as record production, higher exports and a sharp rise in Brent prices lifted results. Earnings per ADS reached $1.72 versus the Zacks Consensus Estimate of $1.52, while revenues rose 59.8% year over year to $33.61 billion. The question now is durability. Production still has room to ramp and refining is operating at record utilization, but a less favorable crude-price backdrop could test how much of the earnings step-up can persist. Petrobras beat the earnings estimate by 13.2%, while revenues topped the $30.83 billion consensus mark by 9%. Adjusted EBITDA excluding one-off events reached $19.96 billion, up 95.1% year over year. Exploration and Production revenues climbed 58.2% to $22.79 billion. Higher production and Brent prices lifted segment gross profit 72.2% to $13.44 billion. Brazil oil and natural gas liquids production rose 15.2% year over year to 2.689 million barrels per day. P-79 started three months ahead of the 2026-2030 Business Plan, while P-78 and Alexandre de Gusmão continued ramping. Image Source: Petrobras Petrobras identified about 270,000 barrels per day of remaining ramp-up capacity for the second half of 2026. Chevron Corporation CVX also posted record U.S. upstream output of nearly 2.1 million oil-equivalent barrels per day in the second quarter. Refinery utilization reached a record 101.2%, while oil-products output rose 10.9% year over year to 1.918 million barrels per day. Oil-products imports fell to 67,000 barrels per day, the lowest quarterly volume on record. Refining, Transportation and Marketing revenues advanced 63.4% to $32.35 billion. Segment adjusted EBITDA increased to $3.56 billion from $1.08 billion a year earlier. Operating cash flow reached $12.25 billion, while capital expenditures totaled $5.29 billion. About 82% of quarterly capital spending went to Exploration and Production projects. Gross debt ended June at $70.81 billion and net debt at $60.39 billion, while net debt to trailing 12-month adjusted EBITDA improved to 1.14 times from 1.43 times. Exxon Mobil Corporation XOM reported $23.6 billion of second-quarter cash flow from operating activities, providing another large-cap reference point for sector cash generation. Image Source: Petroleo Brasileiro S.A. - Petrobras Brent averaged $104.52 per barrel in the second quarter, up from $80.61 in the first. That 29.7% sequential increase amplified the benefit from higher production and exports. Management expects Brent to move back toward the assumptions used in Petrobras' strategic plan. If that occurs, higher output and refining efficiency will need to offset some lost price support, making future quarters a clearer test of earnings durability. Petrobras has an operational path to carry some second-quarter gains forward through platform ramp-ups and record refining activity. Still, the current earnings level also reflects an oil-price environment that management does not expect to persist. PBR currently carries a Zacks Rank #4 (Sell). It also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those Style Scores indicate favorable characteristics across the four measures, but they complement the Zacks Rank rather than override it. With a #4 Rank, the near-term estimate-revision signal remains the more cautious indicator. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report ExxonMobil Holdings Corporation (XOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Petroleo Brasileiro S.A., or Petrobras PBR, reported second-quarter 2026 earnings per ADS of $1.72, up 168.8% from 64 cents a year ago and above the Zacks Consensus Estimate of $1.52. The 13.2% earnings surprise reflected stronger production, exports and Brent pricing. Revenues jumped 59.8% year over year to $33,607 million and beat the $30,831 million consensus estimate by 9%. Total oil, NGL and natural gas production reached a record 3,336 thousand barrels of oil equivalent per day (MBOE/d). Exploration & Production revenues surged 58.2% year over year to $22,785 million. Segment net income attributable to Petrobras shareholders more than doubled to $8,250 million from $3,974 million, while adjusted EBITDA rose 77% to $15,874 million. Brazil oil and NGL production climbed 15.2% to 2,689 MBOE/d. Growth reflected higher operational efficiency, the ramp-up of Maria Quitéria, Alexandre de Gusmão and P-78, and the start-up of P-79.  The strong upstream backdrop was also evident across major integrated peers. Chevron CVX reported second-quarter production growth of more than 200,000 barrels of oil equivalent per day sequentially, while ExxonMobil Holdings XOM achieved record Permian production of more than 1.8 million barrels of oil equivalent per day. Petroleo Brasileiro S.A.- Petrobras price-consensus-eps-surprise-chart | Petroleo Brasileiro S.A.- Petrobras Quote Refining, Transportation and Marketing revenues advanced 63.4% year over year to $32,351 million. Net income attributable to shareholders rose to $1,920 million from $217 million, and adjusted EBITDA increased to $3,562 million from $1,080 million. Oil products output increased 10.9% to 1,918 thousand barrels per day, while refinery utilization reached a record 101.2%. Oil products imports fell to 67 thousand barrels per day, the lowest quarterly volume on record. Refining strength extended beyond Petrobras. Chevron recorded more than 1 million barrels per day of U.S. refinery throughput, while ExxonMobil posted record second-quarter diesel production as constrained global refining capacity supported margins. Gas and Low Carbon Energies revenues increased 10.6% year over year to $2,406 million. Segment net income attributable to Petrobras shareholders rose to $190 million from $88 million, while adjusted EBITDA climbed 77.5% to $419 million. Natural gas sales volume increased 7.1% to 45 million cubic meters per day. Petrobras also introduced a Brent-linked price band mechanism for natural gas contracts, setting minimum and maximum limits to reduce exposure to international price volatility. Consolidated net income attributable to shareholders rose 120.3% year over year to $10,428 million. Net income excluding one-off events increased 170% to $11,073 million, while adjusted EBITDA excluding one-off events advanced 95.1% to $19,959 million. The reported income statement showed quarterly gross profit of $19,493 million. Operating expenses increased to $5,240 million. Higher taxes related to crude oil exports and lower foreign-exchange gains partly offset stronger operating performance. Cost discipline remained an industry theme as well. Chevron reached $3 billion of structural cost reductions six months early, while ExxonMobil lifted cumulative structural cost savings since 2019 to $16.3 billion. Petrobras generated $12,250 million of operating cash flow in the quarter as higher production and sales strengthened cash generation. Capital expenditures totaled $5,291 million, with 82% directed toward Exploration & Production projects. The Rank #4 (Sell) company ended June with gross debt of $70,806 million and net debt of $60,388 million. Petrobras continues to prioritize production growth and capital discipline while advancing major projects. For comparison, Chevron generated $15,433 million of adjusted free cash flow in the quarter, while ExxonMobil reported $23,555 million of cash flow from operations, highlighting the strong cash-generation environment across large integrated energy producers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report ExxonMobil Holdings Corporation (XOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Petroleo Brasileiro S.A.