Key Takeaways Zacks Rank & Key Picks BP and PBR currently carry a Zack Rank #3 (Hold). Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM) and Enbridge Inc. (ENB) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. BP plc (BP) is exploring the possibility of partnering with Petróleo Brasileiro S.A. – Petrobras (PBR) to develop its Bumerangue oil and gas dis ...

Analyst's Disclosure:I/we have a beneficial long position in the shares of PBR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any inv ...

Oil Production and Exploration - Brazil, a major oil producer, surpasses the United Arab Emirates in oil production [1] - Brazil's oil boom is projected to peak in the next few years, with production declining from the early 2030s [1] - Petrobras plans a major offshore exploration campaign near the Amazon [1] Global Oil Demand and Supply - The world needs to discover more oil to ensure stable supplies during the transition to cleaner fuels [2] - Even with declining global demand from the 2030s, the world will require 18 million barrels per day in 2040, exceeding current US production levels [2] - Consultancy Ricead Energy projects a global demand of 18 million barrels per day in 2040 [2] Location Context - The exploration campaign is planned near Berlin, a city of 1.3 million people, located near the Amazon [1]

Financial Data and Key Metrics Changes - In Q2 2025, Petrobras reported a net income of $4.1 billion and EBITDA of $10.2 billion, both excluding one-off events, which are consistent with the previous quarter despite a 10% decline in Brent prices [11][12] - Operating cash flow decreased to $7.5 billion compared to the previous quarter, primarily due to known events such as tax credits and higher selling expenses related to increased crude oil export volumes [13][14] - The company maintained a financial debt level under control, with over 60% of total indebtedness related to leases of platforms, vessels, and rigs [14][15] Business Line Data and Key Metrics Changes - Petrobras increased its gas supply to the market by 15%, mainly due to the progress of the Route 3 pipeline and the Bua Ventura gas processing unit [2][10] - Total production reached a record of 4.2 million barrels of oil equivalent per day, with a 5% increase in production volume in Q2 [10][12] - The company achieved a midpoint of its 2025 production target of 2.3 million barrels per day in the first half of the year [8] Market Data and Key Metrics Changes - Brent prices fell by 10% quarter-over-quarter, impacting revenue, but increased production helped mitigate the effects on financial results [8][12] - The company expects average oil and gas production in 2025 to be at the upper end of the target range, with a potential additional revenue of $2.5 billion at a price of $70 per barrel [21] Company Strategy and Development Direction - Petrobras is focused on increasing production efficiency and reducing costs in response to the challenging geopolitical environment and fluctuating oil prices [4][5] - The company aims to optimize its projects and maintain a strong commitment to generating value for investors and Brazilian society [6][22] - Future projects will be evaluated based on profitability and alignment with the company's strategic goals, ensuring capital discipline [49][52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by falling oil prices but emphasized the company's ability to adapt through increased production and cost reductions [4][5] - The management expressed confidence in achieving production targets and maintaining financial robustness despite external pressures [22][83] - The company is committed to complying with all contracts and ensuring profitable projects are prioritized [83][85] Other Important Information - Petrobras plans to distribute 45% of its free cash flow from Q2, amounting to 8.7 billion Brazilian reals, to shareholders in two equal installments [22][23] - The company has successfully executed a public offering of debentures totaling 3 billion Brazilian reals, allowing for competitive funding in the local market [15] Q&A Session Summary Question: What advancements can be expected in natural gas distribution and how does it integrate with the business plan? - Petrobras is focused on increasing gas production and exploring synergies, but currently has no projects to acquire LNG [25][26] Question: Can you discuss the risk factors that lead to a more conservative production curve? - Management highlighted the importance of connecting fields to maximize production and acknowledged the impact of scheduled shutdowns on output [35][38] Question: What is the flexibility regarding CapEx in light of lower oil prices? - The company will reassess projects based on profitability and may postpone or optimize projects as needed, while maintaining its CapEx guidance for the year [72][75] Question: How does Petrobras plan to handle potential movements in the ethanol sector and pre-salt layer auctions? - Petrobras will participate in pre-salt layer auctions if economically viable, while also focusing on renewable fuels and energy transition projects [69][70] Question: Can you clarify the partnership with Accent and its synergies with Guyana and Suriname? - The partnership with Accent is aimed at sharing risks and knowledge, leveraging similarities in the operational environment [64]

