Petrobras Hits Two-Year High on Q4 Profit Swing, $1.5B Dividends
Petrobras swung to a Q4 net income of $2.889B from a $2.78B loss and declared $1.5B dividends with production up 11%. Shares trade at an EV/proven reserves discount, yield 6.3% forward dividends and could boost FQ1’26 cash flow from low capex costs.
1. Q4 Financial Performance
Petrobras swung to a net income of $2.889 billion in Q4 from a $2.78 billion loss a year earlier, with sales revenues rising 13% to $23.6 billion and total oil and gas production up 11% despite a 14% drop in Brent crude prices.
2. Dividend Distribution and Share Reaction
The company declared $1.5 billion in dividends for the quarter, driving its share price to a two-year high as investors cheered the return to profitability and robust operational results.
3. Valuation and Outlook
Shares trade at a discount on an EV/proven reserves basis and carry a 6.3% forward dividend yield, while low breakeven capex costs and elevated Brent prices could boost FQ1’26 free cash flow.