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.
Production Records and Additional Capacity
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. 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.
Refining, Exports and Financial Results
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.
Debt, Capital Allocation and Refinery Maintenance
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.
Exploration, International Opportunities and Braskem
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.
About Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR)
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.
