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Petroleo Brasileiro SA- Petrobras (PBR)
NYSE:PBR
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Petroleo Brasileiro SA- Petrobras
(NYSE:PBR)
Select Model
Select Model
Rating:73Outperform
Price Target:
$13.50
â–²(6.97% Upside)
Petrobras scores well due to its strong financial performance and attractive valuation, supported by strategic production increases and efficient management. However, technical indicators suggest caution, and challenges in revenue growth and cash flow need addressing.
Positive Factors
Increased Oil Production
The increase in oil production demonstrates Petrobras' ability to scale operations efficiently, enhancing its market position and revenue potential in the long term.
CapEx Execution Success
Strategic CapEx execution indicates effective management and planning, ensuring sustained production growth and operational efficiency.
Commercial Gas Production Growth
Growth in gas production diversifies revenue streams and strengthens Petrobras' position in the energy market, supporting long-term stability.
Negative Factors
Falling Oil Prices Impact
Declining oil prices can adversely affect Petrobras' revenue and profitability, posing a challenge to maintaining financial performance.
Operational Cash Flow Decline
Decreased operational cash flow may limit Petrobras' ability to invest in future growth, impacting long-term financial health.
Revenue Growth Challenges
Challenges in revenue growth indicate potential difficulties in maintaining market share and financial stability, requiring strategic adjustments.
Petroleo Brasileiro SA- Petrobras (PBR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.07B
Dividend Yield13.21%
Average Volume (3M)20.73M
Price to Earnings (P/E)6.1
Beta (1Y)0.13
Revenue Growth-13.68%
EPS Growth-13.96%
CountryUS
Employees41,778
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)0.76
Shares Outstanding3,721,115,700
10 Day Avg. Volume19,652,327
30 Day Avg. Volume20,731,472
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.74
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit3.17
Enterprise Value/Ebitda4.74
Forecast
1Y Price Target
$14.87Price Target Upside17.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Petroleo Brasileiro SA- Petrobras Business Overview & Revenue Model
Company DescriptionPetróleo Brasileiro S.A. - Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. The company operates through Exploration and Production; Refining, Transportation and Marketing; Gas and Power; and Corporate and Other Businesses segments. It engages in prospecting, drilling, refining, processing, trading, and transporting crude oil from producing onshore and offshore oil fields, and shale or other rocks, as well as oil products, natural gas, and other liquid hydrocarbons. The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to the domestic refineries. The Refining, Transportation and Marketing segment engages in the refining, logistics, transport, marketing, and trading of crude oil and oil products; exportation of ethanol; and extraction and processing of shale, as well as holding interests in petrochemical companies. The Gas and Power segment is involved in the logistic and trading of natural gas and electricity; transportation and trading of LNG; generation of electricity through thermoelectric power plants; holding interests in transportation and distribution of natural gas; and fertilizer production and natural gas processing business. The Corporate and Other Businesses segment produces biodiesel and its co-products, and ethanol; and distributes oil products. Petróleo Brasileiro S.A. - Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.
How the Company Makes MoneyPetrobras generates revenue primarily through the sale of crude oil, natural gas, and refined petroleum products. Its key revenue streams include upstream activities, which involve exploration and production of oil and gas, contributing significantly to its income. The company also earns revenue from refining operations, where crude oil is processed into various products such as gasoline, diesel, and kerosene. Additionally, Petrobras has a growing focus on biofuels and renewable energy, which adds another layer to its revenue model. The company benefits from partnerships and strategic alliances, particularly in offshore exploration projects, which help reduce costs and share risks. Furthermore, changes in global oil prices and domestic fuel prices set by the Brazilian government can significantly impact its earnings, making market dynamics an important factor for its financial performance.
Petroleo Brasileiro SA- Petrobras Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in production and CapEx execution, offsetting some of the negative impacts of falling oil prices. The company is on track with its production targets and has demonstrated operational efficiency and strategic planning. However, the decline in oil prices and its impact on financial results present ongoing challenges.Q2-2025 Updates
Positive Updates
Increased Oil Production
In Q2 2025, Petrobras produced 2.3 million barrels of oil per day on average, a 5% increase compared to Q1 2025 and an 8% increase compared to the same period last year. In July 2025, production further increased to 2.47 million barrels per day.
CapEx Execution Success
Petrobras increased its CapEx in Q4 2024 to align with its guidance, resulting in a production ramp-up. In 2025, over 50 wells were linked by mid-year, surpassing the total number for the entire year of 2024.
Record Total Production
The company achieved a record total production of 4.2 million barrels of oil equivalent per day in Q2 2025.
Commercial Gas Production Growth
Petrobras increased its gas supply to the market by 15%, aided by the progress of the Rota 3 pipeline and the Boaventura gas processing unit.
Negative Updates
Falling Oil Prices Impact
In Q2 2025, the average oil price was $68 per barrel, a 10% decrease compared to the previous year, impacting financial results.
Operational Cash Flow Decline
Operating cash flow was $7.5 billion, a decline from the previous quarter, influenced by non-recurring events such as the absence of PIS/COFINS tax credits and higher selling expenses due to increased crude oil export volumes.
