Core Viewpoint - Organized workers from Petrobras rejected a work agreement, leading to the approval of a "state of strike" [1] Group 1: Company Actions - Petrobras and its subsidiaries proposed a work agreement that was ultimately rejected by the workers [1] - The rejection of the agreement has significant implications for the company's operations and labor relations [1] Group 2: Industry Impact - The approval of a "state of strike" indicates potential disruptions in the oil production and supply chain within Brazil [1] - This situation may affect the broader oil industry in Brazil, potentially leading to increased volatility in oil prices and supply constraints [1]

Core Viewpoint - Petrobras (PBR) is showing potential as a bullish investment opportunity due to its recent technical breakout and positive earnings estimate revisions [1][3]. Technical Analysis - PBR has recently broken above the 50-day moving average, indicating a short-term bullish trend [1]. - The stock has moved 10.9% higher over the last four weeks, suggesting momentum towards a potential rally [2]. Earnings Estimates - There have been no downward revisions in earnings estimates for PBR in the past two months, with two upward revisions noted [3]. - The consensus estimate for PBR has also increased, reinforcing the positive outlook for the company [3]. Investment Consideration - Given the technical indicators and positive earnings revisions, PBR is recommended for investors to consider adding to their watchlist [3].

Production Expansion - Petrobras will continue expanding production at the world's biggest oil field [1] Cost Management - Petrobras aims to avoid cost inflation as it advances deep-water projects [1]

Core Viewpoint - Petrobras anticipates annual capital expenditures to be at the midpoint to the upper end of its current estimates due to accelerated investment rollout [1] Company Summary - The chief financial officer of Petrobras indicated that the company is increasing its investment pace beyond initial expectations [1]

Financial Data and Key Metrics Changes - The company achieved an adjusted EBITDA of $12 billion, a 28% increase over the second quarter of 2025 [10] - Net income, excluding one-time items, reached $5.2 billion, marking a 28% increase over the previous quarter [10] - Operating cash flow closed at $9.9 billion, up 31% from the second quarter [10] - Free cash flow was $5 billion, a 44% increase from the second quarter [10] - The company approved a payment of BRL 12.2 billion in dividends [10] Business Line Data and Key Metrics Changes - Oil and gas production increased by 8% in the quarter, with a 17% growth over the last 12 months [11] - Pre-salt production reached 2.56 million barrels of oil equivalent, supported by a 4% efficiency increase [5] - Domestic sales of oil products increased by 5%, with diesel sales growing by 12% compared to the previous quarter [7] - The refinery FUT closed the quarter at 94%, producing high-value-added derivatives [7] Market Data and Key Metrics Changes - The company exported around 800,000 barrels of oil per day, with total exports surpassing 1 million barrels per day when including byproducts [7] - Brent prices rose by 2% in the quarter, although they fell by $11 per barrel over the past year [11] Company Strategy and Development Direction - The company is focused on increasing oil production and improving operational efficiency, with a long-term perspective on investments rather than short-term dividends [14] - Key projects in the refining segment are advancing, with significant savings achieved compared to reference budgets [6] - The company aims to enhance Brazilian self-sufficiency and contribute to energy security and emission reduction through its investments [7] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenging scenario due to the drop in Brent prices but emphasized the strong operational performance in the third quarter [4] - The company is confident in meeting its investment guidance and maintaining a focus on efficiency and cost management [16] - Management expressed optimism about future production capacity increases without additional costs, particularly in the Búzios field [22][23] Other Important Information - The company celebrated the hiring of 850 technical employees and approximately 570 new graduates to expand operations [9] - The FPSO Almirante Tamandaré reached a record instantaneous flow rate of 270,000 barrels of oil per day [22] Q&A Session Summary Question: Contribution of inflation to FPSO results and Capex constraints for 2026 - Management stated that Capex is not increasing due to inflation, and investments are being accelerated without raising project budgets [27][28] Question: Concerns regarding Braskem's financial situation - Management noted that Braskem has its own governance and no proposals are currently on the table for discussion [26] Question: Potential reduction in Capex in the midterm - Management indicated that while there may be a reduction in Capex in the future, it is not expected for the next year [31] Question: Sustainability of production levels above nominal capacity - Management clarified that production peaks are temporary and based on reservoir characteristics [46] Question: Decision-making process for leasing vs. owning FPSOs - Management explained that decisions are based on technical assessments and market conditions, with no preference for one model over the other [42] Question: Updates on the ethanol market and liquid natural gas - Management confirmed ongoing negotiations regarding ethanol and expressed interest in participating in future auctions for reserve capacity [48][63]

Financial Performance - Petrobras' third-quarter results exceeded projections [1] - Petrobras announced dividends above expectations [1] Operational Highlights - Petrobras is experiencing accelerated production [1] Legal & Political Landscape - Brazil's Supreme Federal Court (STF) initiates the trial of Jair Bolsonaro's appeal [1]

