Petrobras reported strong 1Q26 results with rising output and revenue, maintaining its status as a stable credit. UBS continues to recommend its 2035 USD bonds for hold-to-maturity strategies despite potential government pricing risks.
Key Takeaways
- 1.Petrobras remains a strong and stable credit, supported by robust 1Q26 operational and financial performance.
- 2.Financial performance in 1Q26 was driven by higher Brent prices and increased hydrocarbon output, resulting in 11.7% YoY revenue growth.
- 3.The risk of government interference in fuel pricing has increased due to Middle East tensions and domestic inflation concerns.
Table of Contents
- Petrobras: Stable NOC
- Good 1Q26...
- sound debt ratios...
- and liquid balance sheet
- Credit ratings
- Risk factors
- Our bottom line
- Required disclosures
- UBS CIO risk views
- UBS CIO valuation views
- Risk Information
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Authors
Donald McLauchlan
Securities
PETR4Petrobras 6% 2035
Themes
EM Credit StabilityEnergy Sector FundamentalsGeopolitical Impact on State-Owned Enterprises
Regions
Latin AmericaBrazil