Q2 FY2026
Filed Aug 7, 2026Operational records, higher production and higher Brent prices drove Petrobras to one of its highest quarterly financial results, with US$ 33,607 million in sales revenues and US$ 10,428 million in net income attributable to shareholders.
Sales revenues, gross profit, operating cash flow, free cash flow, adjusted EBITDA and net income all increased substantially both sequentially and year over year. E&P performance and exports led the quarter, while leverage declined despite elevated investment and shareholder distributions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales revenues - 2Q26other | US$ 33,607 million | 42.8% | 59.8% |
| Gross profit - 2Q26other | US$ 19,493 million | 71.9% | 94.7% |
| Operating expenses - 2Q26other | US$ (5,240) million | 50.1% | 12.4% |
| Operating income - 2Q26other | US$ 14,253 million | – | – |
| Net income - 2Q26other | US$ 10,438 million | 67.9% | 119.4% |
| Consolidated net income attributable to the shareholders of Petrobras - 2Q26other | US$ 10,428 million | 68.2% | 120.3% |
| Net income excluding one-off events attributable to the shareholders of Petrobras - 2Q26non-GAAP | US$ 11,073 million | 144.2% | 170.0% |
| Adjusted EBITDA - 2Q26non-GAAP | US$ 18,615 million | 64.0% | 101.4% |
| Adjusted EBITDA excluding one-off events - 2Q26non-GAAP | US$ 19,959 million | 70.1% | 95.1% |
| Adjusted EBITDA margin - 2Q26non-GAAP | 55% | 7.0 | 11.0 |
| Net cash provided by operating activities - 2Q26other | US$ 12,250 million | 45.9% | 62.7% |
| Free cash flow - 2Q26non-GAAP | US$ 7,659 million | 98.7% | 122.3% |
| Total Capex - 2Q26other | US$ 5,299 million | 3.8% | 19.6% |
| Gross debt - June 30, 2026other | US$ 70,806 million | (0.6)%ართველ | 4.0% |
| Net debt - June 30, 2026non-GAAP | US$ 60,388 million | (2.7)% | 3.1% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Exploration and ProductionHigher Brent prices and increased production drove gross profit and sales revenues. | US$ 22,785 million | 42.4% | 58.2% |
| Refining, Transportation and MarketingHigher international prices and larger export volumes reflecting higher oil production drove sales revenues. | US$ 32,351 million | 45.1% | 63.4% |
| Gas and Low Carbon EnergiesThe quarterly price adjustment in natural gas contracts reflected higher Brent prices. | US$ 2,406 million | 9.1% | 10.6% |
Capital returns
- R$ 17.4 billion in shareholder remuneration related to 2Q26 was approved.
- Dividends paid to shareholders of Petrobras were US$ 1,511 million in 2Q26.
- Dividends paid to non-controlling interests were US$ (8) million in 2Q26.
What drove it
- Total production increased 3.4% in 2Q26, supported by ramp-up of systems, start-up of P-79 and efficiency gains.
- Brent crude averaged US$ 104.52/bbl in 2Q26, compared with US$ 80.61/bbl in 1Q26 and US$ 67.82/bbl in 2Q25.
- Refining utilization factor was 101.2%, oil products output increased 5.6% compared with the previous quarter, and yield of higher value-added products was 68%.
- Exports were US$ 12,665 million, up 66.6% from 1Q26 and 123.0% from 2Q25. Crude-oil exports were US$ 10,381 million.
- E&P adjusted EBITDA was US$ 15,874 million, up 54.0% from 1Q26 and 77.0% from 2Q25.
- E&P lifting cost in Brazil was US$ 6.33/boe, down 6.3% from 1Q26.
- P-79 started up in the Búzios field in May 2026 and has production capacity of 180 thousand barrels of oil per day.
Concerns
- Operating expenses were US$ (5,240) million, up 50.1% from 1Q26, principally including higher other taxes.
- One-off events were US$ (1,015) million in 2Q26, including US$ (965) million for export tax on crude oil and diesel.
- 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 was US$ 2,809 million, down 20.2% from 1Q26, as higher selling expenses and crude-oil export taxes outweighed higher gross profit.
- The BRL appreciated 4% against the USD in 2Q26, negatively affecting E&P lifting costs and refining cost per barrel.
