PBR

Petrobras 1Q26 Performance Summary

Business Context and Reporting Period

This Form 6-K filing covers Petrobras' performance for the first quarter of 2026 (ended March 31, 2026). The company reported solid financial results driven by record oil and gas production, which increased 3.7% compared to the prior quarter, and the appreciation of the Brazilian real against the U.S. dollar. The filing highlights the conversion of investments into production growth, including the early start-up of the FPSO P-79 (Búzios 8) in May 2026.

Key Financial Metrics

Capital Allocation: The company paid R$ 72.4 billion in taxes and approved R$ 9.0 billion in shareholder remuneration for 1Q26. Capital expenditures (Capex) totaled US$ 5.1 billion, with 87.4% allocated to Exploration & Production.

Material Changes vs. Prior Periods

• Revenue: Sales revenues remained flat quarter-over-quarter (-0.3%) but increased 11.7% year-over-year. The stability despite higher oil prices is attributed to a lag in revenue recognition for exports and pricing logic in Asian markets.
• Profitability: Adjusted EBITDA excluding one-off events rose 7.3% sequentially, driven by higher sales of local oil products and lower operating expenses (down 34.5% QoQ due to reduced exploration costs). Reported Net Income surged 113.8% QoQ, heavily influenced by a US$ 2.3 billion gain from foreign exchange variations (Real appreciation) and impairment reversals.
• Segment Performance:
  • Exploration & Production (E&P): Operating income increased 55.1% QoQ to US$ 7.3 billion. Lifting costs rose to US$ 6.76/boe due to FX and production ramp-up in Pre-salt.
  • Refining, Transportation & Marketing (RTM): Operating income jumped 194.2% QoQ to US$ 3.5 billion, aided by inventory turnover gains and a reversal of UFNIII impairment.
  • Gas & Low Carbon Energies: Operating income declined 37.8% QoQ due to lower gross profit from the accrual of revenues in the prior quarter.
• Debt: Net debt increased 2.5% QoQ to US$ 62.1 billion, primarily due to funds raised during the quarter. The leverage ratio remains stable at 1.43x.

Guidance, Outlook, and Risks

Outlook: Management expects the recent increase in oil prices (Brent averaged US$ 80.61/bbl in 1Q26) to be reflected in 2Q26 export revenues due to pricing lags. The company maintains an export balance of 81 Mbpd expected to be settled in 2Q26. The early start-up of FPSO P-79 (Búzios 8) is projected to add 180,000 bbl/day of capacity and enable gas exports.

Risks and Contingencies:

• One-off Events: Reported results include significant non-recurring items, including US$ 2.3 billion in FX gains and US$ 409 million in impairment reversals. Excluding these, net income was down 4.5% QoQ.
• Working Capital: Operating cash flow was negatively impacted by US$ 1.3 billion in working capital effects, primarily due to inventory build-up from ongoing oil exports and a shift in supplier payments.
• Forward-Looking Statements: The filing includes standard disclaimers that future results may differ from expectations due to economic conditions, industry performance, and unforeseen risks.

Investor Verification Checklist

• FX Impact: Verify the sustainability of the US$ 2.3 billion foreign exchange gain, which significantly inflated reported net income but is excluded from Adjusted EBITDA.
• Export Pricing Lag: Confirm the timeline for 2Q26 revenue recognition to understand when recent Brent price increases will materially impact the top line.
• Capex Execution: Monitor the progress of major pre-salt projects (Búzios, Sépia) and the ramp-up of FPSO P-78 and P-79 to ensure production targets are met.
• Working Capital Trends: Track inventory levels and receivables to assess if the US$ 1.3 billion negative working capital impact in 1Q26 is a temporary seasonal effect or a structural shift.
• One-off Adjustments: Review the reconciliation of Adjusted EBITDA to ensure the exclusion of impairment reversals and FX gains provides a clear view of core operational performance.