2Q26
Filed Aug 7, 2026Operational records, higher production and higher Brent prices drove Petrobras' 2Q26 financial results and cash generation.
Sales revenues, gross profit, consolidated net income, operating cash flow, free cash flow and Adjusted EBITDA all increased versus 1Q26 and 2Q25. Higher production, exports, Brent prices and refinery utilization supported the result, while higher export taxes, working-capital effects and lower foreign-exchange gains tempered reported earnings and cash flow.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales revenuesother | US$ 33,607 million | 42.8% | 59.8% |
| Cost of salesother | US$ (14,114) million | 15.7% | 28.0% |
| Gross profitother | US$ 19,493 million | 71.9% | 94.7% |
| Operating expensesother | US$ (5,240) million | 50.1% | 12.4% |
| Operating incomeother | US$ 14,253 million | – | – |
| Net incomeother | US$ 10,438 million | 67.9% | 119.4% |
| Consolidated net income attributable to the shareholders of Petrobrasother | US$ 10,428 million | 68.2% | 120.3% |
| Consolidated net income excluding one-off events attributable to the shareholders of Petrobrasnon-GAAP | US$ 11,073 million | 144.2% | 170.0% |
| EBITDAnon-GAAP | US$ 18,619 million | 55.6% | 104.8% |
| Adjusted EBITDAnon-GAAP | US$ 18,615 million | 64.0% | 101.4% |
| Adjusted EBITDA excluding one-off eventsnon-GAAP | US$ 19,959 million | 70.1% | 95.1% |
| Adjusted EBITDA marginnon-GAAP | 55% | 7.0 | 11.0 |
| Net cash provided by operating activitiesother | US$ 12,250 million | 45.9% | 62.7% |
| Free cash flownon-GAAP | US$ 7,659 million | 98.7% | 122.3% |
| Total Capexother | US$ 5,299 million | 3.8% | 19.6% |
| Cash and cash equivalentsother | US$ 6,483 million | – | – |
| Adjusted cash and cash equivalentsnon-GAAP | US$ 10,418 million | – | 14.2% |
| Gross debtother | US$ 70,806 million | (0.6) | 4.0% |
| Net debtnon-GAAP | US$ 60,388 million | (2.7) | 3.1% |
| Net debt/LTM Adjusted EBITDA rationon-GAAP | 1.14 | (20.3) | (25.5) |
| ROCE (Return on Capital Employed)non-GAAP | 9.3% | 2,6 p.p. | 3,3 p.p. |
| Brent crudeother | US$ 104.52/bbl | 29.7% | 54.1% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Exploration and ProductionHigher Brent prices and increased production. Progress in system ramp-ups, the P-79 start-up and efficiency gains supported production; lower Post-Salt costs and higher Pre-Salt production reduced lifting cost. | US$ 22,785 million | 42.4% | 58.2% |
| Refining, Transportation and MarketingHigher international prices and larger export volumes reflecting higher oil production. The refining utilization factor increased, supporting higher oil-products production and a lower need for imported product resale. | US$ 32,351 million | 45.1% | 63.4% |
| Gas and Low Carbon EnergiesQuarterly natural-gas contract price adjustment reflecting higher Brent prices. | US$ 2,406 million | 9.1% | 10.6% |
Capital returns
- We approved R$ 17.4 billion in shareholder remuneration related to the 2Q26.
- Dividends paid to shareholders of Petrobras: US$ (1,511) million.
- Dividends paid to non-controlling interests: US$ (8) million.
What drove it
- Total production increased 3.4% in 2Q26, supported by ramp-ups, the start-up of P-79 and efficiency gains.
- Refining utilization factor was 101.2%, with oil-products output increasing 5.6% compared to the previous quarter and a 68% yield of diesel, jet fuel and gasoline.
- Exports were supported by higher production and recognition in 2Q26 of exports that were in transit during 1Q26.
- The larger share of produced oil products in the sales mix reduced the need for oil-products imports.
- Average Brent crude was US$ 104.52/bbl, versus US$ 80.61/bbl in 1Q26 and US$ 67.82/bbl in 2Q25.
- E&P lifting cost in Brazil was US$ 6.33/boe, versus US$ 6.76/boe in 1Q26.
- RTM gross profit benefited from inventories built at lower Brent prices.
- Natural-gas contract price adjustments reflected higher Brent prices.
Concerns
- Net income was partially offset by higher tax expense, especially taxes on crude oil exports, and lower FX gains.
- Other taxes were US$ (1,184) million, versus US$ (474) million in 1Q26.
- Operating cash flow was negatively impacted by working-capital effects amounting to US$ 3.2 billion, mainly higher accounts receivable including US$ 1.9 billion related to the fuel subsidy program, and US$ 0.8 billion of lower trade payables.