- Petrobras? Here are five stocks we like better. Record second-quarter performance: Petrobras reported its highest recurring net profit in U.S. dollars and company-record gross profit, supported by stronger oil production, refinery utilization, exports and Brent prices. Adjusted EBITDA reached $20 billion, up 70% sequentially. Production and refining improved significantly: Oil output rose 15% year over year to 2.7 million barrels per day, exceeding the company’s target, while refinery utilization reached 101% and imports fell 40%. Petrobras also retains approximately 270,000 barrels per day of potential production ramp-up capacity for the second half of 2026. Capital priorities remain investment and debt reduction: Petrobras repaid $2.9 billion in financing, ending the quarter with BRL 60.4 billion in net debt, and expects contract renegotiations to generate more than BRL 1 billion in cash-flow savings through 2030. Executives said extraordinary dividends are currently unlikely as the company prioritizes high-return projects and debt reduction. Sea, Space, & Sky: 3 Frontier Robotics Stocks Under $20 Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) reported record operating and financial performance for the second quarter of 2026, supported by higher oil production, refinery utilization, exports and Brent crude prices, executives said during the company’s webcast with analysts and investors. President Magda Chambriard said Petrobras generated its highest quarterly recurring net profit in U.S. dollars and its highest gross profit in company history, excluding one-time events. The company achieved the results without asset sales, she said. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling These 3 Little-Known Stocks Are Analyst Favorites “We had over 10 quarters with oil prices above” current levels in the past, Chambriard said, adding that Petrobras nevertheless delivered its strongest recurring net-income performance because of operational execution. Petrobras produced 2.7 million barrels of oil per day during the quarter, or more than 3 million barrels of oil equivalent per day when gas is included. The oil-production figure exceeded the company’s second-quarter target of 2.5 million barrels per day by 200,000 barrels per day, according to Chambriard. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Petrobras: Why Traders Are Betting Big on a Shareholder Payout Chief Financial and Investor Relations Officer Fernando Melgarejo said oil production rose 15% from a year earlier, representing approximately 350,000 additional barrels per day. He attributed the increase to improved production efficiency, faster project ramp-ups and production above nameplate capacity at certain offshore units. Melgarejo highlighted production from the Alexandre de Gusmão unit at the Mero field and the P-78 platform at Búzios, which were producing 100,000 and 120,000 barrels per day, respectively. Both platforms have capacity of 180,000 barrels per day. P-79 began operations in May and also has nameplate capacity of 180,000 barrels per day. → No Hangover: Revisiting Microsoft One Week After Earnings The company said it still had roughly 270,000 barrels per day of potential ramp-up capacity in the second half of 2026. The Almirante Tamandaré FPSO at Búzios, originally designed for 225,000 barrels per day, reached peak output of 270,000 barrels per day and was identified as Brazil’s highest-producing platform. Petrobras also has six other platforms adapted to operate above their original capacities. Chambriard said the company’s annual production decline rate has been reduced to about 4%, from approximately 12% when the current administration took office. Chief Exploration and Production Officer Sylvia Anjos said the company is seeking to manage declines through reservoir monitoring, 4D seismic work, intelligent completions, water injection and supplemental wells. Petrobras said refinery utilization reached 101% in the quarter and approximately 102% in April and May. Production of oil products rose 6% sequentially, while imports fell 40%, particularly for diesel. The company said it maintained its mix of higher-value products, including diesel, jet fuel and gasoline, even as refinery utilization increased. Oil exports rose 12% during the quarter, helping boost revenue and cash generation. Chambriard said increased production and refining output allowed Petrobras to reduce imports while expanding exports. Melgarejo said adjusted EBITDA excluding one-off events totaled $20 billion, up 70% from the prior quarter and nearly double the level from a year earlier. Gross profit reached $19.5 billion, which he described as a company record. Operating cash flow was BRL 12.3 billion, up nearly 50% from the first quarter, according to the presentation. The company invested $5.3 billion in the second quarter, compared with $5.1 billion in the first quarter. About 82% of first-half investments were directed to exploration and production projects. Petrobras said drilling increased 40%, well completions rose 45%, and interconnections increased 43% from the prior quarter. P-80 and P-82 are scheduled for completion in the third quarter of 2026, with production planned to begin in the second quarter of 2027. Petrobras is working to bring P-80’s production start forward to the first quarter of 2027. P-83 is scheduled for completion early in the first quarter of 2027, with production expected in the second half of that year. Petrobras repaid $2.9 billion in loans and financing during the quarter, including $1.4 billion of bank-market transactions and $700 million in bond repurchases and redemptions. It also raised about $600 million during the period. The company ended the quarter with gross debt of BRL 70.8 billion and net debt of BRL 60.4 billion, Melgarejo said. The company also renegotiated recharter and well-service contracts. Petrobras expects the agreements to generate more than BRL 1 billion of cash-flow savings between 2026 and 2030 and reduce debt by more than BRL 400 million by 2030. Melgarejo said capital allocation priorities remain accelerating projects that offer attractive returns and reducing debt. He said extraordinary dividends appeared unlikely at present because the company continues to see investment opportunities and expects Brent prices to return toward levels used in its 2025-2030 strategic plan. For refining operations, Chief Industrial Processes and Products Officer William França said the company does not have major maintenance shutdowns postponed from the first half into the second half. A planned Cubatão shutdown is scheduled for August, while other expected work includes catalytic cracking unit outages and work at REPAR. Petrobras postponed planned downtime at REGAP and REPLAN to early 2027 in connection with expansion projects and after reliability assessments. Petrobras said it continues to pursue reserve replacement through exploration in Brazil and internationally. Melgarejo announced a new gas discovery in Colombia, while Anjos said the company has exploration investments across the equatorial margin, southeast Brazil and international areas including Africa. The company said it is evaluating opportunities in South America, Mexico and Africa, particularly areas where it believes its experience in deepwater and ultra-deepwater exploration may be applicable. Petrobras has partnerships in South Africa with TotalEnergies, as well as partnerships involving Shell and Namibia, executives said. At Brazil’s equatorial margin, Petrobras is drilling the BM-FZA-49 block and is seeking authorization for three additional