Petrobras Profits Soar 80% Amid US-Iran Conflict-Driven Oil Rally

Petrobras, Brazil's largest oil producer, has seen its profits soar by 80% in the second quarter, driven by supply disruptions from the US-Iran conflict. This has led to a rally in prices for crude, petrol, and diesel.

The company's adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached 93.8 billion reais ($18.4 billion), surpassing the average consensus of 91.3 billion reais compiled by Bloomberg. Petrobras joins major energy companies like ExxonMobil, Chevron, and Shell in benefiting from the war-driven gains.

However, unlike its rivals, Petrobras has chosen to reward investors with $3.4 billion in shareholder payouts, rather than reducing debt. The company's focus on production has led to record oil and natural gas output for the quarter, thanks to new wells at giant offshore fields and high refinery utilisation rates.

The Brazilian government has implemented tax cuts and subsidies to mitigate the impact of higher fuel prices on consumers, while also imposing a temporary oil-export tax. Petrobras is selling diesel and petrol below the international benchmark price, according to the Brazilian importers' association Abicom.