Petrobras: 1Q26 review: Result below BofAe; higher oil prices to be captured in the coming qtr

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Petrobras: 1Q26 review: Result below BofAe; higher oil prices to be captured in the coming qtr

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Petrobras

1Q26 review: Result below BofAe; higher

oil prices to be captured in the coming qtr

Reiterate Rating: BUY | PO: 65.00 BRL | Price: 20.75 USD

Dividends of US$1.8 billion (vs. BofAe US$2.35 billion) 11 May 2026

Petrobras announced that its Board of Directors approved an ordinary dividend Equity

distribution of R$0.70/sh (US$0.28/ADR), totaling US$1.8bn and implying a cash yield of

Caio Ribeiro >>

around 1.4%. This came below our estimate of US$2.35bn and consensus of US$2.3bn. Research Analyst

Overall, the weaker dividend reflects the softer-than-expected operating cash generation Merrill Lynch (Brazil) caio.ribeiro@bofa.com

in the quarter. We had expected FCFO of US$9.4bn, but Petrobras delivered US$8.4bn,

Leonardo Marcondes >>

largely driven by the EBITDA miss, while the remaining operational cash flow lines were Research Analyst

broadly in line with our forecasts. On the cash capex front, typically a key focus for Merrill Lynch (Brazil) leonardo.marcondes@bofa.com

investors, spending came exactly in line with expectations at US$4.5bn. The distribution

Nicolas Barros >>

will be paid as dividends in two equal installments (Aug 20th/Sep 21st for local shares and Research Analyst

Aug 27th/Sep 28th for ADRs). PBR shares will trade ex-dividend on B3 as of June 2nd. Merrillnicolas.barros@bofa.comLynch (Brazil)

EBITDA came below BofAe and consensus

1Q26 adj. EBITDA came in at US$11.7bn, up 7.3% QoQ and +10.2% YoY, but below

BofAe and consensus of US$12.8bn and US$12.9bn, respectively. The miss vs. BofAe Stock Data

can be largely explained by lower-than-expected realization prices at the upstream Price (Common ADR / Pref ADR) 20.75 USD / 18.93 USD