Brazil’s state-run oil giant Petrobras, reported a 48.6% surge in first-quarter net profit on Monday, driven by one-off gains including favourable exchange rate movements.
The company also approved a $2.1 billion dividend payout, signalling strong returns for investors despite operational headwinds.
The company posted a net profit of 35.2 billion reais ($6.21 billion), up from 23.7 billion reais a year earlier. However, excluding non-recurring items such as currency fluctuations, net profit would have dropped 12.1% to 23.6 billion reais.
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Adjusted EBITDA, a key measure of operational performance, stood at 61 billion reais, up 1.7% year-on-year. Stripping out one-offs, the figure climbed slightly to 62.3 billion reais, just shy of analysts’ expectations of 62.9 billion reais, according to a poll by LSEG.
“This quarter’s financial and operational results are robust,” said CEO Magda Chambriard in a statement.
Petrobras’ board approved the distribution of 11.72 billion reais ($2.1 billion) in dividends and equity interest, equivalent to 0.91 real per share, to provide shareholders with continued earnings amid rising capital spending.
Capex rises as focus shifts to pre-salt fields
Capital expenditure reached $4.1 billion in Q1, a significant increase from $3 billion in the same period last year. According to CFO Fernando Melgarejo, 22% of Petrobras’ annual investment guidance has already been deployed, primarily into pre-salt offshore fields such as Búzios and Atapu.
Higher-than-expected investments earlier this year had stoked investors’ fears that dividend payouts might shrink. However, the new distribution signals confidence in the company’s cash flow stability.
Quarterly net revenue rose 4.6% to 123.1 billion reais, just below analyst projections of 124.9 billion reais. Operationally, the firm reported a slight 0.2% decline in oil, gas, and liquid hydrocarbons output, totalling 2.77 million barrels of oil equivalent per day.
Despite a flat production profile and growing investment needs, Petrobras continues to balance shareholder returns with long-term energy goals. Analysts are watching closely for how the firm navigates future quarters amid shifting commodity prices and strategic capital deployment.
