Petroleo Brasileiro S.A.-Petrobras 2026 Q2 Earnings Call

It's a pleasure to be with you today to demonstrate once again Petrobras' capacity to surpass its goals and deliver impressive results to our investors, be they from the public or private sectors. We have the full Board of Petrobras with us. I'd like to take the opportunity to greet all investors, all of the representatives of our investors, all of the executives that are in this session with us, our partners, and everybody that joined us remotely for the disclosure of our second quarter 2026 results. I'd like to greet everybody from the press joining us. We become increasingly prouder of our results.

It's a pleasure to be here once again, joined by you, to once again present another result that surpassed the previous ones of a result of our intensive work with our diverse teams, working in a partnership to deliver an increasing amount of oil, gas, and byproducts with security, quality, efficiency, and capital discipline. In the first quarter of 2026, we reached several records. In the second quarter, we surpassed them with important milestones once again. We reached, I must highlight this, we reached the highest net profit on a recurring basis for the quarter in dollars in the history of Petrobras. This recurring profit excludes exclusive events, it's also the highest gross profit in the history of Petrobras. We're proud to say that we achieved those results with no sales of assets.

Of course, Brent above $100 per barrel strengthened our results. The highest results achieved are the ones that we will go over now. The recurring-only events was not with history's highest Brent. We had over 10 quarters with oil prices above that one in the past. Nonetheless, we achieved the highest recurring results in terms of net profits in the history of Petrobras. Our key differentiator, which we're proud of, is operational administration, which is shared with the company's several different departments. Operational records in terms of the production of oil, gas, refining, and selling of products. That's been our commitment. In the quarter, we produced 2.7 million barrels of oil per day, in addition to gas. If we consider in equivalent barrels of oil, it was more than 3 million barrels per day.

We can't promise that we will surpass our goal, but I guarantee that we've always worked towards that, surpassing our goals. In the second quarter of 2026, our goal was to produce 2.5 million barrels per day. We surpassed the goal of the second quarter by 200,000 barrels of oil per day. That's due, among other factors, to increased efficiency in the production of platforms, and also by pushing forward the delivery of projects. You probably remember that we pushed forward the delivery and the wrap-up of P-78, as well as the delivery and the ramp-up of P-79. Other platforms will come. Some of them are already arriving this year. Once again, I'm going to repeat that we will move forward the delivery of big projects.

With greater volumes, we also increased our oil export levels with an additional 12% in this quarter, these sales become greater revenue and cash generation. Here, I must make a side note to highlight, in addition to the work involved in production and the engineering work involved in these projects, the participation of refining by refining and teaching our buyers to further and further refine our oil, and to further value our product. Also with the participation of logistics at Petrobras, with the intent of broadening the market for our end product, which is oil, was impressive. Once again, it was these events and the joint work of all departments of Petrobras dedicated to the same purpose and the same goal, that allowed us to achieve these great results.

Our bigger generation of revenue and cash flow will be used to fund our investments and safely prepare us for the future of the company. The cash flow that's being generated today will be used to fund Petrobras' growth. I'd like to say that just like the company was successful in its first 72 years, we are preparing the company to successfully take on the following 72 years. The refining teams, in addition to production and engineering, did a great job. The utilization factor of our refineries surpassed 100% in the second quarter of 2026. Here at the company, we got into the habit of saying that goals are for the weak of heart. Petrobras is proud to always surpass its goals.

We've increased the processing, maintaining the same Diesel yield and gasoline, which is equivalent to greater revenue for Petrobras and a greater value to our shareholders, be they public or private, without losing sight of capital discipline. The production of byproducts grew 6% vis-à-vis the previous quarter. With that, we were able to reduce imports by 40%, especially those of Diesel. We do what we have to do. We are doing it. We've elevated operating efficiency, and we've produced in way beyond the original capacity in seven platforms. We've also increased the utilization factor of refineries as a whole, of course, with safety first. The Brent price and the exchange rate is not something we can control. We don't know where they'll go. That's why we invest with capital discipline, prioritizing projects of high returns.

All of our investments involve rigorous governance for approval to verify the attractiveness and the return for our shareholders, be they from the public or private sector, and at the same time, to deliver value to society. Once again, be they comprised by our public or private shareholders, and respect the governance We need to reiterate that every day is a pillar of our administration.

We will continue focusing on our business plan, which is well known to all of you, with the commitment to deliver to society a Petrobras that's profitable and absolutely relevant to our country. I will now give the floor to our CFO, Fernando Melgarejo, who will dive into the details of the second quarter of 2026, and I want to thank you for listening to us. Thank you all for your presence.

Thank you, President. Good morning, everyone. Thank you for joining us for this webcast for the results of the second quarter of 2026. I also want to greet everybody that's here at the headquarters of the company. As we said, we had a quarter of a record operating performance, which drove Petrobras to one of its best financial results in history, which are deeply anchored in the good operating performance. Once again, I have to highlight that that was a major step forward, where we were able to manage, and also at the same time, we are able to evolve in the best possible manner, which is one of the highlights of this administration. The search for increased oil production efficiency, accelerated ramp-ups, that are also part of the records that we've been bringing to the company.

If it were not for that, we wouldn't have achieved the financial records. Financial records are firmly anchored in the operating records of the company. Now, let's move forward to slide three. Our oil production, as the president already said, was 2.7 million barrels per day. A 15% increase over 12 months, which is equivalent to 350,000 additional barrels if we compare this period to the same previous period, approximately three platforms producing additionals in only one year. As a reminder, last year, we also had records in the third quarter. It was an additional 4%. That's quite relevant. We were always wondering where we would get to, and now we can demonstrate with our production that we are reaching our goals, surpassing some indicators as well.

Alexandre de Gusmão, for instance, at the Mero field, is producing 100,000 barrels, P-78 at Búzios, 120,000, and both have the capacity to produce 180,000 barrels per day. That is to say that we have a greater capacity to achieve. In addition to the record-breaking capacity, we still have some room to cover. When they're at the nominal capacity, we'll add another 90,000 barrels per day. We also have the ramp-up of P-79, as I said, which started operations in May this year and has a capacity of 180,000 barrels. In summary, even with the record production of 2.7 million barrels of oil per day, we still have 270,000 barrels per day of capacity to ramp up in the second half. Another highlight has been the increase in production of certain platforms beyond their nameplate capacities.