contingent wells. Anjos said there were about 500 meters remaining before reaching the reservoir at the current well and that the company expected results by the end of the month. Regarding Braskem, Chambriard said Petrobras had recently gained greater political influence through a new shareholders agreement and was reviewing the company’s situation. Melgarejo said discussions remain sensitive ahead of Braskem’s planned Aug. 13 earnings release and an injunction that expires Oct. 24. Petróleo Brasileiro SA – Petrobras is a Brazilian, state-controlled integrated oil and gas company headquartered in Rio de Janeiro. Founded in 1953, Petrobras is principally engaged in the exploration and production of crude oil and natural gas, and operates across the full value chain from upstream activities through refining, transportation and downstream marketing of petroleum products. The company is a major player in Brazil's energy sector and is a listed public company with global capital market presence. Petrobras's core activities include deepwater and ultra-deepwater exploration and production, where it has been a pioneer in developing pre-salt reserves off Brazil's coast. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Petroleo Brasileiro S.A.- Petrobras Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Recurring Net Income: Highest quarterly recurring net profit in dollars in Petrobras' history, excluding one-off events. Gross Profit: Record gross profit of $19.5 billion for the quarter, the highest in company history. Adjusted EBITDA: $20 billion, excluding one-off events, up 70% from the previous quarter and nearly double year-over-year. Operating Cash Flow: $12.3 billion for the quarter, up nearly 50% from the previous quarter. Oil Production: 2.7 million barrels of oil per day, a 15% increase year-over-year, surpassing the 2.5 million barrel goal by 200,000 barrels. Total Production: More than 3 million barrels of oil equivalent per day, including gas. Refinery Utilization Factor (FUT): Surpassed 100%, reaching 101% for the quarter, with a record 102% in April and May. Oil Product Output: Increased by 6% quarter-over-quarter, with a 68% yield mix in higher value-added products. Imports: Reduced by 40% versus the previous quarter, especially diesel. Exports: Increased by 12% in the quarter. CapEx: $5.3 billion invested in the second quarter, up 4% from the first quarter; $10.4 billion invested over the first half. Gross Debt: $70.8 billion at the end of the quarter. Net Debt: $60.4 billion at the end of the quarter. Operating Expenses: $11.7 billion in the first half of the year versus a full-year plan of $20.2 billion. Taxes and Government Take: Paid BRL88.6 billion in the second quarter, about BRL22 billion more than the same period last year. Warning! GuruFocus has detected 3 Warning Signs with PBR. Is PBR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly recurring net profit and gross profit in company history, driven by operational efficiency rather than peak oil prices. Oil production reached 2.7 million barrels per day, surpassing guidance by 200,000 barrels, with additional ramp-up capacity of 270,000 barrels per day in the second half. Refinery utilization factor exceeded 100%, leading to a 6% increase in byproduct production and a 40% reduction in diesel imports. Strong cash generation with operating cash flow of $12.3 billion, up nearly 50% quarter-over-quarter, supporting debt reduction and shareholder returns. Successful renegotiation of charter and well service contracts expected to save over $1 billion in cash flow over the 2026-2035 period. Multiple platforms operating above nameplate capacity, adding over 100,000 barrels per day without additional investment. New gas discovery in Colombia and ongoing exploration in new frontiers (e.g., equatorial margin, Africa) to replenish reserves. Operating expenses are running above plan due to higher freight, logistics, and exchange rate effects, potentially exceeding full-year projections. Gross debt increased to $70.8 billion due to recognition of lease liabilities from contract renegotiations, though partially offset by debt repayments. Diesel imports remain necessary despite increased refining output, exposing the company to import parity price volatility. Uncertainty regarding regulatory changes in the gas market could impact project economics and require reassessment of investments. Potential for extraordinary dividends is considered unlikely in the near term, as surplus cash is prioritized for debt reduction and project acceleration. Braskem's financial difficulties and potential legal reorganization pose a risk, with Petrobras still assessing its options and potential capital implications. Exploration results in the equatorial margin are pending, with drilling still in progress and no guarantee of commercial discoveries. Q: With record production and strong cash generation, how will Petrobras allocate the incremental capital, and is there room for extraordinary dividends? A: Fernando Melgarejo, CFO, stated that the priority is to bring forward high-return investments, such as the P80 platform, and to accelerate the convergence of net debt to the $65 billion target ahead of the 2030 plan. While extraordinary dividends are considered unlikely in the current scenario, the company maintains its commitment to the 14% ordinary dividend formula, and any surplus would naturally flow to shareholders if no value-accretive investments are available. Q: Can you provide an update on the production outlook and the ramp-up of new platforms like P80, P82, and P83? A: Magda Chambriard, CEO, and Renata Baruzzi, Chief Engineering Officer, confirmed that production surpassed 2.7 million barrels per day, exceeding guidance. The company is working to bring the P80 platform's production start forward to Q1 2027, with P82 and P83 scheduled for 2027. Sylvia Anjos, E&P Chief, added that the production guidance remains at the top of the range, with a 4% leeway, and highlighted efforts to reduce platform downtime to maximize output. Q: How sustainable is the low production decline rate of 4% in the pre-salt fields? A: Sylvia Anjos, Chief Exploration and Production Officer, explained that the low decline is driven by a multi-pronged strategy: advanced seismic imaging for better reservoir understanding, intelligent well completions to manage water and gas zones, record-breaking water injection for reservoir pressurization, and strategically positioned supplemental wells. This approach, combined with the management of giant fields like Buzios, ensures production sustainability and contributes significantly to partner results. Q: What is Petrobras's stance on the potential judicial reorganization of Braskem, and what is the company's role in the negotiations? A: Magda Chambriard, CEO, noted that Petrobras has gained more political influence under the new shareholders' agreement and is now closely examining Braskem's situation. Fernando Melgarejo, CFO, added that Petrobras is evaluating all options within the shareholder agreement and is in contact with Braskem's board. He highlighted that an injunction is in place until October 24, and Braskem's earnings release on August 13 will be a key moment, limiting further public comment at this time. Q: How does Petrobras plan to contribute to the government's goal of lowering gas prices, and what is the company's position on the proposed gas release? A: William Nozaki, Energy Transition Officer, stated that Petrobras's assessment is that simply transferring gas molecule ownership will not increase supply. He