Company Guidance
During the Petrobras earnings call for the second quarter of 2025, several key metrics were highlighted. The company reported an impressive production increase, reaching 2.3 million barrels of oil per day on average, which is a 5% increase compared to the first quarter of 2025 and an 8% rise compared to the same period last year. This ramp-up was attributed to a strategic increase in CapEx during the fourth quarter of the previous year, which aligned with their production guidance. By July 2025, production further increased to 2.47 million barrels per day. Despite a 10% decline in Brent oil prices, from $75 to $67, Petrobras maintained a strong financial performance with a net income of $4.1 billion and an EBITDA of $10.2 billion, excluding one-off events. The company emphasized its commitment to cost reduction and efficient management, achieving a total production record of 4.2 million barrels of oil equivalent per day. Additionally, Petrobras increased its gas supply by 15%, thanks to the Rota 3 pipeline and Boaventura gas processing unit. The call also mentioned an investment plan of $18.5 billion for the year, with a focus on production efficiency and strategic project execution.Petroleo Brasileiro SA- Petrobras Financial Statement Overview
Summary
Petrobras exhibits strong profitability and cash flow generation capabilities, supported by efficient operations and moderate leverage. Challenges include declining revenue growth and a slight decrease in return on equity, but overall financials indicate a well-managed and financially stable entity.Income Statement
Petrobras has shown strong profitability with a gross profit margin of 49.7% and an EBIT margin of 26.8% in TTM (Trailing-Twelve-Months), indicating operational efficiency. However, the revenue growth rate has been negative over the past year, suggesting a contraction in top-line performance. Despite this, the net profit margin remains robust at 9.8%, showcasing effective cost control and profitability.75
Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, indicating moderate leverage. The equity ratio stands at 34.5%, which underscores strong equity financing. However, the return on equity has decreased to 12.7% in the TTM, suggesting reduced efficiency in generating profits from shareholders' equity.70
Positive
Cash Flow
Petrobras has demonstrated strong cash flow generation with an operating cash flow to net income ratio of 4.24, indicating efficient cash generation from operations. Free cash flow remains positive, though it has declined compared to previous periods. The free cash flow to net income ratio of 2.41 reflects solid ability to generate cash relative to net income.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.72B | 91.42B | 102.41B | 124.47B | 83.97B | 53.68B |
| Gross Profit | 44.10B | 45.97B | 53.97B | 64.99B | 40.80B | 24.49B |
| EBITDA | 29.46B | 31.86B | 52.30B | 70.05B | 44.90B | 16.99B |
| Net Income | 8.72B | 6.79B | 24.88B | 36.62B | 19.88B | 1.14B |
Balance Sheet | ||||||
| Total Assets | 199.87B | 181.65B | 217.07B | 187.19B | 174.35B | 190.01B |
| Cash, Cash Equivalents and Short-Term Investments | 7.67B | 7.53B | 15.55B | 10.77B | 11.12B | 12.37B |
| Total Debt | 64.49B | 60.31B | 62.60B | 53.80B | 58.74B | 75.54B |
| Total Liabilities | 130.63B | 122.30B | 138.09B | 117.36B | 104.54B | 130.13B |
| Stockholders Equity | 68.93B | 59.11B | 78.58B | 69.49B | 69.41B | 59.35B |
Cash Flow | ||||||
| Free Cash Flow | 21.04B | 21.27B | 31.10B | 40.14B | 31.47B | 23.02B |
| Operating Cash Flow | 37.01B | 36.09B | 43.21B | 49.72B | 37.79B | 28.89B |
| Investing Cash Flow | -11.81B | -13.37B | -7.96B | -432.00M | 2.16B | -4.51B |
| Financing Cash Flow | -31.35B | -33.09B | -30.70B | -51.45B | -40.79B | -19.26B |
Petroleo Brasileiro SA- Petrobras Technical Analysis
Positive
12.62
Price Trends
12.32
Positive
12.03
Positive
12.25
Positive
Market Momentum
0.16
Negative
54.56
Neutral
67.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PBR, the sentiment is Positive. The current price of 12.62 is above the 20-day moving average (MA) of 12.47, above the 50-day MA of 12.32, and above the 200-day MA of 12.25, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 67.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PBR.
Petroleo Brasileiro SA- Petrobras Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 52.86B | 19.94 | 4.99% | 6.84% | -6.31% | -33.87% | |
73 Outperform | 135.18B | 10.64 | 13.37% | 5.84% | -10.73% | -36.76% | |
73 Outperform | $80.07B | 6.09 | 19.48% | 13.21% | -13.68% | -13.96% | |
73 Outperform | 206.47B | 15.73 | 7.51% | 4.01% | -5.75% | -20.18% | |
73 Outperform | 62.04B | 7.98 | 19.62% | 8.86% | 1.19% | -7.87% | |
65 Neutral | 88.55B | 144.58 | 0.98% | 5.64% | -7.40% | -90.89% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
PBR
Petroleo Brasileiro SA- Petrobras
12.62
-0.13
-1.02%
BP
BP
34.12
3.17
10.24%
E
Eni SPA
34.73
4.26
13.98%
SHEL
Shell
70.79
4.54
6.85%
EQNR
Equinor ASA
24.15
0.66
2.81%
TTE
TotalEnergies
60.54
-5.59
-8.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.