Financial Position - Total assets as of September 30, 2025, amounted to R$1,557,001,000, a decrease of 0.8% from R$1,569,110,000 on December 31, 2024[5]. - Current assets decreased to R$163,185,000 from R$209,362,000, representing a decline of 22.0%[5]. - Total liabilities remained stable at R$1,557,001,000 compared to R$1,569,110,000 as of December 31, 2024[6]. - Current liabilities increased to R$307,687,000, up 9.2% from R$281,677,000[6]. - Non-current liabilities decreased significantly from R$921,427,000 to R$826,380,000, a reduction of 10.3%[6]. - Shareholders' equity increased to R$422,934,000, up 15.6% from R$366,006,000[6]. - Total assets increased to R$1,212,038,000, up 7.8% from R$1,124,797,000 at the end of the previous period[13]. - Total liabilities increased to R$1,212,038,000 as of September 30, 2025, up from R$1,124,797,000 at the end of 2024, representing an increase of approximately 7.7%[14]. - Current liabilities decreased to R$182,367,000 from R$194,808,000, a reduction of approximately 6.4%[14]. - Non-current liabilities rose to R$604,710,000 from R$562,475,000, marking an increase of about 7.5%[14]. - Total consolidated assets as of September 30, 2025, amounted to R$1,212,038 million, an increase from R$1,124,797 million as of December 31, 2024, representing a growth of approximately 7.8%[51][52]. Revenue and Profitability - Sales revenues for the current period reached R$124.526 billion, a 2.3% increase compared to R$121.790 billion in the previous period[7]. - Gross profit for the current period was R$57.564 billion, down 6.0% from R$61.381 billion in the previous period[7]. - Net income from continuing operations for the current period was R$32.705 billion, slightly up from R$32.555 billion in the previous period[8]. - Total comprehensive income for the current period was R$32.022 billion, a decrease from R$33.757 billion in the previous period[8]. - Operating expenses for the current period were R$9.112 billion, a reduction from R$12.549 billion in the previous period, indicating improved cost management[7]. - Sales revenues increased to R$543,880,000, up 6.5% from R$512,572,000 in the previous period[12]. - Net income for the period rose to R$94,566,000, compared to R$53,650,000, reflecting a growth of 76.2%[12]. - Sales revenues for the period from July 1, 2025, to September 30, 2025, were R$127,906,000, slightly down from R$129,582,000 in the same period of the previous year, a decrease of about 1.3%[15]. - Gross profit for the current period was R$61,117,000, compared to R$66,578,000 in the previous year, reflecting a decline of approximately 8.2%[15]. - Net income from continuing operations for the period was R$32,847,000, an increase from R$32,676,000 year-over-year, showing a growth of about 0.5%[16]. - Total comprehensive income for the period reached R$86,213,000, compared to R$78,586,000 in the previous year, indicating an increase of 9.9%[18]. Cash Flow and Investments - Net cash provided by operating activities decreased to R$99,532,000 from R$144,936,000, a decline of 31.3% year-over-year[11]. - The company reported a net cash used in investing activities of R$32,228,000, a reduction from R$75,803,000 in the previous period[11]. - Cash and cash equivalents at the end of the period were R$965,000, a significant decrease from R$22,626,000[11]. - The company reported a decrease in cash used in investing activities to R$50,737,000 from R$53,194,000, a reduction of 8.7%[19]. - Cash used in operating activities for the nine-month period ended September 30, 2025, was R$2,885 million, up from R$1,549 million in the same period of 2024, reflecting an increase of 86%[172]. - The company recognized a total cash used of R$7,037 million in the nine-month period ended September 30, 2025, compared to R$3,895 million in the same period of 2024, representing an increase of 80%[172]. Taxation and Contributions - The company incurred R$12.075 billion in income tax and social contributions for the current period, compared to R$10.566 billion in the previous period[7]. - Income taxes in Brazil increased to R$3,541 million as of September 30, 2025, compared to R$2,510 million as of December 31, 2024, representing a growth of about 41%[65]. - The effective tax rate for income taxes was 29.5% for the nine-month period ended September 30, 2025, compared to 29.4% for the same period in 2024[66]. - The company recognized a deferred income tax expense of R$17,054 million for the nine-month period ended September 30, 2025, compared to a benefit of R$4,630 million for the same period in 2024[68]. Employee Compensation and Benefits - Employee compensation decreased to R$30,529,000 from R$32,923,000, a decline of 7.3%[12]. - Employee compensation totaled R$33,485 million, down from R$35,741 million, indicating a decrease of 6.3%[20]. - The company provisioned R$2,701 million for profit sharing (PLR) for the nine-month period ended September 30, 2025, compared to R$2,488 million for the same period in 2024[84]. - The company recognized net costs for pension and health care plans of R$7,309 for the nine-month period ended September 30, 2025[100]. Legal and Contingent Liabilities - The total provision for legal claims as of September 30, 2025, was R$16,480, a decrease from R$17,543 at the end of 2024[107]. - Estimated contingent liabilities decreased to R$220,109 as of September 30, 2025, down from R$248,601 as of December 31, 2024, representing a reduction of approximately 11.5%[115]. - The main contingent liabilities include R$121,378 related to tax matters and R$80,441 related to civil matters, indicating the company's exposure to various legal challenges[115]. - The company maintains a Negotiated Legal Proceeding (NJP) agreement with the Brazilian National Treasury, allowing for judicial discussions without immediate disbursement, with R$13,472 in production capacity held as a guarantee[112][114]. Capital Expenditures and Financing - The company made additions to property, plant, and equipment totaling $130.94 million in the first nine months of 2025, compared to $78.23 million in the same period of 2024, representing an increase of about 67%[149]. - The company raised R$2,861 million through a public offering of debentures with maturities in 2035, 2040, and 2045[188]. - The average interest rate on total finance debt as of September 30, 2025, is 6.7%[189]. - The total repayment of principal and interest for lease liabilities in the nine-month period ended September 30, 2025, was R$38,268 million[193]. Miscellaneous - The company completed a tax settlement program in June 2024, resulting in a R$10,391 million expense net of reimbursements[76]. - The company agreed to resume the historical health plan funding ratio of 70% for Petrobras and 30% for beneficiaries, effective April 2024[88]. - The class action in the Netherlands continues to pose uncertainties, with the court ruling that Petrobras acted illegally in relation to some investors, but the outcome remains uncertain[122][127].