pointed out that the market is already open, with over 30 companies competing and private terminals surpassing Petrobras's capacity. Magda Chambriard, CEO, emphasized that any regulatory change would require a reassessment of project economics, as Petrobras must remain profitable. The company will participate in the 45-day public hearing on the draft proposal. Q: What are the main priorities for international expansion, particularly in Africa and Latin America? A: Magda Chambriard, CEO, highlighted South America as a key area of expertise, with over 30 years of operations in Bolivia and new gas imports from Argentina. Sylvia Anjos, E&P Chief, added that Africa, especially the Atlantic margin, is a target due to geological similarities with Brazil's deep-water basins. The company is also exploring opportunities in Mexico through a non-binding MOU with Pemex, focusing on deep and ultra-deep waters where Petrobras has significant expertise. Q: Given the high refinery utilization, what is the maintenance and downtime strategy for the second half of the year? A: William France, Chief Industrial Processing Officer, clarified that no major downtimes were postponed from H1 to H2. The only significant scheduled downtime is at Cubatao in August, with minor ones elsewhere. He highlighted that postponing Replan and Regap downtimes to 2027 allowed for record production, including a historical diesel production record in July. The company aims to maintain refinery utilization above 95%, focusing on reliability and safety. Q: Can you provide updates on the Pira (Buzios) concession renewal, the equatorial margin drilling, and the potential for rare metals investments? A: Magda Chambriard, CEO, stated that Buzios concession negotiations are ongoing with government institutions, with no premature announcements. On the equatorial margin, drilling at the FZA-M-49 block is in its final phase, with results expected by the end of the month, and permits are being sought for three contingent wells. Regarding rare metals, the CEO clarified that no investment commitments have been made; these are only opportunities under assessment, subject to strict governance and economic viability. Q: What is the company's strategy for M&A, particularly regarding fuel distribution, ethanol, and the Mataripe refinery? A: Magda Chambriard, CEO, reaffirmed that the strategic plan is the primary driver for M&A decisions. The non-compete agreement with Vibra will be honored, but the company has ambitions in B2B fuel distribution. Due diligence on the Mataripe refinery is ongoing with no new developments. William Nozaki added that ethanol remains a priority segment, with negotiations progressing, and any developments will be communicated in due time, respecting confidentiality. Q: How is Petrobras managing its diesel import strategy given the current price scenario and local prices below import parity? A: Angelica Laureano, Chief Logistics and Commercialization Officer, explained that import decisions are based on competitiveness and profitability criteria, considering customer commitments, seasonal demand, refining margins, and logistics. The company maintains its commercial strategy, supported by public policy, to keep customer-perceived prices lower. Imports are occurring naturally to meet demand, with no shortage in the market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Petróleo Brasileiro S.A. - Petrobras PBR is set to release second-quarter 2026 results on Aug. 6. The Zacks Consensus Estimate for earnings is pegged at $1.36 per share on revenues of $33.4 billion. Let us delve into the factors that are likely to have influenced the integrated oil and gas firm’s performance in the to-be-reported quarter. But it is worth taking a look at PBR’s previous-quarter performance first. In the last reported quarter, the Rio de Janeiro-based Brazilian state-run energy giant missed the consensus mark due to weaker-than-expected sales for the quarter. Petrobras reported adjusted earnings per ADS of 70 cents, which missed the Zacks Consensus Estimate of $1.02. Moreover, the company’s quarterly revenues of $23.5 billion lagged the consensus estimate of $26.4 billion. PBR’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed in the other two, resulting in a negative surprise of 2.5%, on average. This is depicted in the graph below: Petroleo Brasileiro S.A.- Petrobras price-eps-surprise | Petroleo Brasileiro S.A.- Petrobras Quote The Zacks Consensus Estimate for the second-quarter bottom line has been revised 0.7% upward in the past seven days. The estimated figure indicates 112.5% year-over-year growth. The consensus estimate for revenues, meanwhile, indicates a 58.9% rise from the year-ago period. Despite strong operational momentum, Petrobras could face an earnings miss in the quarter to be reported due to several headwinds. The company continues to absorb fuel price volatility rather than fully passing higher international prices to domestic customers, relying on government subsidies that create working capital uncertainty and delay cash receipts. Management also acknowledged that diesel imports will likely be required in the second half to meet seasonal demand, while planned refinery maintenance could weigh on production efficiency. Rising capital spending on new upstream projects, debt reduction priorities over shareholder distributions, and continued geopolitical uncertainty that could trigger sharp oil price swings may further pressure earnings and investor sentiment. On a bullish note, per its ‘Production and Sales Report’ issued for the second quarter of 2026, Petrobras is likely to have recorded a strong quarter, with total oil, gas and natural gas liquids production rising 14.1% year over year to 3.34 million barrels of oil equivalent per day (MMboed). This growth was driven by increased operational efficiency, the ramp-up of FPSOs Maria Quitéria in the Jubarte field, Alexandre de Gusmão in the Mero field, and P-78 in the Búzios field, as well as the start-up of FPSO P-79 in the Búzios field. A total of 10 new wells were brought online, including four in the Campos Basin and six in the Santos Basin. The proven Zacks model does not conclusively predict an earnings beat for PBR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here. Earnings ESP of Petrobras: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +15.87%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter. PBR’s Zacks Rank: PBR currently carries a Zacks Rank of 5 (Strong Sell). Here are some firms from the energy space, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle. Calumet, Inc. CLMT has an Earnings ESP of +169.57% and a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here. CLMT is scheduled to release earnings on Aug. 7. Notably, the Zacks Consensus Estimate for Calumet’s current quarter earnings per share indicates 86.5% year-over-year growth. Valued at around $3.8 billion, the company’s shares have surged 188.9% in a year. Similarly, Plains All American Pipeline, L PAA has an Earnings ESP of +6.71% and a Zacks Rank of 3 at present. PAA is slated to release earnings on Aug. 7. The Zacks Consensus Estimate for 2026 earnings per share indicates 0.65% year-over-year growth. Valued at around $17.3 billion, Plains’ shares have gained 37% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report Calumet, Inc. (CLMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Vista Energy VIST remains a difficult stock to frame after its latest results. The company is delivering fast production growth, larger scale in Vaca Muerta and inexpensive earnings