Brazil's state-controlled oil producer Petrobras delivered stronger-than-expected earnings as robust production and record exports helped offset weaker crude prices. The company reported adjusted Ebitda of 59.9 billion reais, surpassing analyst expectations of 58.8 billion reais. This performance follows US supermajors Exxon Mobil Corp and Chevron Corp, who also beat estimates on higher output in the fourth quarter.

Petrobras accelerated development of Brazil's deep-water pre-salt region, which now delivers roughly 80% of the country's crude production. Average 2025 production reached 2.4 million barrels per day, exceeding the company's target, while fourth-quarter exports surged 97% year-over-year to a record high. CEO Magda Chambriard credited the volume growth for offsetting Brent crude's decline.

The Middle East conflict created a double-edged sword for Petrobras - higher prices boosted export revenue while election-year politics pressured the company to balance investment with fuel inflation concerns. Petrobras invested $20.3 billion last year, a 22% increase that pushed total debt to $69.8 billion, approaching its $75 billion ceiling.