Petrobras Posts Record Profit as Oil Prices Soar Amid Middle East Conflict

Petrobras, Brazil's state-run oil firm, reported its third-highest quarterly profit in history due to surging oil prices caused by the U.S.-Iran conflict. The company earned a net profit of 52.4 billion reais, a 96% increase from last year's second quarter.

The results exceeded market expectations, with adjusted earnings before interest, taxes, depreciation and amortisation growing 79.6% year over year to 93.8 billion reais. Petrobras' Chief Financial Officer, Fernando Melgarejo, stated that the company achieved 'one of the strongest quarterly financial results in Petrobras' history.'

However, Petrobras' earnings were negatively impacted by Brazil's government decision to keep fuel prices low after the closure of the Strait of Hormuz. The firm paid around 4.9 billion reais to the government due to a 12% export tax on crude oil and diesel.