multiples. The offset is clear. Vista missed second-quarter earnings expectations, estimates have moved lower and the stock sits close to its stated price target. That makes the investment case mixed rather than a straightforward value call. Vista’s operating momentum improved in the second quarter of 2026. Total production rose 32% year over year to 156,061 barrels of oil equivalent per day, with organic development accounting for 20 percentage points of that increase. The company tied in 27 net new wells during the quarter and connected 90 new wells over the past 12 months. Management expects production of about 160,000 barrels per day in the third quarter and 170,000 in the fourth quarter, supporting the 2026 guidance of 158,000 barrels of oil equivalent per day. The growth profile also rests on the company’s Vaca Muerta position, where Vista has about 1,150 premium untapped drilling locations across 205,600 acres. YPF Sociedad Anonima YPF, Vista’s partner in Bandurria Sur and Bajo del Toro, remains an important name in the same Argentine energy landscape. Image Source: Vista Energy S.A.B.de C.V. The valuation looks inexpensive on earnings but less exciting against the target. Vista’s share price was $68.57, compared with a 6-12 month price target of $70, leaving only modest implied upside. The stock trades at a forward price-to-earnings ratio of 7.2, while its forward sales multiple is 1.69. That sales multiple is close to Vista’s five-year median of 1.65, but above the sub-industry benchmark of 0.73. Petroleo Brasileiro S.A. PBR, known as Petrobras, provides a useful regional reference for investors looking at Latin American oil exposure. Petrobras has a broader integrated business model, while Vista’s case is more concentrated around upstream growth and Vaca Muerta execution. Vista’s second-quarter earnings did not match the top-line performance. Adjusted earnings of $2.38 per share missed the Zacks Consensus Estimate of $3.15 by 24.4%, even as revenues rose 102.3% year over year to $1.23 billion. Revenues beat the consensus mark by 14.2%, reflecting higher production and stronger realized oil prices. Still, higher cost of sales offset part of that strength and kept the earnings surprise negative. Estimate revisions add another caution point. The current fiscal-year earnings estimate declined 26.1% over the past four weeks, although annual earnings are still projected to rise from $3.31 per share in 2025 to $9.54 in 2026. Vista generated operating cash flow of $985.1 million in the second quarter. Reported free cash flow was $99.1 million, but excluding the acquisition payment, free cash flow reached $491 million. That cash generation gives management room to reduce debt after the Bandurria Sur and Bajo del Toro deal. Gross debt stood at $3.66 billion at the end of the quarter, with cash of $604.7 million. Net leverage improved to 1.41 times adjusted EBITDA, or 1.25 times on a pro forma basis. Management targets roughly 1 times adjusted EBITDA by year-end, though that goal still depends on oil prices, working-capital movements and capital spending. The bottom line is that Vista’s growth and valuation remain attractive, but the near-term signals are not uniformly favorable. The production ramp, Vaca Muerta depth and cash flow improvement support the long-term story, while the earnings miss, estimate cuts and limited price-target upside argue for restraint. Vista currently has a Zacks Rank #5 (Strong Sell). That rank weighs heavily because the Zacks Rank is centered on earnings estimate revisions, and recent revisions have moved in the wrong direction. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Style Scores tell a more constructive but incomplete story. Vista has a Value Score of A, Growth Score of A and VGM Score of A, pointing to favorable valuation and growth characteristics, but its Momentum Score of C suggests the trading setup is less convincing. For now, the Rank keeps caution at the center of the investment case. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vista Energy, S.A.B. de C.V. - Sponsored ADR (VIST) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report YPF Sociedad Anonima (YPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Constellation Oil Services Holding SA (FRA:QG21) reported a significant increase in adjusted EBITDA, reaching $97 million, more than double from Q1 2025. The company achieved an impressive 99% fleet uptime, contributing to strong operational performance. Current contracts are priced approximately 50% above legacy levels, indicating improved revenue potential. Constellation successfully renegotiated contracts with Petrobras, adding approximately $1.1 billion to its backlog. The company has uplisted to the main market of Oslo Brs, enhancing its capital markets presence and liquidity. Despite strong performance, the company maintained a conservative EBITDA guidance, not reflecting the Q1 outperformance. Operating cash flow decreased to $29 million from $33 million in the prior year, although timing issues were noted. CapEx remained high at $43 million, primarily due to contract transitions, which may impact short-term cash flow. There is potential for idle time for the Atlantic rig after its current contract, which could affect future earnings. Political and sanctions risks in Venezuela could impact potential expansion opportunities in the region. Warning! GuruFocus has detected 3 Warning Signs with FRA:QG21. Is FRA:QG21 fairly valued? Test your thesis with our free DCF calculator. Q: Are you seeing a chance of new tenders coming from Petrobras later this year? Any news on the potential work for the Lone Stars that could populate more of the 2027 backlog? A: Rodrigo Ribeiro, CEO: Petrobras has replenished their rig demand for 2026 and 2027, so a new tender is expected for 2028, likely starting in Q4 2026 or Q1 2027. Regarding Lone Star, we maintain our strategy of having it available for IOCs and independent players. The exclusive agreement has expired, but the potential client continues to evaluate the project, and Lone Star remains a favorite candidate. Q: You delivered a strong first quarter, but the upper end of EBITDA guidance was narrowed. Are you being conservative in your guidance? How do you expect EBITDA to develop from Q2 to Q4? A: Daniel Harshman, CFO: There was a typo in the presentation; the upper range of EBITDA should be $385 million, not $380 million. We had a fantastic quarter, and the indications are that we can deliver on this guidance. We are being conservative and not reviewing upwards for the second half, but we reaffirm our ability to deliver good results. Q: Do you see potential work for Atlantic on the back of its current contract? A: Rodrigo Ribeiro, CEO: Atlantic has good potential for upside. It is currently working with Caron Energy, and there is a need for such rigs in the region. Considering Petrobras' backlog of wells to be abandoned, Atlantic will continue to generate cash and find opportunities in the region. Q: Are you looking at expanding the number of rigs? A: Rodrigo Ribeiro, CEO: We are exploring growth opportunities without jeopardizing shareholder returns. We have added two rigs to our fleet and are operating nine rigs from the same hub in Brazil. We are prepared to grow further if the right assets, partners, and market conditions align. Q: Have you considered share buybacks alongside dividends? A: Daniel Harshman, CFO: We are not considering share buybacks at this stage. We are focused on increasing liquidity and free float through uplisting and secondary sales. Our current strategy is