Brava Energia (BRAV3) Q1 2026 earnings summary

Executive summary

• Achieved record net revenue of US$596 million and adjusted EBITDA of US$310 million in Q1 2026, more than doubling quarter-over-quarter, driven by operational efficiency, higher oil prices, and monetization improvements.

• Production reached 80,000 barrels of oil equivalent per day in April, up 5% from Q1 2026, marking the best month of the year.

• Maintained capital discipline, positive free cash flow, and delivered the fourth consecutive quarter of deleveraging, reducing net debt/EBITDA to 1.8x, the lowest since 2024.

• Offshore segment delivered robust performance, with a margin of 68% and significant cost reductions.

• Dividend payment of R$57.4 million made on April 30, 2026.

Financial highlights

• Net revenue reached a record US$596 million (R$3,135 million), up 9% YoY and 23% QoQ, reflecting improved pricing, efficiency, and monetization.

• Adjusted EBITDA hit US$310 million (R$1,628 million) with a consolidated margin of nearly 52%; offshore segment margin at 68%.

• Offshore lifting costs dropped to US$10.8 per barrel, among the lowest in recent history; consolidated lifting cost at US$14.2/boe.

• CapEx reduced by 57% YoY and 33% QoQ, signaling a shift from project implementation to cash capture.

• Ended the quarter with US$1.08 billion in cash and a leverage ratio of 1.8x, down from 3.4x a year ago.

Outlook and guidance

• Q2 expected to benefit from higher production volumes, improved realization prices, and expanded downstream margins.

• Focus remains on stabilizing production, accelerating deleveraging, executing offshore campaigns on schedule, and advancing structural cost reductions.

• Anticipates substantial production increase at Papa-Terra by year-end, with lifting costs projected to fall from US$23 to US$13 per barrel in 2027.

• Organic growth expected from new wells and EOR projects, with significant contracted growth through 2027.

• Gradual resumption of onshore production and capacity expansion from ongoing offshore drilling campaigns.