Petrobras (PETR4) Q1 2025 earnings summary

Executive summary

• Net income reached $6.0 billion in Q1 2025, up 30.7% from Q4 2024, supported by strong operational performance and higher production volumes, with total oil and gas production at 2.77 million boe/d, up 5.4% sequentially.

• Adjusted EBITDA excluding one-off events was $10.7 billion, an 8% increase sequentially, driven by higher oil production, improved diesel crack spreads, and new discoveries.

• Operational cash flow totaled $8.5 billion, with free cash flow at $4.5 billion, supporting robust shareholder returns and investments.

• Cost reduction, capital discipline, and project simplification remained priorities, with continued expansion of reserves and new discoveries in the pre-salt layer and key basins.

• Sustainability efforts included the launch of bunker fuel with 24% renewable content in Asia and major reforestation initiatives in the Amazon.

Financial highlights

• Adjusted EBITDA reached $10.7 billion, up 8% from the previous quarter; net income was $6.0 billion, with $4.0 billion excluding FX effects, a 31% increase quarter-over-quarter.

• Operational cash flow was $8.5 billion, up 4% sequentially; free cash flow grew 20% to $4.5 billion.

• Investments for Q1 2025 were $4.1 billion, down 29% from Q4 2024 but up 34% year-over-year, focused on pre-salt projects.

• Dividends of BRL 11.7 billion were approved, with over BRL 65 billion paid in taxes.

• Sales revenues were $21.1 billion, up 1.2% from Q4 2024 but down 11.3% year-over-year.

Outlook and guidance

• CapEx guidance for 2025 is maintained at BRL 18.5 billion, with most large projects already contracted and investments in Q1 representing 22% of annual guidance.

• Projects are resilient to Brent prices as low as $45/bbl, with an average E&P portfolio break-even at $28/bbl.

• Ongoing cost-cutting, project reprioritization, and focus on high-return, short- and medium-term projects to adapt to lower oil prices.

• Production guidance for 2025 remains at 2.8 million bbl/day, with ramp-ups from new platforms and continued pre-salt development.