Petroleo Brasileiro S.A.- Petrobras Q2 Earnings Call Highlights

Petroleo Brasileiro S.A.- 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. 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. 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. Petroleo Brasileiro S.A.- Petrobras 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. “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. 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. 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.