- RTM operating income declined 20.2% from 1Q26 despite higher gross profit, reflecting higher selling expenses, higher crude-oil export taxes and the prior-quarter UFNIII impairment reversal.
- The BRL appreciated 4% against the USD in 2Q26, negatively affecting E&P and refining cost per barrel comparisons.
What to watch
- Progress of production systems including Búzios 9 P-80, Búzios 10 P-82, Búzios 11 P-83, Atapu 2 P-84 and Sépia 2 P-85.
- E&P production development Capex, which was US$ 3,387 million in 2Q26.
- Crude-oil export volumes, which supported total foreign-market revenues of US$ 12,914 million.
- Road-use diesel subsidy program revenue of US$ 1,923 million and related receivables.
- Working-capital effects on operating cash flow, including trade receivables and trade payables.
- Gross debt, net debt and the net debt/LTM Adjusted EBITDA ratio.
Balance sheet and cash flow
- Cash and cash equivalents at the end of period: US$ 6,483 million.
- Adjusted cash and cash equivalents at the end of period: US$ 10,418 million.
- Gross debt: US$ 70,806 million.
- Net debt: US$ 60,388 million.
- Net cash provided by operating activities: US$ 12,250 million.
- Net cash used in investing activities: US$ (5,705) million.
- Net cash used in financing activities: US$ (6,682) million.
- Acquisition of PP&E and intangible assets: US$ (4,559) million.
- Acquisition of equity interests: US$ (32) million.
- Free cash flow: US$ 7,659 million.
- Financial debt: US$ 25,834 million.
- Finance leases: US$ 44,972 million.
- Weighted average maturity of outstanding debt: 11.92 years.
- Average interest rate: 6.8% per year.
Analysis
Petrobras reported a strong 2Q26, with sales revenues of US$ 33,607 million, gross profit of US$ 19,493 million and consolidated net income attributable to shareholders of US$ 10,428 million. Sales revenues increased 42.8% versus 1Q26 and 59.8% versus 2Q25. Gross profit increased 71.9% versus 1Q26, while Adjusted EBITDA increased 64.0% to US$ 18,615 million. Adjusted EBITDA excluding one-off events was US$ 19,959 million, up 70.1% versus 1Q26.
The operating backdrop was led by a 3.4% increase in total production, progress in system ramp-ups, the start-up of P-79 and higher Brent prices. Average Brent was US$ 104.52/bbl. E&P sales revenues were US$ 22,785 million and segment Adjusted EBITDA was US$ 15,874 million. E&P lifting cost in Brazil declined to US$ 6.33/boe from US$ 6.76/boe in 1Q26, supported by lower Post-Salt costs and higher Pre-Salt production. The Pre-Salt share of total equivalent oil and gas production increased from 82% in 1Q26 to 83% in 2Q26.
RTM benefited from higher international prices, larger export volumes and refinery execution. RTM sales revenues increased to US$ 32,351 million, while a 101.2% utilization factor and a 68% yield of higher-value products supported production and reduced imported-product resale. RTM gross profit rose to US$ 5,185 million, but operating income fell to US$ 2,809 million as higher selling expenses, freight costs and crude-oil export taxes more than offset the gross-profit improvement. G&LCE sales revenues increased to US$ 2,406 million, with higher natural-gas prices linked to the quarterly contract adjustment.
Cash generation was substantial, with operating cash flow of US$ 12,250 million and free cash flow of US$ 7,659 million. Capex was US$ 5,299 million, including US$ 4,337 million in E&P. Petrobras used cash generation and funding to invest, amortize finance debt and lease liabilities, and remunerate shareholders. Gross debt was US$ 70,806 million and net debt was US$ 60,388 million at June 30, 2026; the net debt/LTM Adjusted EBITDA ratio declined to 1.14 from 1.43 at March 31, 2026.
Reported earnings included pressure from higher export-related taxes and lower FX gains. Net income excluding one-off events attributable to Petrobras shareholders was US$ 11,073 million, above the reported attributable result of US$ 10,428 million. Operating cash flow also absorbed US$ 3.2 billion of working-capital effects, particularly receivables related to the fuel subsidy program and lower trade payables. The filing provided no forward financial guidance.
Management, verbatim
The operational records we achieved in this second quarter led to one of Petrobras’ highest quarterly financial results in our time series. The increase in oil and oil products output, alongside higher Brent prices, strengthened our cash generation.
Fernando Melgarejo, Chief Financial Officer and Investor Relations Officer
Not in the filing
stated, not guessed- Diluted EPS and basic EPS were not reported.
- GAAP or IFRS gross margin was not reported.
- Forward revenue guidance was not reported.
- Forward gross-margin guidance was not reported.
- Forward operating-expense guidance was not reported.
- Forward tax-rate guidance was not reported.
- Prior-release outlook was not provided.
- A quarterly total-production volume was not reported.
- A share-repurchase amount or authorization was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.