Brazilian energy giant Petrobras reported net income of R$52.4 billion ($10.4 billion) for the second quarter of 2026, up 97% from the same period last year as rising oil production and stronger crude prices bolstered its financial performance.

Adjusted EBITDA reached R$93.8 billion ($18.6 billion), while operating cash flow climbed 46% year over year to R$61.8 billion ($12.3 billion). Excluding what Petrobras described as one-off items, net income was R$55.8 billion and adjusted EBITDA was R$100.6 billion.

The earnings increase came alongside record upstream production. Petrobras' own oil output in Brazil reached 2.7 million barrels per day, 15% above the second quarter of 2025. Total oil and natural gas production reached a record 3.34 million barrels of oil equivalent per day, while operated production hit 4.87 million boed.

The company's pre-salt operations accounted for much of the growth, with Petrobras' own pre-salt production reaching a record 2.78 million boed. The Búzios field produced an operated 1.219 million bpd on June 26 following the start-up of the P-79 FPSO, which achieved first oil in May.

Higher production also lifted Petrobras' crude exports to nearly 1 million bpd during the quarter.

Petrobras simultaneously ran its refining system at unusually high utilization rates. Its refinery utilization factor averaged a record 101.2% during the quarter, including 102.5% in April and May. Refined-product production reached 1.918 million bpd, up 5.6% from the first quarter, including record production of 509,000 bpd of S10 diesel and 109,000 bpd of jet fuel.

The higher domestic refinery output contributed to a 40% quarter-over-quarter reduction in product imports, according to Petrobras.

Petrobras invested R$26.7 billion ($5.3 billion) during the quarter, with 82% directed toward exploration and production. Spending included construction of the P-80, P-82 and P-83 FPSOs for Búzios, which are scheduled to enter service in 2027, as well as work supporting the ramp-up of the P-78 and P-79 units.

The company also continued expanding its upstream portfolio, acquiring interests in acreage offshore São Tomé and Príncipe and Brazil's Campos Basin.

Petrobras ended the quarter with gross debt of $70.8 billion, below the $75 billion ceiling established under its 2026-2030 business plan. The company said it continues to expect debt to converge toward $65 billion over the plan period.

The board approved R$17.4 billion in dividends and interest on equity for the period. Petrobras also reported paying R$88.6 billion in taxes and government participation payments during the quarter, roughly R$22 billion more than a year earlier.

By Charles Kennedy for Oilprice.com

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