CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Q1 saw record oil and gas production with net income of $6.2B, including $2.5B in one-offs, while adjusted net income of $4.5B declined 4.5% sequentially but rose 12.6% Y/Y. Adjusted EBITDA reached $11.7B, up 7.3% on higher Brent prices that averaged $80.61/bbl and increased domestic product sales, though sales remained flat at $23.5B despite production growth of 3.7%. The early startup of FPSO P-79 added 180,000 bbl/day capacity with three additional Buzios FPSOs scheduled for 2027, positioning the company for continued production growth. Management noted Q2 should prove far stronger as elevated prices from the Iranian war will be reflected in results. Operating cash flow totaled $8.4B, down 17.3% sequentially, while net debt increased to $62.1B with leverage at 1.43x remaining within target range. We expect the company to benefit from the ongoing export balance of 81,000 bbl/day expected in Q2 and continued oil price strength from Middle East geopolitical tensions.