UGO AMADI
Petrobras has delivered another blockbuster quarter, reporting net income of BRL 39.8 billion ($7.7 billion) in the third quarter of 2026, driven by record oil production, near-full refinery runs and surging cash generation.Excluding one-off items, net income jumped to BRL 47.9 billion ($9.3 billion), up 68% on the same period last year.
Adjusted EBITDA hit BRL 85.8 billion ($16.7 billion) — or BRL 94.5 billion excluding one-offs — while operating cash flow rose 15% year-on-year to BRL 61.8 billion ($12 billion).The result caps a historic run for Brazil’s state-controlled oil giant. For the third consecutive quarter in 2026, Petrobras broke its own oil production record.“
We once again achieved record oil and gas production, raising our production curve to an all-time high,” said CEO Magda Chambriard. “We had projected an average of 3.1 million barrels of oil equivalent per day for the year, but our latest estimates now point to 3.3 to 3.4 million barrels per day.”Total operated production reached 3.51 million boe/d in the quarter, including 2.96 million boe/d from the prolific pre-salt. The growth came not from new mega-projects alone, but from squeezing more from existing assets — 11 platforms were authorized to safely produce above their original design capacity, with no extra investment.
The P-78 and FPSO Alexandre de Gusmão each hit peak production of 180,000 barrels per day and were cleared to go higher.Refining at 99%Downstream was just as strong. Refineries ran at 99% total utilization, up 5 percentage points from a year ago, delivering a record 769,000 barrels per day of diesel and total refined output of 1.873 million bpd.
Domestic sales of refined products hit 1.854 million bpd — the highest since Q3 2021 and the best ever with the current refining park. Petrobras said the performance was critical to Brazil’s energy security amid global geopolitical tension.Cash Fuels Investment, Dividends and Debt CutChief Financial Officer Fernando Melgarejo said the operational surge translated into strong cash that is funding the next growth cycle.
Petrobras invested BRL 33 billion ($6.4 billion) in the quarter, with BRL 27.5 billion going to exploration and production, mainly for platform construction and well tie-ins.Gross debt fell 1.2% to $70 billion, while net debt dropped 4.2% to $57.8 billion. The board approved BRL 15.3 billion in dividends and interest on equity for the period.The company also returned a record BRL 251.3 billion to society in the first nine months of 2026 through taxes and government take — the highest cumulative amount ever for the period.
New Frontiers: Equatorial Margin, Africa and Low-CarbonPetrobras used the quarter to expand its future portfolio:Exploration: Three oil discoveries in the Morpho well in the Equatorial Margin (Block FZA-M-59) and a gas discovery in the Sandia-1 well offshore Colombia.Auctions: Won 21 blocks in ANP auctions in Brazil, including 100% stakes in Azurita and Cruzeiro do Sul.Africa: Signed production-sharing contracts for 8 offshore blocks in Côte d’Ivoire (90% operated), completed acquisition of Block 3 in São Tomé and Príncipe (75%), and opened talks for 4 blocks in Ghana’s Keta Basin.
New FPSOs: The P-80 and P-82 units sailed for the Búzios field, each with 225,000 bpd capacity, due onstream in 2027.Sustainable Fuels: Started SAF exports from REDUC, authorized Diesel R with 8.5% renewable content, and advanced its São Tomé CCS pilot and Rota Verde marine fuels program.
With record production, record refining and a bulging project pipeline, Petrobras says it is now accelerating profitable investments that will “continue to generate value through growth and operating cash flow.”
