Brazil’s state-owned oil company Petrobras posted its third-highest quarterly profit on Friday, reporting a 96% year-on-year increase in second-quarter net income as higher global oil prices lifted earnings.
The company recorded a net profit of 52.4 billion reais ($), surpassing analysts’ expectations of 44.7 billion reais, while adjusted EBITDA rose nearly 80% to 93.8 billion reais, also beating market forecasts.
Petrobras said the stronger performance was driven by elevated crude prices following the U.S.-Iran conflict, which tightened global energy markets and supported higher revenues.
Chief Financial Officer Fernando Melgarejo described the quarter as one of the strongest in the company’s history, citing record operational performance during the April-to-June period.
The company also announced shareholder payouts of 17.4 billion reais, equivalent to about 1.35 reais per share, through dividends and interest on equity.
Despite the robust earnings, Petrobras said government policies aimed at keeping domestic fuel prices low reduced its financial gains during the quarter.
The company paid about 4.9 billion reais under a temporary 12% export tax on crude oil and diesel introduced after tensions in the Middle East escalated, while delayed government subsidy payments also weighed on operating cash flow.
Petrobras said it invested approximately $5.3 billion during the quarter, with 82% directed to exploration and production to support future output growth.
The company had earlier reported higher oil and gas production and lower fuel imports, reflecting increased refinery utilisation as Brazil responded to supply pressures caused by the Middle East conflict.