Petrobras Brasileiro Q2 2026 Earnings Call Transcript

Petrobras Brasileiro (NYSE: PBR ) released second-quarter financial results and hosted an earnings call on Friday. Read the complete transcript below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

The full earnings call is available at Summary Petrobras Brasileiro reported record financial results for Q2 2026, achieving the highest net and gross profits in its history, driven by strong operational performance and not reliant on asset sales. 7 million barrels per day, surpassing goals by 200,000 barrels, with efficiency improvements and accelerated project ramp-ups contributing significantly. The company increased oil exports by 12% and reduced diesel imports by 40%, supported by refinery utilization surpassing 100%. 4 billion over two quarters, emphasizing high-return projects and strategic international expansions.

Future guidance suggests continued focus on achieving production goals, with potential challenges related to logistics costs and exchange rate impacts. Petrobras Brasileiro continues to explore new international opportunities, particularly in South America and Africa, while maintaining a strong focus on domestic projects. Management reiterated a commitment to capital discipline, with strategic plans to deploy cash flow towards growth investments and debt reduction. Full Transcript OPERATOR Good afternoon and welcome to Petrobras webcast with analysts and investors about our second quarter 2026 results.

It's a pleasure to have you with us today. This event will be presented in Portuguese with simultaneous interpretation into English. Links for both languages are available on our investor relations website. All participants will follow the webcast online in listen-only mode, and after our introduction, we will hold a Q and A session.

Joining us today are Magda Chambriard, the President of Petrobras; Angelica Loriano, Executive Officer for Logistics, Commercialization and Market; Clarice Capechi, Executive Officer for Corporate Affairs; Fernando Melgarejo, Chief Financial and Investor Relations Officer; Renata Baruzzi, Executive Officer for Engineering, Technology and Innovation; Ricardo Wagner, Chief Governance and Compliance Officer; Sylvia Anjos, Chief Exploration and Production Officer; William Francer, Chief Industrial Processes and Products Officer; and William Nozaki, Acting Executive Officer for Energy Transition and Sustainability.

To begin with, I will hand it over to our President, Magda Chambriard, for her remarks. President, please go ahead. Magda Chambriard, President Good morning everyone. It's a pleasure to be with you today to demonstrate once again Petrobras capacity to surpass its goals and deliver impressive results to our investors, be they from the public or private sectors.

We have the full board of Petrobras with us and I'd like to take the opportunity to greet all investors, all of the representatives of our investors, all of the executives that are in this session with us and our partners, and everybody that joined us remotely for the disclosure of our second quarter 2026 results. Also, I'd like to greet everybody from the press joining us. We become increasingly prouder of our results. It's a pleasure to be here once again, joined by you, to once again present another result that surpassed the previous ones.

A result of our intensive work with our diverse teams working in a partnership to deliver an increasing amount of oil, gas and byproducts with security, quality, efficiency and capital discipline. In the first quarter of 2026, we reached several records and in the second quarter we surpassed them with important milestones. Once again we reached—and I must highlight this—the highest net profit on a recurring basis for the quarter in dollars in the history of Petrobras. This recurring profit excludes one-off events, and it's also the highest gross profit in the history of Petrobras.

And we're proud to say that we achieved those results with no sales of assets. Of course, a Brent above US$100 per barrel strengthened our results. But the highest results achieved are the ones that we will go over now. The recurring result was not with history's highest Brent—we had over 10 quarters with oil prices above that in the past—and nonetheless we achieved the highest recurring results in terms of net profits in the history of Petrobras.

Our key differentiator, which we're proud of, is operational administration, which is shared with the company's several different departments: operational records in terms of the production of oil, gas, refining and selling of products. That's been our commitment. 7 million barrels of oil per day. In addition to gas, if we consider in equivalent barrels of oil, it was more than 3 million barrels per day.

We can't promise that we will surpass our goal, but I guarantee that we've always worked towards that—surpassing our goals. 5 million barrels per day. We surpassed the goal of the second quarter by 200,000 barrels of oil per day. That's due, among other factors, to increased efficiency in the production of platforms and also by pushing forward the delivery of projects.

You probably remember that we pushed forward the delivery and the ramp-up of P-78 as well as the delivery and the ramp-up of P-79. Other platforms will come. Some of them are already arriving this year. And once again I'm going to repeat that: we will move forward the delivery of big projects with greater volumes.

