Summary of PBR-A Q4 2025 Earnings Call

1Key Financial Results and Metrics

Adjusted EBITDA: $42.5 billion, consistent with the previous year.

Net Income: $19.6 billion (excluding exclusive events), slightly up from $18.1 billion.

Operating Cash Flow: $36 billion, maintained despite a 14% drop in Brent prices, averaging $69 per barrel.

Production Growth: 11% increase in oil production compared to 2024, with significant contributions from pre-salt fields.

Refinery Utilization: 92%, with 70% of production from high-value derivatives like diesel and gasoline.

Dividends: Approved payout of BRL 8.1 billion, equivalent to BRL 0.62 per share.

2Strategic Updates and Business Highlights

Production Milestones: Buzios, Atapu, and Sépia fields each surpassed 1 million barrels per day in production.

Reserve Replacement: Added 1.7 billion barrels of oil reserves, achieving a 175% replacement rate, the highest in a decade.

Investment Focus: 84% of capital expenditures directed towards exploration and production, with a commitment to operational efficiency and capital discipline.

Sustainability Initiatives: Advancements in renewable fuels, including sustainable aviation fuel (SAF) and high-value diesel production.

3Forward Guidance and Outlook

Production Targets: Continued focus on increasing production with new platforms expected to come online in 2026 and 2027.

Market Adaptability: Preparedness for fluctuating oil prices, with a strategy to maintain stable domestic pricing despite global volatility.

Investment Strategy: Emphasis on capital discipline and prioritizing high-yield projects while remaining flexible to adjust based on cash flow and market conditions.

4Bad News, Challenges, or Points of Concern

Oil Price Volatility: The average Brent price dropped significantly, impacting revenue potential, though the company managed to mitigate this through increased production.

Geopolitical Risks: Ongoing conflicts in the Middle East pose a risk to supply chains and pricing stability.

Debt Management: Gross debt stood at $69.8 billion, with a significant portion tied to leasing platforms, raising concerns about financial leverage.

Hedging Strategy: No current hedging strategy in place, which could expose the company to further price volatility.

5Notable Q&A Insights

Geopolitical Preparedness: Management emphasized readiness for various oil price scenarios, maintaining that internal policies shield the domestic market from volatility.

Production Anticipation: Discussions on the potential for advancing platform operations were met with cautious optimism, focusing on optimizing existing production rather than rushing new projects.

Braskem Situation: Ongoing discussions regarding Braskem's future and potential synergies with Petrobras were highlighted, with a focus on maximizing value for shareholders.

Exploration in Equatorial Margin: Progress on drilling in the equatorial margin was noted, with expectations for results in the second quarter of 2026. Overall, Petrobras demonstrated resilience in its financial performance amid challenging market conditions, with a strong focus on production growth and strategic investments, while also navigating geopolitical uncertainties and price volatility.