Petrobras has posted the largest quarterly profit of any major oil company in the world, reporting net earnings of US$ 6.25 billion (R$ 31.33 billion) in the first quarter of 2026. The Brazilian state-owned energy giant outperformed industry heavyweights Shell and Exxon Mobil, according to a survey by Elos Ayta.
Record-Breaking Production and Refining Efficiency
Petrobras achieved a historic milestone in output, reaching 3.23 million boed (barrels of oil equivalent per day) in its own production — of which 2.66 million boed came exclusively from the pre-salt layer, a deepwater geological formation off Brazil’s coast that has become one of the world’s most prolific oil sources.
The company’s refining operations also delivered exceptional results. The refining park operated at 95% efficiency in the first quarter, enabling Petrobras to set new records in the production of ultra-low sulfur diesel (S-10) while reducing the country’s dependence on imported liquefied petroleum gas (LPG).
What Drove the Surge in Profits
Two main factors propelled the record results:
- Soaring oil prices: The average price of Brent crude jumped 26.6% compared to the fourth quarter of 2025, driven by geopolitical tensions following the conflict involving Iran, which erupted on February 28. This translated into a R$ 10.8 billion gain in refining margins.
- Falling dollar value: The strengthening of the Brazilian real against the U.S. dollar generated a R$ 12.3 billion foreign exchange gain compared to the previous quarter.
On the cost front, Petrobras recovered R$ 2.18 billion through the accounting reversal of previously written-down assets. The company also slashed exploratory costs by 71.6% and reduced total operating expenses by 36.2% versus Q4 2025.
Dividend Payout to Shareholders
Buoyed by the strong performance, Petrobras approved a R$ 9 billion distribution to shareholders in the form of dividends and interest on equity (JCP), to be shared between public and private investors.
“Our investments are translating into growth in oil and derivative production, demonstrating the solidity and effectiveness of our value-creation strategy,” said Fernando Melgarejo, Petrobras’ financial director and head of investor relations.
Annual Comparison and Fuel Price Pressures
Despite the stellar quarterly performance, the company’s profit was 7.2% lower than the same period a year earlier, when net income reached R$ 35 billion in Q1 2025. However, the result still represents a 110% increase over Q4 2025.
The global conflict has pushed fuel prices higher worldwide — and Brazil has not been immune. According to the National Agency of Petroleum, Natural Gas and Biofuels (ANP), average fuel prices in Brazil have risen 7.1% since the conflict began:
| Fuel | Price Increase | Old Price → New Price |
|---|---|---|
| Diesel S-10 | +18.23% | R$ 6.09 → R$ 7.20 |
| Regular diesel | +16.09% | R$ 6.03 → R$ 7.00 |
| Regular gasoline | +6.05% | R$ 6.28 → R$ 6.66 |
| Additive gasoline | +5.38% | R$ 6.50 → R$ 6.85 |
| LPG (13kg cylinder) | +4.46% | R$ 109.87 → R$ 114.77 |
Brazil’s Response: Containing the Impact
The Lula administration has taken steps to cushion consumers from the global price shock, including zeroing out federal taxes on fuels and strengthening oversight of price adjustments at gas stations.
Those measures appear to have had an effect. According to data from GlobalPetrolPrices.com, fuel prices in Brazil have risen below the global average since the onset of the Iran conflict:
- Diesel: +29.16% worldwide vs. +16.9% in Brazil
- Gasoline: +21.66% worldwide vs. +5.6% in Brazil
Petrobras’ record quarter underscores the company’s growing clout in the global energy landscape — and the strategic advantage of Brazil’s pre-salt reserves — even as geopolitical turmoil continues to roil international markets.
Source: UOL
