Petrobras (subsidiary issuer): Disciplined capital allocation adds to strong 1Q operations; affirm MW

Research evidence excerpt

Petrobras (subsidiary issuer): Disciplined capital allocation adds to strong 1Q operations; affirm MW

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Petrobras (subsidiary issuer)

Disciplined capital allocation adds to

strong 1Q operations; affirm MW

Earnings Review

Record hydrocarbon output in 1Q offsets pricing lag 13 May 2026

Petrobras reported a solid 1Q26, with revenues flat QoQ at $23.5bn but up 12% YoY, Global Emerging Markets | Corporate

while adjusted EBITDA excluding one-offs rose 7% QoQ and 10% YoY to $11.7bn. Credit

Results benefited from record production of 3.2MMboed (+16% YoY) and average Brent LatAm | Brazil

Energyof $80.6/bbl (+27% QoQ; +6.5% YoY), leading to E&P EBITDA of $10.3bn (+9% QoQ).

Strong E&P results were partially offset by higher production taxes and lifting costs Anne Milne

+5.6% QoQ to $6.8/boe before govt. take and leases. Research Analyst

BofAS

Refining business operates at record utilization rate +1anne.milne@bofa.com646 855 4096

Downstream was a positive surprise, with RTM adjusted EBITDA of $3.8bn, more than Bruno Larcher

doubling QoQ, helped by higher refinery utilization, lower imports and favorable ResearchMerrill LynchAnalyst(Brazil)

inventory effects. Refining output rose to 1.8MMboed (+7% QoQ) with 95% utilization in +55 11 2188 4010

bruno.larcher@bofa.com

1Q26 and 97.4% in March, the highest since 2014. Management said April utilization

GEMS Corporate Credit Rsch

surpassed 100% as Petrobras pushes derivates production amid supply shortage from BofAS

ME conflict. Government diesel subsidies of up to R$1.5/liter allowed a +46% increase in See Team Page for List of Analysts

Petrobras’ realized diesel prices with limited impact to consumers. The company is

committed with Brazil’s diesel self-sufficiency goal by 2031 and mentioned capacity