to return capital to shareholders through dividends, with potential increases starting next year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The refining business of Petroleo Brasileiro S.A., or Petrobras (PBR), had a strong first quarter, and the main reason was simple: its refineries ran harder and produced more fuel. In the first quarter of 2026, the company produced 1,816 thousand barrels per day (Mbpd) of refined products, up 6.7% from the previous quarter. Its refinery utilization rate reached 95%, and in March it climbed to 97.4%, the highest monthly level since December 2014. This shows that Petrobras is getting more out of its existing refining assets at a time when fuel demand and supply security remain important. The stronger performance came from making more of the products that matter most to customers and margins. Diesel, gasoline and jet fuel made up 68% of total oil products output in the quarter. The largest integrated energy firm in Brazil also reached a monthly record of 512 Mbpd of S-10 diesel production in March. Since S-10 diesel is a cleaner, high-demand fuel, producing more of it can help Petrobras improve its product mix and support downstream profitability. The higher use of pre-salt oil in refining also points to better flexibility in turning domestic crude into higher-value products. This is important beyond just quarterly numbers. Higher refinery output helped Petrobras reduce its need for imports, including LPG imports, which fell to 26 Mbpd. The company also signed a deal with mining behemoth Vale to supply S-10 diesel containing 15% biodiesel, showing how its refining business can support both customer relationships and lower-carbon fuel offerings. If Petrobras can keep utilization high while controlling costs, the downstream business could become a more reliable earnings driver. Petrobras’ stronger refining performance is not happening in isolation. A look at U.S. energy giants Chevron CVX and ExxonMobil XOM shows that downstream strength remains an important earnings lever for integrated energy majors, especially when higher utilization, better margins and product optimization come together. Downstream Momentum Extends Beyond Petrobras Chevron’s downstream had a mixed first quarter, but its refining assets showed clear operating strength. U.S. downstream earnings rose from a year earlier as margins improved, and U.S. refinery crude inputs increased 4% to 1,054 Mbpd, helped by Pasadena’s Light Tight Oil project. Chevron also achieved record U.S. crude throughput in March. For Chevron, international downstream weakness came from timing effects and higher costs. ExxonMobil’s downstream performance was stronger on an underlying basis. Energy Products earnings, excluding identified items and timing effects, reached $2.8 billion, up $1.9 billion year over year, supported by better refining margins, trading and optimization gains, and cost savings. ExxonMobil also benefited from high U.S. Gulf Coast refinery utilization, although maintenance and Middle East disruptions reduced volumes. For ExxonMobil, downstream remained a key earnings support. The Zacks Rundown on PBR Shares of PBR have gained some 68% over the past year, outperforming the industry’s growth. Image Source: Zacks Investment Research Petrobras currently has an average brokerage recommendation (ABR) of 1.61 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. Image Source: Zacks Investment Research See how the Zacks Consensus Estimate for PBR’s earnings has been revised over the past 90 days. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Petroleo Brasileiro S.A., better known as Petrobras PBR, delivered a first-quarter report that was mixed on the surface but encouraging underneath. The company fell short of earnings and revenue expectations, yet the overall picture pointed to strong operational momentum. Petrobras reported higher year-over-year revenues and earnings, record production, healthy cash generation and continued improvement across its refining and offshore businesses. At a time when energy giants like ExxonMobil XOM and Chevron CVX are leaning on high-quality assets and disciplined execution, Petrobras is also showing signs of strong operational strength and long-term growth potential. Petrobras reported first-quarter earnings per ADS of 70 cents, below the Zacks Consensus Estimate of $1.02, while revenues of $23.5 billion missed the $26.4 billion consensus. Still, EPS improved from 62 cents a year earlier and revenues rose 11.7%. Excluding one-off items, net income attributable to Petrobras shareholders reached $4.5 billion, up from $4 billion, while adjusted EBITDA increased to $11.7 billion from $10.7 billion. Operating cash flow was $8.4 billion and free cash flow was $3.9 billion. The biggest positive was production. Petrobras achieved record oil, NGL and natural gas production of 3,225 thousand barrels of oil equivalent per day (MBOE/d), up 16.1% from the prior-year period. Growth was driven by stronger output from key offshore fields such as Búzios, Mero, Marlim and Voador. The company’s upstream business generated $16 billion in revenues and $4.8 billion in net income. Similar to ExxonMobil and Chevron, Petrobras is relying on efficient, low-cost production to support profits across commodity cycles. Image Source: Petrobras Petrobras also saw strong improvement in its refining, transportation and marketing operations. Segment revenues increased to $22.3 billion from $20 billion a year ago, while net income jumped sharply to $2.3 billion from just $367 million. Adjusted EBITDA more than tripled to $3.8 billion. The company produced 1,816 thousand barrels per day (Mbpd) of refined products during the quarter, while refinery utilization rose to 95%. Diesel, jet fuel and gasoline accounted for most of the output mix. Petrobras also continues to expand refining capacity. Its RNEST refinery set a record for S-10 diesel production in April, reaching 385 million liters, about 60% above the year-ago level. Its 2025 Revamp project expanded RNEST's operational capacity to 130 Mbpd, and Petrobras plans to invest about R$12 billion to complete Train II and maintenance work, eventually doubling RNEST capacity to 260 Mbpdby 2029. More domestic diesel supply can reduce imports and support margins. Investors have already started recognizing Petrobras’ improving outlook. PBR shares have surged more than 50% over the past six months, outperforming both ExxonMobil and Chevron during the same period. The strong stock performance reflects confidence in Petrobras’ production growth, improving refining operations and shareholder return potential. Image Source: Zacks Investment Research Earnings estimates also support the bullish view. The Zacks Consensus Estimate for Petrobras’ 2026 earnings implies a 68.6% increase, aided by strong production growth and efficient operations. Although earnings are expected to moderate in 2027, the near-term setup still looks constructive. In such a scenario, investors should watch oil prices, taxes, debt and capital spending. Image Source: Zacks Investment Research Valuation is another positive, as PBR trades at a discount to the industry on a forward price-to-earnings basis. Compared with ExxonMobil and Chevron, Petrobras carries higher political and country-specific risks, but its discount, strong share performance and improving earnings outlook make the risk-reward attractive. Image Source: Zacks Investment Research Petrobras is also strengthening its long-term growth profile through projects like the early startup of the P-79 FPSO at the Búzios field.The