We also increased our oil export levels with an additional 12% in this quarter. And these sales become greater revenue and cash generation. And here I must make a side note. The highlight, in addition to the work involved in production and the engineering work involved in these projects, the participation of refining—by refining and teaching our buyers to further and further refine our oil and to further value our product—and also with the participation of logistics at Petrobras, with the intent of broadening the market for our end product, which is oil, was impressive.

And once again it was these events and the joint work of all departments of Petrobras, dedicated to the same purpose and the same goal, that allowed us to achieve these great results. Our bigger generation of revenue and cash flow will be used to fund our investments and safely prepare us for the future of the company. The cash flow that's being generated today will be used to fund Petrobras Brasileiro's growth. And I like to say that just like the company was successful in its first 72 years, we are preparing the company to successfully take on the following 72 years.

The refining teams, in addition to production and engineering, did a great job. The utilization factor of our refineries surpassed 100% in the second quarter of 2026. And here at the company we got into the habit of saying that goals are for the weak of heart. Petrobras is proud to always surpass its goals.

We've increased the processing, maintaining the same diesel yield and gasoline, which is equivalent to greater revenue for Petrobras and a greater value to our shareholders, be they public or private, without losing sight of capital discipline. The production of byproducts grew 6% vis-à-vis the previous quarter. And with that we were able to reduce imports by 40%, especially those of diesel. We do what we have to do; we are doing it.

We've elevated operating efficiency and we've produced in a way beyond the original capacity in seven platforms. We've also increased the utilization factor of refineries as a whole. Of course, with safety first. The Brent price and the exchange rate are not things we can control.

We don't know where they'll go. And that's why we invest with capital discipline, prioritizing projects of high returns. All of our investments involve rigorous governance for approval to verify the attractiveness and the return for our shareholders, be they from the public or private sector, and at the same time to deliver value to society—once again, be they comprised by our public or private shareholders. And respect to governance—we need to reiterate that every day—is a pillar of our administration.

We will continue focusing on our business plan, which is well known to all of you, with the commitment to deliver to society a Petrobras that's profitable and absolutely relevant to our country. I will now give the floor to our CFO, Fernando Melgarejo, who will dive into the details of the second quarter of 2026. And I want to thank you for listening to us. Thank you all for your presence.

Fernando Sabbi Melgarejo, Diretor Financeiro e de Relacionamento com Investidores Thank you, President. Good morning everyone. Thank you for joining us for this webcast for the results of the second quarter of 2026. I also want to greet everybody that's here at the headquarters of the company.

And as we said, we had a quarter of record operating performance which drove Petrobras to one of its best financial results in history, which are deeply anchored in the good operating performance. And once again I have to highlight that that was a major step forward where we were able to manage and also at the same time we are able to evolve in the best possible manner, which is one of the highlights of this administration. The search for increased oil production, production efficiency, accelerated ramp-ups that are also part of the records that we've been bringing to the company. If it were not for that, we wouldn't have achieved the financial records.

Financial records are firmly anchored in the operating records of the company. Now let's move forward to Slide 3. 7 million barrels per day, 15% increase over 12 months, which is equivalent to 350,000 additional barrels. If we compare this period to the same previous period, approximately three platforms producing additionals in only one year.

And as a reminder, last year we also had records. In the third quarter it was an additional 4%. And that's quite relevant. And we were always wondering where we would get to, and now we can demonstrate with our production that we are reaching our goals, surpassing some indicators as well.

The FPSO Alexandre de Gusmão, for instance, at the Mero field is producing 100,000 barrels, and P-78 at Búzios 120,000. And both have the capacity to produce 180,000 barrels per day. That is to say that we have a greater capacity to achieve. In addition to the record-breaking capacity, we still have some room to cover.

When they're at the nominal capacity, we'll add another 90,000 barrels per day. And we also have the ramp-up of P-79, as I said, which started operations in May this year and has a capacity of 180,000 barrels. 7 million barrels of oil per day, we still have 270,000 barrels per day of capacity to ramp up in the second half. Another highlight has been the increase in production of certain platforms beyond their nameplate capacities.

The Almirante Tamandaré FPSO in Búzios has an original capacity of 225,000 barrels, which makes it a large-scale platform, and the unit has reached a peak production of 270,000 barrels per day and is currently the highest-producing platform in Brazil. It's a huge platform in a huge field with a very positive potential for the next years. In addition to Almirante Tamandaré, we have another six platforms adapted to operate above their original capacity. Today this additional capacity already totals more than 100,000 barrels per day—practically a new platform, mid-sized or large-sized platform.

