Petróleo Brasileiro S.A. - Petrobras Q4 FY2025 earnings call

• Petrobras had unprecedented production growth in 2025, with production increasing 11% compared to 2024 despite oil price drops. • Records were set, like Buzios, Atapu, and Sépia fields surpassing 1 million barrels per day. • Incorporation of 1.7 billion oil barrels led to highest proven reserves in 10 years. • Refining capacity and utilization factor were strong, with high value-added derivatives production. • Gas market saw growth with the start of the second module of the Boaventura Complex unit. • Efficient approach was shown in the completion of P-79 anchoring in 12 days. • Commitment to safety, operational excellence, and capital discipline. • Investment in 2025 increased by 22% compared to 2024, leading to job creation and contributions to society through taxes, dividends, and social/environmental investments.

In 2025, Petrobras had unprecedented production growth. Oil production increased by 11% compared to 2024. Refining capacity, platform production, and oil exploration goals were surpassed. The Buzios field platforms surpassed 1 million barrels per day in October 2025, and the Atapu and Sépia fields reached 1 million barrels per day on December 31, 2025. In the gas market, the second module of the Boaventura Complex unit for processing natural gas started operating, increasing the total processing capacity. The company incorporated 1.7 billion oil barrels in 2025, achieving the highest number of proven reserves in 10 years. Sales of derivatives in the domestic market saw a 1.7 million barrels per day growth, with diesel sales up 5.2%. Refinery utilization factor was 91% with 68% of production being higher value-added derivatives. 70% of oil processed in refineries came from the pre-salt. In the gas market, gas volume contracted in the inflexible modality reached 6.6 million cubic meters per day.

• Focus on capital discipline, greater production, and higher efficiency levels from 2026 to 2030. • Aim to converge to a certain debt level in 5 years. • If there is additional revenue, will take care of investments and debt according to capital discipline. • Anticipate projects and ramp-up of platforms while considering production decline management.

• Volatility in oil prices and geopolitical uncertainties in the Middle East, which can impact the company's operations and financial results. • Uncertainty regarding the long-term effects of events like the war in the Middle East on oil prices and market dynamics. • Risks associated with the approval process of shareholders' agreements and corporate issues related to Braskem.

Q: What's going on in the oil and gas industry considering the Middle East conflict and how is Petrobras preparing?

A: Petrobras is prepared for a wide range of Brent prices. It has a solid internal policy that doesn't transfer volatility to the domestic market. In oil, it has a favorable netback, is outside the conflict region, and has favorable shipping and long-term contracts. In refined products, it's meeting goals with optimized assets.

Q: If oil prices are higher than the budgeted Brent, what's the priority allocation of excess cash flow?

A: Priority is capital discipline. Will focus on scheduled investments, then debt, and may distribute extraordinary dividends if it doesn't impact declared projects.

Q: How long can the company maintain unaltered prices before refining margin is harmed?

A: Uncertain as it depends on the trend of price volatility. If it's a momentary spike, quicker responses may be needed; if persistent, different considerations.

Q: Possibility of advancing platform operations to 2026?

A: For 2026, no other platform sail away anticipations, but ramping up of P-78 and P-79 is being looked at.

Q: How is the commercial strategy run?

A: Daily analysis and reports are written by technical, domestic, and foreign market commercialization teams. Presented to a special group and top management, with more frequent meetings in times of crisis and presented to the Board of Directors.

Q: Consequences of Middle East crisis on Petrobras' physical operations?

A: Some imports and oil sources are affected, but there are alternatives and the company has a guaranteed oil provision and long-term contracts. Planning includes optimized scenarios.

Q: Outlook on Braskem and extraordinary dividends?

A: Braskem's corporate issue is pending CADE approval. Extraordinary dividends depend on surplus cash and not impacting long-term sustainability, which is evaluated strategically.

Q: Exploration schedule in the equatorial margin and hedging?

A: No hedging strategy is being assessed. In the equatorial margin, drilling is ongoing, with expected reservoir interval reach in Q2 2026, and results will assess exploration potential.