Petrobras' second-quarter adjusted earnings before interest, taxes, depreciation, and amortization totaled 93.8 billion reais, or about $18.4 billion, beating analysts' projections of 91.3 billion reais. The Brazilian oil company's net income nearly doubled to 52.4 billion reais from the same period a year ago.
The gains come as supply interruptions from the US-Iran conflict have pushed up prices for crude, gasoline and diesel. Shares of Petroleo Brasileiro SA were up 1.3% in São Paulo at 10:37 a.m. local time on Friday, having climbed as high as 2% earlier in the session.
Despite rising oil prices, Petrobras chose to reward shareholders with a 3.4 billion reais payout, compared to analysts' predictions of 3.1 billion reais. Unlike some of its rivals, it did not use the windfall to reduce debt, a move that reflects uncertainty about the sustainability of war-driven profits.
Meanwhile, Petrobras reported record oil and natural gas production in the quarter, driven by new wells at major offshore fields and increased utilization at its refineries. The company sells diesel and gasoline at the refinery gate below international benchmark prices, according to Abicom, Brazil's importers' association.
The Brazilian government has introduced tax cuts and subsidies to offset the impact of higher fuel prices and also imposed a temporary oil-export tax to compensate for the cost of these measures. Analysts said the company successfully capitalized on higher oil prices and refining spreads, even as domestic fuel prices remained below international levels.