PBR · Petróleo Brasileiro S.A. - Petrobras

Petrobras delivered consistent 1Q26 results with Adjusted EBITDA excluding one-off events of US$11.7 billion, up 7.3% from 4Q25, driven by higher sales of locally-produced oil products, lower operating expenses including reduced exploration costs, and strong operational performance with record oil and gas production up 3.7% from prior quarter. Net income excluding one-off events was US$4.5 billion, down slightly by 4.5% due to factors partially offset by real appreciation against the dollar. Including one-off events like FX gains of US$2.3 billion and impairment reversals, GAAP net income reached US$6.2 billion. Sales revenues were stable at US$23.5 billion despite higher Brent at US$80.61/bbl, as recent price increases and higher production volumes will reflect in 2Q26 revenues due to export pricing lags based on prior month quotations, especially for Asian markets. Operating cash flow of US$8.4 billion supported free cash flow of US$3.9 billion after US$4.5 billion cash capex, primarily in E&P projects like Búzios and Sépia fields. Total capex of US$5.1 billion decreased 19% from 4Q25 but rose 26% year-over-year, with 87% allocated to E&P including progress on FPSO P-79 startup on May 1, 2026, adding 180 Mbpd capacity and gas supply potential. Balance sheet remains solid with net debt at US$62.1 billion and leverage at 1.43x LTM Adjusted EBITDA. Management highlighted asset performance and value generation strategy, approving R$9.0 billion shareholder remuneration. One-off events, netting positive US$1.7 billion after tax to net income, included FX gains from real strengthening but also legal losses and export taxes.