May 12, 2026 [Reuters]- Brazil’s state-run oil firm Petrobras reported a drop in first-quarter net profit, missing market expectations, as the impact of higher oil prices from the Middle East conflict had yet to flow through to results, it said in a Monday filing.
Petrobras posted a net profit of around 32.7 billion reais ($6.68 billion), down 7.2% from a year earlier, while approving a payout of 9 billion reais to shareholders in a separate filing.
The company said the surge in oil prices that followed the start of the U.S.-Israeli conflict with Iran in late February would only be felt in the second quarter.
Most Petrobras exports are shipped to Asian markets, with pricing typically being based on quotations from the month prior to the cargo’s arrival, the firm said.
The average Brent crude price for the first quarter was $80.60, only 6.5% above prices a year earlier, according to the firm’s results, while Brent prices surged past $100 after the closing of the Strait of Hormuz.
The Brazilian oil major has become increasingly reliant on its exports to generate revenue. While revenue from exports rose 28.3% in the first quarter, its revenue from sales in Brazil dropped 9.4% over the same period.
On the whole, net revenue rose slightly by 0.4%, to 123.69 billion reais, below the 136.08 billion reais the market had forecast.
Core earnings, as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 59.64 billion reais, a 2.4% fall. Analysts expected 64.48 billion reais.