FPSO started production three months ahead of the 2026-2030 Business Plan schedule and has a capacity of 180 Mbpd of oil, plus daily gas compression capacity of 7.2 million cubic meters. The project should lift Búzios’ installed production capacity to about 1.33 million barrels per day and support gas exports through the Rota 3 pipeline. The peer backdrop is constructive. ExxonMobil beat first-quarter expectations on Permian and Guyana strength, cost savings and portfolio scale. Chevron beat expectations as higher upstream production, including growth tied to Hess assets, helped results. While ExxonMobil and Chevron remain global benchmarks for scale and shareholder returns, Petrobras is showing that it can compete through pre-salt growth, refining efficiency and sizable cash generation. Petrobras’ first-quarter report was not perfect, but the investment case looks stronger. The earnings miss was outweighed by record production, better downstream profitability, strong cash flow, the early P-79 start-up, RNEST’s diesel record and favorable 2026 earnings expectations. Risks remain around oil prices, government influence, taxes and capital intensity, but Petrobras is executing well in the areas that matter most. With PBR trading at a forward earnings discount while delivering strong operating momentum, the stock looks compelling. PBR is currently a Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Petroleo Brasileiro S.A.- Petrobras? Here are five stocks we like better. Production hit new highs in Q1, with Petrobras producing 2.58 million barrels per day and reaching a monthly record of 2.73 million barrels per day in April. Growth was driven by new capacity projects, stronger pre-salt productivity and expansion at the Búzios field. Refining performance improved sharply, as refinery utilization rose above 97% in March and later exceeded 100% in April and May. The company also boosted S10 diesel output, helped by modernization work at key refineries. Petrobras emphasized capital discipline despite strong cash generation, reporting $4.5 billion in adjusted net income and $8.4 billion in operating cash flow. Management said debt is still trending toward targets, but extraordinary dividends are unlikely this year because of uncertainty and oil-price volatility. Sea, Space, & Sky: 3 Frontier Robotics Stocks Under $20 Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) reported higher production, stronger refinery utilization and continued investment in upstream projects during the first quarter of 2026, while executives said the company is monitoring fuel-price volatility and prioritizing capital discipline. Chief Executive Officer Magda Chambriard said Petrobras is “overcoming challenges every day,” pointing to capacity expansions, stronger pre-salt well productivity and new production systems as the operational foundation for the quarter’s results. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? These 3 Little-Known Stocks Are Analyst Favorites Chief Financial and Investor Relations Officer Fernando Sabbi Melgarejo said Petrobras produced 2.58 million barrels of oil per day in the first quarter. In April, production reached 2.73 million barrels per day, which Melgarejo described as a new monthly record for the company. Melgarejo said April production was about 30% higher than Petrobras’ 2024 average of 2.152 million barrels per day. He attributed the increase to new capacity projects, improved operational efficiency and reservoir management. → MP Materials Is Quietly Building a Rare Earth Powerhouse Petrobras: Why Traders Are Betting Big on a Shareholder Payout Chambriard highlighted the Búzios field, which she said is producing a little more than 1 million barrels of oil per day and could eventually reach 1.5 million and potentially 2 million barrels per day. She also noted that both Búzios and Tupi have surpassed the milestone of 1 million barrels per day. The P-79 platform, the eighth platform in the Búzios field, began production on May 1, three months ahead of schedule, according to Chambriard. She said Petrobras expects the platform to reach capacity of 180,000 barrels per day with only three or four wells. → Micron Investors Face a High-Stakes Moment After the Latest Rally Chambriard also cited capacity gains at FPSO Almirante Tamandaré, saying Petrobras expanded the unit’s capacity from an original design of 225,000 barrels per day to 270,000 barrels per day. She said three similar rigs under construction could also see capacity expansions, together adding 180,000 barrels per day beyond their original designs. Petrobras executives emphasized higher refinery throughput and increased production of S10 diesel, the company’s low-sulfur diesel product. Chambriard said S10 diesel output reached 512,000 barrels per day in March, reflecting investments in refinery modernization, including a new hydrotreatment unit at REPLAN and modernization work at Revap. Melgarejo said Petrobras’ refineries produced 1.8 million barrels per day of byproducts in the quarter. He said the refinery utilization factor increased by six percentage points and exceeded 97% in March, the highest level since 2014. Chambriard said utilization later surpassed 100% in April and May. William França da Silva, Director of Industrial Processes and Products, said Petrobras has been operating refineries at levels above 100% and recently reached 103%. He also said the RNEST refinery has increased processing levels, contributing additional diesel production. Executives said there is no indication of a structural shortage in Brazil’s fuel market. In response to an analyst question, company executives said Petrobras expects to import diesel in the second half of the year, when seasonal demand is typically higher, but said the company could do so without difficulty if necessary. Melgarejo said Petrobras generated EBITDA excluding one-time items of BRL 11.7 billion, net income excluding one-time items of $4.5 billion and operating cash flow of $8.4 billion in the first quarter. He said higher Brent prices were not fully reflected in the first-quarter results because the price surge began in March and many exports recognized in the month were priced earlier. He also said record production had “virtually no impact” on earnings because of an export backlog of about 80,000 barrels per day, which he expects to support second-quarter results as inventory is monetized at higher prices. Petrobras invested $5 billion in the first quarter, with nearly 90% directed to exploration and production projects, according to Melgarejo. He said investment increased in wells, subsea activities and rig construction, and noted that Petrobras is focusing on the construction of P-80, P-82 and P-83, each expected to have capacity of 225,000 barrels per day. Gross debt ended the quarter at $71.2 billion, below the company’s $75 billion ceiling under its business plan. Melgarejo said Petrobras still expects debt to converge to $67 billion in 2026 and $65 billion by the end of the plan, or potentially lower. He said more than 60% of total debt is related to leases recognized under accounting standards. Petrobras also reported BRL 72.4 billion in tax payments and government take during the quarter, including BRL 27.3 billion in federal taxes, BRL 29 billion to states, BRL 700 million to municipalities and nearly BRL 15 billion in government royalties. Chambriard said Petrobras is monitoring international oil and fuel-price volatility but is not passing abrupt price movements directly to Brazilian consumers. She said the company is following its pricing