-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Total production reached 3.23 MMboed in 1Q26, up 16.1% Y/Y, driven by FPSO ramp-ups in Buzios, Mero, Marlim and Voador fields. Pre-salt oil production increased 17.8% to 2,189 Mbpd, representing 85% of total oil output, while refining utilization reached 95%, up 6pp Q/Q with March hitting 97.4% (highest in over a decade). The strong operational performance reflects successful execution of the company's pre-salt development strategy and refining optimization initiatives. Oil products production rose 6.7% Q/Q to 1,816 Mbpd, with diesel up 7.4% and net exports increasing 1.3% to 852 Mbpd as imports declined 32.2%. We believe the company's strategic positioning benefits from geopolitical dynamics, with China comprising 62% of oil exports (up from 33% Y/Y), highlighting Brazil's role as a key supplier amid Middle East tensions. The 10 wells connected during the quarter and rapid P-78 gas injection timeline demonstrate operational efficiency in our view.