Petrobras Rides Global Oil Price Surge to Record Quarterly Profit

Petrobras, Brazil's state-controlled oil company, reported a record quarterly profit in its second-quarter 2026 financial results. The surge in net profit was driven by surging international crude prices, which were pushed above their level a year earlier due to the ongoing conflict between the United States and Iran.

The Strait of Hormuz, a strategic corridor for global oil trade, has been repeatedly closed during this conflict. In response, the Brazilian government limited the pass-through of increased international prices to domestic diesel prices by cutting federal taxes on fuel and subsidizing its sale.

This policy choice had a dual effect on Petrobras's accounts: it imposed a heavier tax burden on the company due to a new export tax on crude oil and bituminous minerals, but also allowed it to record a public subsidy receivable tied to domestic diesel pricing. The company's operating cash generation was curbed by an unfavorable working capital effect.

The quarterly result ranks among the highest in Petrobras's history, exceeding average analyst expectations. Adjusted gross operating margin and revenue both rose sharply year-on-year.