policy while also working with the federal government on support mechanisms for domestic fuel sales. She said diesel in Brazil currently has a subsidy of BRL 1.50 per liter, following government support measures in March, and said Petrobras is also assessing gasoline prices in light of international prices and competition from ethanol in Brazil’s flex-fuel vehicle market. Melgarejo said March subsidies were recorded in accounts receivable and included in BRL 740 million of results, with payment expected within the quarter. He said further subsidies are still going through operational procedures. On capital allocation, Melgarejo said the company’s priorities are investment in profitable projects and debt reduction. He said Petrobras does not want to operate with excess cash, but added that extraordinary dividends would only be considered if investment needs and debt targets are satisfied. “We don’t believe there’s any possibility for that this year,” he said, citing uncertainty and oil-price volatility. Chambriard said Petrobras is evaluating potential opportunities in Mexico, including a possible partnership with Pemex in the Mexican portion of the Gulf of Mexico. She said discussions are at an early stage and include exploration, mature-field operations, refining, gas processing and potential petrochemical synergies. She also said Petrobras is interested in becoming more active in Braskem, where it holds 46% to 47% of voting shares. Chambriard said Petrobras had been “basically absent” from Braskem in recent years and now wants to participate more strongly because of potential synergies with refining, gas and petrochemicals. Melgarejo said Petrobras does not intend to consolidate Braskem’s debt and expects to remain a minority shareholder. He said Petrobras and IG4 are evaluating operations, logistics, trading and refinery synergies during a transition period following the signing of a shareholder agreement. Chambriard closed the call by saying Petrobras remains focused on capital discipline, governance and profitable growth. “Petrobras is a strong cash generator,” she said, adding that the company intends to continue strengthening free cash flow while serving shareholders and Brazilian society. Petróleo Brasileiro SA – Petrobras is a Brazilian, state-controlled integrated oil and gas company headquartered in Rio de Janeiro. Founded in 1953, Petrobras is principally engaged in the exploration and production of crude oil and natural gas, and operates across the full value chain from upstream activities through refining, transportation and downstream marketing of petroleum products. The company is a major player in Brazil's energy sector and is a listed public company with global capital market presence. Petrobras's core activities include deepwater and ultra-deepwater exploration and production, where it has been a pioneer in developing pre-salt reserves off Brazil's coast. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Petroleo Brasileiro S.A.- Petrobras Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Oil Production: 2.58 million barrels per day in Q1 2026; 2.73 million barrels per day in April 2026, a 6% increase from Q1 average. Pre-salt Oil Production: 2.18 million barrels per day from the pre-salt layer. Refinery Utilization: 97.4% in March 2026, highest since December 2014. S10 Diesel Production: Record 512,000 barrels per day in March 2026. EBITDA: USD 11.7 billion, excluding onetime items. Net Income: USD 4.5 billion, excluding onetime items. Operating Cash Flow: USD 8.4 billion in Q1 2026. Gross Debt: USD 71.2 billion, with a target of USD 67 billion by 2026. CapEx: USD 5 billion in Q1 2026, with 90% allocated to E&P projects. Tax Payments: BRL 72.4 billion total in Q1 2026. Warning! GuruFocus has detected 6 Warning Signs with PBR. Is PBR fairly valued? Test your thesis with our free DCF calculator. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Petroleo Brasileiro SA Petrobras (NYSE:PBR) achieved record oil and gas production levels, reaching 2.58 million barrels per day in Q1 2026, with further increases in April. The company successfully expanded the capacity of its FPSO Almirante Tamandare oil rig, increasing production by 45,000 barrels per day. Petrobras invested $5 billion in Q1 2026, with nearly 90% allocated to exploration and production projects, focusing on high-return investments. The company achieved a record high production of S10 diesel, producing 512,000 barrels per day in March, reflecting successful refinery modernization efforts. Petrobras maintained a strong financial position with an EBITDA of USD11.7 billion and a net income of USD4.5 billion, driven by higher production volumes. The rise in Brent prices was not fully reflected in Q1 2026 results, as the price surge began in March, affecting future earnings visibility. Petrobras faced challenges with a backlog of exports amounting to around 80,000 barrels per day, impacting immediate earnings. The company experienced a slight increase in gross debt, closing the quarter with USD71.2 billion, though the trend is expected to be downward. Petrobras is dealing with price volatility in the international market, impacting its pricing strategy for diesel and gasoline in Brazil. The company is navigating geopolitical conflicts affecting global supply and price pressures, which could impact future operational and financial performance. Q: Can you provide insights into the downstream market and the potential for price adjustments in diesel and gasoline? A: Magda Chambriard, CEO, explained that Petrobras is monitoring international price volatility and aims to shield Brazilian consumers from abrupt changes. The company has received government subsidies to manage diesel prices and is considering similar measures for gasoline, which competes with ethanol in Brazil. Angelica Laureano, Chief Logistics Officer, added that there is no risk of structural shortages in the market. Q: How is Petrobras managing the impact of subsidies on working capital and cash flow? A: Fernando Sabbi Melgarejo, CFO, stated that subsidies are accounted for in receivables and expected to be paid within the quarter. The company is operationalizing diesel subsidies, which will positively impact working capital and cash flow. Q: What are Petrobras' plans regarding potential investments in Mexico and Venezuela? A: Magda Chambriard, CEO, mentioned that Petrobras is exploring partnerships with Pemex in Mexico for oil and gas exploration and production. However, these discussions are in the early stages, and no specific investment values can be quantified yet. Venezuela is also on the radar, but similarly, it remains a potential opportunity rather than a concrete plan. Q: How does Petrobras plan to adjust its CapEx in response to the current oil price scenario? A: Fernando Sabbi Melgarejo, CFO, emphasized that while Petrobras is prepared to adjust investments based on long-term perspectives, the company remains committed to capital discipline. The focus is on high-return projects, and any adjustments will be made with a view to enhancing company value. Q: What is Petrobras' strategy regarding Braskem and its role in the petrochemical sector? A: Fernando Sabbi Melgarejo, CFO, highlighted Petrobras' intention to be more actively involved in Braskem, leveraging synergies with its refining and gas operations. The company aims to strengthen its role in Braskem without consolidating debt, focusing on operational synergies and strategic partnerships. For the complete transcript of the earnings call, please refer to the full earnings call transcript.