Operational Highlights - Petrobras' total production of oil and natural gas reached 2.91 MM boed, a 5% increase compared to 1Q25[9] - Total operated production reached a record level of 4.19 MM boed[9] - Pre-salt layer own production also reached a record of 2.39 MM boed[9] - FPSO Alexandre de Gusmão started production in the Mero Field with a capacity of 180 thousand barrels of oil per day and process 12 million m³ of gas[10] - The company signed new contracts in the free gas market, increasing volumes by 170% in 1H25[21] Financial Highlights - Commercial oil and gas production in Brazil increased by 5% from 1Q25 to 2Q25[29] - Operating cash flow was US$7.5 billion in 2Q25[32] - Net income was US$10.2 billion in 2Q25[32] - Total utilization factor of refining system was 91% in 2Q25 with 68% yield of high value-added oil products[16] - Shareholder remuneration was R$8.7 billion in 2Q25[49]

RT Bloomberg em Português (@BBGEmPortugues)Ouro bate recorde em NY com tarifas dos EUA sobre o metal. Diogo Guillen fala em evento. Petrobras decepciona com balanço e anuncia dividendo menor que o esperado. Se inscreva para receber o conteúdo gratuito da nossa newsletter https://t.co/BTjmgBccQk ...

Brazil’s state-controlled oil producer Petrobras reported weaker-than-expected results and cut its dividend after lower oil prices offset stronger production figures https://t.co/uuSt9U7NeB ...

I last analyzed Suncor Energy Inc. (NYSE: SU ) and Petróleo Brasileiro S.A. - Petrobras (NYSE: PBR ) on June 5 and June 3, respectively. Both articles were promoted byAs you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 but also avoid heavy drawdowns despite the e ...

Group 1 - Petrobras has a history of challenges including government ownership, political issues, and past scandals, but the company's business performance is currently strong [1] - The company is reporting significant profits and production levels, indicating robust operational performance despite external controversies [1]

Core Viewpoint - Petrobras has been a highly searched stock recently, indicating potential interest and volatility in its performance [1] Earnings Estimate Revisions - For the current quarter, Petrobras is expected to report earnings of $0.71 per share, reflecting a year-over-year increase of +51.1% [5] - The consensus earnings estimate for the current fiscal year is $2.66, indicating a decrease of -10.7% from the previous year, with a recent change of -4.4% [5] - For the next fiscal year, the earnings estimate is $2.48, showing a decline of -6.8% compared to the prior year, with a slight increase of +0.1% over the past month [6] - The Zacks Rank for Petrobras is 3 (Hold), suggesting it may perform in line with the broader market in the near term [7] Projected Revenue Growth - The consensus sales estimate for the current quarter is $20.25 billion, indicating a year-over-year decline of -13.7% [11] - For the current fiscal year, the revenue estimate is $82.16 billion, reflecting a decrease of -10.1%, while the next fiscal year's estimate is $83.47 billion, indicating a slight increase of +1.6% [11] Last Reported Results and Surprise History - Petrobras reported revenues of $21.07 billion in the last quarter, a year-over-year decrease of -11.3%, with an EPS of $0.62 compared to $0.75 a year ago [12] - The reported revenues were below the Zacks Consensus Estimate of $21.64 billion, resulting in a revenue surprise of -2.61%, while the EPS surprise was -32.61% [12] - Over the last four quarters, Petrobras surpassed consensus EPS estimates twice and topped revenue estimates once [13] Valuation - Petrobras is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]