Stock Markets May 11, 2026 08:46 PM

Petrobras First-Quarter Profit Falls 7.2% as Company Holds Domestic Prices Steady

Net income and adjusted EBITDA slip despite slight rise in revenue amid a surge in global oil prices linked to the Iran conflict

By Priya Menon PBR

Brazilian state-controlled oil producer Petrobras reported a 7.2% drop in first-quarter net profit to 32.66 billion reais, while adjusted EBITDA declined 2.4% to 59.64 billion reais. Net revenue edged up 0.4% to 123.69 billion reais. The company maintained steady domestic fuel prices even as global oil prices rose amid the Iran war.

Petrobras First-Quarter Profit Falls 7.2% as Company Holds Domestic Prices Steady
PBR

Key Points

  • Petrobras' first-quarter net profit fell 7.2% to 32.66 billion reais for the three months to March 31.
  • Adjusted EBITDA decreased 2.4% year-on-year to 59.64 billion reais, while net revenue rose 0.4% to 123.69 billion reais.
  • The company maintained steady domestic fuel prices despite a surge in global oil prices tied to the Iran war; this pricing decision is central to interpreting the quarter's mixed results.

Brazil's state-controlled oil company Petrobras reported a smaller net profit for the first quarter, recording a 7.2% decline compared with the same period a year earlier. Net income for the three months ended March 31 stood at 32.66 billion reais, equivalent to $6.68 billion, the company said.

Core operating performance, as captured by adjusted earnings before interest, taxes, depreciation and amortization, also softened. Adjusted EBITDA came in at 59.64 billion reais, a fall of 2.4% year-on-year.

At the same time, Petrobras' net revenue rose marginally. Total revenue for the quarter was 123.69 billion reais, an increase of 0.4% from the same quarter of 2025.

Management kept domestic prices stable through the quarter despite a backdrop of rising global crude benchmarks tied to the Iran war. That decision to hold prices steady was cited alongside the results.

The company reported these results for the three-month period ending March 31. The figures show mixed trends across profitability, cash flow proxies and top-line sales: while revenue ticked higher, both net profit and adjusted EBITDA were down compared with the prior-year quarter.


Context and immediate takeaways

The quarter's numbers reflect a combination of steady domestic pricing and external pressure from higher international oil prices. Net income decreased 7.2%, adjusted EBITDA declined 2.4%, and net revenue increased by a modest 0.4% year-on-year to 123.69 billion reais.

These results were reported for the period ending March 31 and include the disclosure that net profit was 32.66 billion reais, presented in both local currency and a U.S. dollar equivalent of $6.68 billion.


Implications for markets and participants

  • Energy sector: The report highlights pressure on profitability metrics even as top-line revenue was marginally higher.
  • Brazilian markets: As a state-run oil firm, Petrobras' pricing choices and earnings performance are relevant to domestic investors and policymakers.
  • Commodities and refining: The contrast between global crude price movements and domestic price stability is central to interpreting operational outcomes in the quarter.

Notes

All figures and descriptions relate to the three-month period ending March 31 as reported by the company. The article limits itself to the data points released alongside the quarterly results.

Risks

  • Earnings pressure - Net profit and adjusted EBITDA both declined year-on-year, indicating potential near-term profitability challenges for the company and stakeholders in the energy sector.
  • Price management tension - Holding domestic prices steady amid rising global oil prices may constrain margins, affecting refining and retail segments.
  • External market volatility - The surge in global crude prices related to the Iran war represents an ongoing uncertainty for revenue and margin dynamics in the oil and commodities markets.

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