Petrobras Reports Record Oil and Gas Output in Q1
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy PBR?
Source: seekingalpha
- Record Production: Petrobras reported a total production of oil, natural gas liquids, and gas reaching 3.23 million barrels of oil equivalent per day in Q1, reflecting a 16% year-over-year increase and a 3.7% rise from the previous quarter, driven by robust growth in its pre-salt fields and improved refining performance.
- Operational Milestones: The company's total operated production hit 4.65 million boe/d, with output from pre-salt reserves exceeding 4 million boe/d, reinforcing its leadership position in the global energy market amid rising demand.
- Strengthened Downstream Performance: Refining production increased by 6.7% to approximately 1.816 million barrels per day, with refinery utilization reaching 95% during the quarter, indicating significant operational efficiency improvements in its downstream business.
- Geopolitical Context: The record performance occurs against a backdrop of heightened geopolitical tensions, particularly the conflict involving Iran disrupting global crude flows and tightening supply, highlighting Petrobras's resilience and strategic significance in a volatile market.
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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: 20.370
Low
13.30
Averages
15.15
High
17.00
Current: 20.370
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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- European Energy Giants: Eni (E) and Neste (NTOIY) follow closely with Quant scores of 4.93 and 4.92, respectively, reflecting strong cash generation and attractive dividend yields at current oil prices, indicating their sustained competitiveness in the market.
- Shipping Market Supports Earnings: Tanker companies like Frontline (FRO), Okeanis Eco Tankers (ECO), and DHT Holdings (DHT) boast Quant scores above 4.81, demonstrating their profitability in a tight crude shipping market, which further boosts investor confidence in these firms.
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- Market Leadership: As one of the largest FPSO operators globally, Petrobras's choice of SES's O3b mPOWER system underscores its leadership in new offshore projects and reflects the growing demand for high-performance communication solutions in the energy sector.
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- Operational Milestones: The company's total operated production hit 4.65 million boe/d, with output from pre-salt reserves exceeding 4 million boe/d, reinforcing its leadership position in the global energy market amid rising demand.
- Strengthened Downstream Performance: Refining production increased by 6.7% to approximately 1.816 million barrels per day, with refinery utilization reaching 95% during the quarter, indicating significant operational efficiency improvements in its downstream business.
- Geopolitical Context: The record performance occurs against a backdrop of heightened geopolitical tensions, particularly the conflict involving Iran disrupting global crude flows and tightening supply, highlighting Petrobras's resilience and strategic significance in a volatile market.
See More
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- Acquisition Overview: Petrobras (PBR) announced its agreement to acquire 100% of the Argonauta field for approximately $290 million, a complex deal involving Shell (SHEL) and its partners, marking a strategic expansion in the Campos Basin.
- Resource Increase: This acquisition raises Petrobras' interest in the Jubarte shared reservoir from 97.25% to 98.11%, with the Brazilian government retaining a 1.89% stake, further solidifying the company's market position.
- Economic Benefits: Petrobras stated that the transaction offers attractive economic and financial terms, aligning with its strategy to strengthen and streamline operations in the Campos Basin, which is expected to enhance overall profitability.
- Market Reaction: Despite market misinterpretations of Petrobras' opportunities, this acquisition is viewed as a potential value enhancement for the company, indicating its ongoing competitiveness and growth potential in the oil and gas sector.
See More
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- Foreign Capital Inflow Drives Growth: A Bank of America survey indicates continued capital allocation to Latin America, particularly after U.S. military actions led to record highs in local markets, reflecting strong foreign support for emerging markets.
- Monetary Policy Expectations Shift: Significant changes in monetary policy expectations have occurred in Brazil, Mexico, and Chile, with the market's rate hike expectations for Mexico deemed excessive, indicating increased investor confidence in Latin American currencies, which have appreciated against the dollar.
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