Operational Highlights - Total oil and natural gas production reached a new record of 3.14 MM boed, up 7.6% from 2Q25 and 16.9% from 3Q24[9] - Total operated production reached a record of 4.54 MM boed, and pre-salt own production reached a record of 2.56 MM boed[9] - FPSO Almirante Tamandaré in Búzios achieved peak production at 225 mbpd with only 5 production wells, ahead of schedule, and surpassed 250 mbpd daily production in October[10] - P-78 arrived at the Búzios field in September 2025, with start-up expected in 4Q25[1, 10] - Diesel S10 production will expand by 76 mbpd, Jet Fuel by 20 mbpd, and Group II lubricant by 12 mbpd at the Boaventura Complex[15] - RNEST's processing capacity will reach 260 mbpd by 2029[16] - The company approved the construction of the CCS São Tomé Pilot Project in Macaé (RJ) for the capture, transport, and geological storage of up to 100 thousand tons of CO₂ per year[24] - Natural gas processing plants reached a record of 44 MMm³/d of specified gas for sale in August 2025[26] - The company advanced in the natural gas free market, reaching 6.5 MMm³/d of contracted volume, approximately 65% of the total market[27] - IBAMA approved the expansion of FPSO Almirante Tamandaré capacity from 220 to 270 mbpd, with Petrobras' share of the additional capacity being approximately 90 mbpd[60, 61] Financial Results - EBITDA excluding one-off events was US$ 12.0 billion in 3Q25, a 17% increase compared to 2Q25[34] - Net income excluding one-off events was US$ 5.2 billion in 3Q25, a 28% increase compared to 2Q25[34] - Operating Cash Flow (OCF) was US$ 9.9 billion in 3Q25, a 31% increase compared to 2Q25[34] - Free Cash Flow (FCF) was US$ 5.0 billion in 3Q25, a 44% increase compared to 2Q25[34] - Dividends for 3Q25 were R$ 12.2 billion, a 40% increase compared to 2Q25, equivalent to R$ 0.94 per share[34, 48] - Cash and cash equivalents increased by US$ 2.1 billion from June 2025 to September 2025, reaching US$ 11.6 billion[45] - The company issued two new bonds in September, due in 2030 and 2036, each amounting to US$ 1 billion[45] CAPEX - CAPEX for 3Q25 was US$ 5.5 billion, with 67.5% allocated to Production Development and 8.5% to Exploration[40] - Total CAPEX for 9M25 was US$ 14.0 billion, while cash CAPEX was US$ 12.9 billion[42]

Core Insights - Petrobras reported a net profit of $6.03 billion for the third quarter, reflecting a 2.7% increase compared to the same period last year [1] Financial Performance - The net profit of $6.03 billion indicates a positive growth trajectory for Petrobras, showcasing resilience in its financial performance amidst market fluctuations [1]

Industry Trend - Petrobras' shallow-water oil field sales in Brazil are facing setbacks [1]