Petrobras Reports Q1 Profit Decline Amid Strong Oil Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: seekingalpha
- Profit Decline: Petrobras reported a Q1 net profit of 32.66 billion reais (～$6.68 billion), down 7.8% from 35.21 billion reais a year earlier, indicating challenges in profitability despite strong oil prices.
- Revenue Growth Weakness: Q1 net revenues edged up 0.4% to 123.69 billion reais, falling short of the 136.08 billion reais forecast, reflecting increased reliance on exports as domestic sales dropped by 9.4%.
- Production Capacity Increase: Oil production rose 3.2% to 2.583 million bbl/day compared to the previous quarter, with pre-salt production increasing by 3.5% to 2.189 million bbl/day, demonstrating efforts to enhance production capacity amid market volatility.
- Future Outlook: Petrobras anticipates that the surge in oil prices in Q2 will positively impact future performance, although the inability to fully reflect the price increases in Q1 results may lead to short-term market disappointment.
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Analyst Views on PBR
Wall Street analysts forecast PBR stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 18.830
Low
13.30
Averages
15.15
High
17.00
Current: 18.830
Low
13.30
Averages
15.15
High
17.00
About PBR
Petroleo Brasileiro S.a. Petrobras is a Brazil-based government agency. The Company specializes in the oil, natural gas and energy industry. Petrobras has three operational segments: Refining, Transportation, and Marketing (R&M), which encompasses the activities of refining, logistics, transportation, acquisition and export of crude oil, as well as the purchase and sale of petroleum-derived products, in Brazil and abroad; Exploration and Production (E&P), which encompasses the activities of exploration, production development and production of oil, natural gas liquids (NGL) and natural gas, as well as Gas and Low Carbon Energy (G&EBC), which encompasses logistics activities, natural gas and electricity trading, transportation and marketing of liquefied natural gas (LNG), power generation through thermal power plants, as well as the results of natural gas processing operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth Weakness: Q1 net revenues edged up 0.4% to 123.69 billion reais, falling short of the 136.08 billion reais forecast, reflecting increased reliance on exports as domestic sales dropped by 9.4%.
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- Robust Production Capacity: The FPSOs, SEAP-I and SEAP-II, are designed to produce 120,000 barrels of oil per day, with associated gas treatment capacities of 355 million scf/day and 425 million scf/day, respectively, ensuring they meet Brazil's growing energy demands.
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- Operational Management Advantage: SBM Offshore will operate the FPSOs under an initial six-and-a-half-year contract, which not only enhances the company's operational capabilities but also strengthens its strategic partnership with Petrobras, further solidifying its leadership in the offshore energy sector.
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- Record Date for Shareholders: The record date for this dividend is set for June 3, meaning investors holding shares before this date will qualify for the dividend, potentially attracting more investor interest.
- Ex-Dividend Date: The ex-dividend date is also June 3, requiring investors to purchase shares before this date to receive the dividend, which may influence trading activity in the short term.
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See More
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- Profit Decline: Petrobras reported a Q1 net profit of 32.66 billion reais (~$6.68 billion), down 7.8% from 35.21 billion reais a year earlier, indicating challenges in profitability despite strong oil prices.
- Revenue Growth Weakness: Q1 net revenues edged up 0.4% to 123.69 billion reais, falling short of the 136.08 billion reais forecast, reflecting increased reliance on exports as domestic sales dropped by 9.4%.
- Production Capacity Increase: Oil production rose 3.2% to 2.583 million bbl/day compared to the previous quarter, with pre-salt production increasing by 3.5% to 2.189 million bbl/day, demonstrating efforts to enhance production capacity amid market volatility.
- Future Outlook: Petrobras anticipates that the surge in oil prices in Q2 will positively impact future performance, although the inability to fully reflect the price increases in Q1 results may lead to short-term market disappointment.
See More
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- Revenue Shortfall: Petrobras reported Q1 revenue of $23.54 billion, missing expectations by $3.07 billion, indicating a pessimistic market outlook regarding its financial performance.
- Adjusted EBITDA: The company delivered an adjusted EBITDA of $11.7 billion in Q1, reflecting operational stability, yet falling short of market expectations, which may impact investor confidence.
- Net Income Decline: Net income for Q1 stood at $4.5 billion, a 4.5% decrease compared to Q4 2025, suggesting that despite increased production, reduced exports negatively affected overall performance.
- Export Outlook: With an ongoing export balance of 81 Mbpd, the rise in oil prices due to the Middle East conflict is expected to positively influence Q2 exports, potentially creating new growth opportunities for the company.
See More
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- Strong Cash Flow: The company reported operating cash flow of $8.4 billion and free cash flow of $3.9 billion, indicating robust cash generation capabilities while continuing to invest in production growth.
- Increased Production Capacity: Petrobras achieved a 3.7% increase in oil and gas production in Q1, with the startup of the P-79 FPSO unit expected to enhance Brazil's gas supply capacity, thereby strengthening its market competitiveness.
See More
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See More