What to watch
- The progress of Búzios projects, including production systems P-80, P-82 and P-83 scheduled for 2027, P-84 scheduled for 2029, and P-85 scheduled for 2030.
- Execution of US$ 10,405 million of 1H26 total Capex, including US$ 8,800 million in Exploration & Production.
- The trajectory of receivables related to the fuel subsidy program and the associated working-capital impact.
- The impact of crude-oil export taxes, which totaled US$ (965) million as a 2Q26 one-off event.
- Whether RTM profitability recovers as freight costs, selling expenses and export-related taxes develop.
Balance sheet and cash flow
- Cash and cash equivalents at the end of period were US$ 6,483 million.
- Adjusted cash and cash equivalents at the end of period were US$ 10,418 million.
- Gross debt was US$ 70,806 million as of June 30, 2026, compared with US$ 71,214 million as of March 31, 2026.
- Net debt was US$ 60,388 million as of June 30, 2026, compared with US$ 62,093 million as of March 31, 2026.
- Net debt/LTM Adjusted EBITDA ratio was 1.14, compared with 1.43 in 1Q26.
- Gross debt/LTM Adjusted EBITDA ratio was 1.34x, compared with 1.64x as of March 31, 2026.
- Net cash used in investing activities was US$ (5,705) million in 2Q26.
- Net cash used in financing activities was US$ (6,682) million in 2Q26.
Analysis
Petrobras reported a strong second quarter under IFRS Accounting Standards. Sales revenues were US$ 33,607 million, up 42.8% from 1Q26 and 59.8% from 2Q25. Gross profit reached US$ 19,493 million, while net income attributable to Petrobras shareholders was US$ 10,428 million. Adjusted EBITDA was US$ 18,615 million and adjusted EBITDA excluding one-off events was US$ 19,959 million. Management attributed the result to higher production, higher Brent prices, higher exports and recognition of exports that were in transit during 1Q26.
E&P was the principal earnings contributor. Segment sales revenues were US$ 22,785 million and adjusted EBITDA was US$ 15,874 million. Production increased 3.4%, and the start-up of P-79 in May 2026 added a production system with capacity of 180 thousand barrels of oil per day. E&P lifting cost in Brazil was US$ 6.33/boe, down 6.3% sequentially, aided by higher pre-salt production and lower post-salt well-intervention costs. Brent averaged US$ 104.52/bbl, compared with US$ 80.61/bbl in 1Q26.
RTM sales revenues increased to US$ 32,351 million, supported by higher international prices and export volumes. The 101.2% refining utilization factor and 68% higher-value product yield increased domestic product supply and reduced imported-product resale. However, RTM operating income fell 20.2% sequentially to US$ 2,809 million as freight-driven selling expenses, crude-oil export taxes and the prior-quarter UFNIII impairment reversal affected the comparison. G&LCE also improved, with sales revenues of US$ 2,406 million and adjusted EBITDA of US$ 419 million, supported by natural-gas contract price adjustments tied to higher Brent prices.
Cash generation was substantial, with US$ 12,250 million of operating cash flow and US$ 7,659 million of free cash flow. The company spent US$ 5,299 million on total Capex and paid US$ 1,511 million in dividends to Petrobras shareholders. Gross debt declined to US$ 70,806 million and net debt declined to US$ 60,388 million from 1Q26, reducing the net debt/LTM adjusted EBITDA ratio to 1.14. Operating cash flow nevertheless absorbed US$ 3.2 billion of adverse working-capital effects, including higher receivables related to the fuel subsidy program.
The release does not provide formal quantitative guidance. The principal reported near-term factors are continued production-system ramp-up, execution of the E&P-led investment program, movements in Brent prices, export volumes, export taxes and working-capital movements. One-off events reduced reported net income, notably US$ (965) million of export tax on crude oil and diesel, while net income excluding one-off events attributable to Petrobras shareholders was US$ 11,073 million.
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- GAAP or IFRS earnings per share
- Gross margin
- Formal forward revenue guidance
- Formal forward gross-margin guidance
- Formal forward operating-expense guidance
- Formal forward tax-rate guidance
- Share-repurchase activity
- Prior-release outlook for comparison
AlphAI 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.