Petrobras delivered an 11% production increase in 2025, with pre-salt milestones including Búzios and Tupi/Iracema each reaching 1 million barrels per day and record anchoring and ramp-up progress on platforms like P‑79.
Despite a 14% decline in average Brent to $69/bbl, the company reported resilient results—adjusted EBITDA $42.5B, net income $19.6B, and operating cash flow $36B—helped by asset mix, higher refinery utilization and a favorable FX effect.
Management emphasized capital discipline: 84% of investment went to E&P (~$17B), Petrobras added 1.7 billion barrels of reserves (a 175% replacement rate), ended 2025 with $69.8B gross debt (62% leasing) and the board approved BRL 1.81B in dividends, while ruling out oil-price hedging for now.
Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) executives used the company’s fourth-quarter earnings webcast to emphasize 2025 production growth, operational efficiency gains, and a commitment to capital discipline amid a volatile macro backdrop that included a sharp decline in oil prices during the year and renewed geopolitical uncertainty entering 2026.
President Magda Chambriard said 2025 was “an unprecedented year” for production growth at Petrobras, with oil and gas output rising throughout the year. She attributed the performance to integrated execution across teams, with an emphasis on safety, operational excellence, and “capital discipline.”
Chambriard said Petrobras delivered an 11% increase in production in 2025 versus 2024, which she framed as a key factor in offsetting the impact of falling crude prices. She highlighted production records in the pre-salt, including:
Búzios platforms surpassing 1 million barrels per day of operated production in October 2025, ahead of the company’s deadline.
Tupi/Iracema also reaching 1 million barrels per day on December 31, 2025.
Completion of anchoring for the P-79 platform in a record 12 days, with 26 anchoring systems connected; the platform was described as already moored and expected to start operating soon.
In the Q&A, executives said Petrobras is not expecting additional “sail away” accelerations for 2026 platforms, citing planned timing for P-80 (August), P-82 (September), and P-83 (February of the following year). However, management said it is pursuing faster ramp-ups at existing units, including P-78 and P-79, and noted a record related to gas injection at P-78 versus prior internal benchmarks.
Chief Financial Officer Fernando Melgarejo said the average Brent price in 2025 was $69 per barrel, a 14% decline from 2024 and “well below” Petrobras’ expectations. Despite that pressure, he said Petrobras delivered results supported by asset quality, production growth, and operational levers.
Melgarejo reported the following full-year 2025 figures:
Adjusted EBITDA of $42.5 billion excluding “exclusive events” (or $43.8 billion including them), described as in line with the prior year.
Net income of $19.6 billion (or $18.1 billion excluding exclusive events).
Operating cash flow of $36 billion, which he said was maintained at roughly the prior-year level despite the Brent decline.
The CFO also said 2025 results benefited from a positive foreign-exchange effect on corporate results due to appreciation of the Brazilian real versus the U.S. dollar, contrasting with negative FX impacts seen in other quarters.
Executives pointed to refining utilization and product mix as additional drivers of performance. Chambriard cited refinery utilization reaching 92%, with nearly 70% of production comprised of higher value-added products such as diesel, gasoline, and aviation fuel (QAV). Melgarejo separately cited a 91% refinery utilization factor and said 68% of output was higher value-added products.
Chambriard said Petrobras sold 1,747,000 barrels per day of products in the domestic market, up 1.43% year over year, and highlighted stronger gasoline and QAV demand. She said QAV sales rose 6% in 2025, reaching the best level in six years.
On exports, Chambriard said average oil exports reached 675,000 barrels per day in 2025 and nearly 1 million barrels per day in the fourth quarter, specifying 999,000 barrels per day for the period. She attributed the export performance to logistics efficiency and efforts to expand markets.
Chambriard highlighted progress in gas and low-carbon products. She said the second module of the Boaventura complex (a natural gas processing unit) began operating, raising total processing capacity to 21 million cubic meters per day. She also said Petrobras reached 6.6 million cubic meters per day contracted in the “inflexible” modality and said the client base doubled while maintaining service levels.
On renewable-content fuels, Chambriard said Petrobras began producing sustainable aviation fuel (SAF) at the Duque de Caxias and Henrique Lage refineries. She added that contracts were initiated at the Presidente Bernardes refinery for construction of what she described as the first dedicated plant for SAF and green diesel. She also said Petrobras delivered, for the first time in 2025, bunker fuel with renewable content to the Asian market, citing a product with 24% renewable content.
Melgarejo said Petrobras allocated 84% of investment to exploration and production, with 11% to RTM and 2% to low-carbon energy, describing $17 billion in E&P investment. He also cited a historical milestone of 77 well tie-ins in the period, compared with a prior high of 57.
On reserves, management said Petrobras added 1.7 billion barrels in 2025, reaching the highest proven reserve level in 10 years and a 175% reserve replacement rate as of December 31, 2025.
Melgarejo said Petrobras ended 2025 with $69.8 billion in gross debt, noting that 62% was tied to leasing (including platforms, ships, and rigs). He cited leasing-related debt figures for the Almirante Tamandaré ($2.6 billion) and Alexandre de Gusmão ($1.1 billion), emphasizing they are production-generating assets. He also discussed liability management actions, including bond operations in December and bank prepayments that reduced debt coming due from 2025 to 2026.
The CFO said the board approved a report for payment of BRL 1.81 billion in dividends, or BRL 0.62 per share, to be paid in two equal installments in May and June.
When asked about oil-price volatility and domestic fuel pricing, Chambriard and other executives said Petrobras maintains an internal pricing policy designed not to transfer short-term volatility directly to the Brazilian market, emphasizing resilience across price scenarios. Executives also described daily monitoring of Brent, FX, and product pricing through internal reports and frequent coordination among commercialization, logistics, and finance teams, with escalation to executive management and the board when conditions warrant.
On the potential use of hedging, Petrobras said it is not assessing an oil-price hedge strategy and reiterated its view that hedging the company’s production would be unfeasible given current costs.
In response to questions about excess cash flow if oil prices remain above budget assumptions, management reiterated capital discipline as the first priority, followed by investments and debt management, while noting extraordinary dividends could be considered if cash levels are viewed as excessive and there is no impact on the financing of projects under the company’s 2026–2030 plan.
Petróleo Brasileiro SA – Petrobras is a Brazilian, state-controlled integrated oil and gas company headquartered in Rio de Janeiro. Founded in 1953, Petrobras is principally engaged in the exploration and production of crude oil and natural gas, and operates across the full value chain from upstream activities through refining, transportation and downstream marketing of petroleum products. The company is a major player in Brazil’s energy sector and is a listed public company with global capital market presence.
Petrobras’s core activities include deepwater and ultra-deepwater exploration and production, where it has been a pioneer in developing pre-salt reserves off Brazil’s coast.