And we're working to continue to expand this potential. The important thing is that we are increasing production safely, and we're doing that without the need for additional construction work, which allows us to increase revenue and cash flow immediately, without the need for any additional investment. So it's only revenue without any investment, which is quite positive. Now, before moving over to the next slide, I'd like to highlight important news from this week.

We announced a new gas discovery in Colombia, which confirms the region's gas potential. Now, this is a project which is aligned with our long-term strategy, which seeks to replenish reserves through exploration across new frontiers. So this doesn't mean that Brazil is not our priority. Brazil still is our focus, but we are an international company, so we need to look across our borders as well.

So let's finally move on to Slide 4, talking about CapEx. 1 billion. 4 billion over two quarters here at Petrobras Brasileiro. More than 80% of that investment, in fact 82%, is focused on E&P projects, focusing on increasing production with high returns for the company.

We have a few examples here. Versus the previous quarter, we increased well drilling by 40% and 45% in well completions. Interconnections also increased by 43% driven by the ramp-up of Búzios 6 and Búzios 8, as well as complementary wells, which helped to maximize the production for each production unit. Part of the investment was also allocated to advancing the construction of new platforms in Búzios, such as P78, P82, and P83.

These are all huge platforms, each with nameplate capacity of 225,000 barrels. These are projects which offer high returns and rapid cash generation. And with P78 we also expect—rather, P80—we expect to hear positive news with regards to moving ahead of schedule, much like what happened to P79. So now over to Slide 5, talking a little about our products and refining.

We hit a record refinery utilization with a 101% FUT, increasing production by 68% of the yield mix in higher value-added products. In April and May we came to about 102% FUT, a record for the company. We'd been working with very low FUT rates. And another important point: usually when FUT increases, that's because we're focusing on lower value-added products.

But in this case we continue to see the same shares for higher value-added products with diesel, jet fuel, and gasoline, which makes these even more effective refineries. As a result, we expanded the supply of our own products and reduced the need for imports, especially diesel, which we still need to import. We're essentially self-sufficient in terms of gasoline, and that's all because we have produced more. We also increased oil product output by 6% and reduced our imports by 40% versus the previous quarter.

Again, this increases even more the company's efficiency and cash flow. Another factor with a positive impact for us were our imports. Even though we were processing more, oil production was so much higher that refining has increased, and our exports of Brazilian products also increased. We were already seeing high exports in the second quarter, but they increased even more in Q3.

My apologies, we just heard something from our civil defense so we had to interrupt. But just jumping in now, we saw an increase by 12% in exports for the company and reached very significant increases in our exports of oil, which improved our cash flow even more. Moving over to the following slides, Slide 6, a little bit about our financial results. We can see our EBITDA and net profit.

All of these operating records led us to one of the best results in Petrobras Brasileiro history in terms of finances, in terms of recurring net income and gross profit. As our President has already said, these were record-breaking figures. Brent prices were some of the highest, excluding obviously all the one-off events. Brent prices were above $104 but, as the President has already said, this was not the highest Brent price we've ever seen, not even among the 10 highest, which also shows that our operating efficiency was very positive.

Even so, we achieved adjusted EBIT excluding one-off events of 20 billion this quarter, which was 70% higher than in the previous quarter and nearly doubled the figure from 12 months ago. 5 billion for the quarter, the highest in the company's history—so another record-breaking figure. All of that, as we keep repeating, anchored in our stupendous operating performance, which is what is making the difference. 3 billion for the quarter, growth of nearly 50% when compared with the previous quarter.

So these are very strong results, and I therefore emphasize: we did not have record Brent prices, but we did have record production, which drove our financial results this quarter. Now moving over to Slide 7, a little bit about our debt. This year we carried out a very important initiative to renegotiate contracts for charters and well services, constantly monitoring the market to identify opportunities such as this one. The result is expected to generate an estimated cash flow savings of over 1 billion over the 2026—2035 period, reducing our debt by over 400 million by 2030.

This will lead to a significantly lower cash flow for the company, which will allow us to reach our goals. Now, because the amendments extending the contract terms were signed in the second quarter, we had to reorganize the value of these contracts and lease liabilities immediately. So these increased in the short term, but we reduce our future disbursements and cash flow, creating value. And that's the key benefit.

And that's how it has to work.