Brazil Q3 Earnings: Petrobras Delivers Strong Profit on Higher Output as Sector Results Diverge

Overview

• Petrobras posted net income of R$32.7 billion (US$6.03 billion), topping analyst estimates as production rose 8.1% and operating costs fell, with adjusted Ebitda at US$11.7 billion and investments at US$5.5 billion in the quarter.
• GPA returned to profit with R$133–137 million after recognizing R$418 million in tax credits enabled by a regulatory change, while same-store sales rose 4.1% and leverage increased to 1.5x.
• Fashion retailers showed recovery, with C&A’s net income up 62% to R$69.5 million on higher Ebitda and sharply lower leverage, and Guararapes’ profit up 63% to R$74 million alongside record margins.
• Magazine Luiza reported R$84.6 million in net income, down 17.4% year over year, as weaker e-commerce and a worse financial result offset gains in physical stores and a higher merchandise margin.
• Energy producers were mixed: Prio’s profit fell 44% to US$91.6 million after a Peregrino field outage, Axia Energia reported a R$2.18 billion adjusted profit but a R$5.45 billion statutory loss with higher leverage, and Brava’s profit dropped 75.8% on lower volumes and inventory effects.