Petrobras Reports US$ 10 Billion Profit, But Pays Less Dividends Than Rivals

The 15 largest oil companies in the world with comparable data earned an average of US$ 85 billion in the second quarter of 2026. This figure represents a 134% increase compared to US$ 36.3 billion in the first quarter, driven by the recovery of oil prices throughout the year.

The podium was occupied by ExxonMobil (US$ 14.5 billion), Chevron (US$ 12.1 billion), Shell (US$ 10.8 billion), and Petrobras (US$ 10.1 billion). Together, these four companies accounted for about 56% of the total net profit of the group analyzed by the consulting firm Elos Ayta.

So far, the numbers seem to tell a simple story: oil prices rose, and everyone made money. But when looking at margins and dividend policies, the narrative changes. This is where Petrobras stands out for contradictory reasons.

Petrobras Has the Best Margin Among Industry Giants
In pure profitability, the Brazilian company remains unbeatable among large integrated firms. In the second quarter, Petrobras reported a net margin of 30.97% and an EBITDA margin of 55.36%.

The numbers of its rivals lag far behind. ExxonMobil recorded a net margin of 12.83% and EBITDA of 24.46%. Chevron reported 17.43% and 33.14%. Shell had 11.21% and 23.92%. BP, the laggard among the giants, stood at 6.18% and 19.42%.

This means that for every dollar of revenue, Petrobras converts almost three times as much into net profit compared to ExxonMobil. The structural advantage comes from the extraction cost of pre-salt oil, which remains among the lowest in the world, as previously analyzed in energy sector coverage.

If the Margin Is Better, Why Did Dividends Decrease?
Here lies the point that interests PETR4 investors the most. Despite net profit growing by 62% compared to the previous quarter, Petrobras reduced its dividends from US$ 2.2 billion to US$ 1.5 billion. It was the only one among the four largest payers to cut distributions during this period.

ExxonMobil disbursed US$ 4.3 billion in dividends. Chevron paid US$ 3.5 billion. Shell distributed US$ 2.2 billion. All maintained or increased their distributed volumes.

The explanation involves two movements that altered Petrobras's cash equation in recent years. The first was the change in the shareholder remuneration policy. Until mid-2023, the company allocated 60% of the difference between operational cash flow and investments to dividends. This percentage was reduced to 45% of free cash flow.

The second factor is the significant increase in capex. Petrobras's investments nearly doubled compared to 2022 levels, according to the company's own data. Since free cash flow is calculated after investments, higher capex compresses the base on which dividends are calculated.

The Historical Context Explains the Change in Priority
In 2021 and 2022, Petrobras was experiencing the peak of a long deleveraging cycle. Asset sales, capital discipline, and high barrel prices created a perfect storm for distributing cash. The result was the payment of about R$ 194 billion in dividends in 2022 alone, a record that turned the stock into a global yield reference.

Now, the priority has shifted back to include growth and production expansion. The company is investing in new pre-salt fields, the equatorial margin, and energy transition projects. It is a strategic choice that redistributes generated cash among shareholders, investments, and debt management.

In practice, even with oil at favorable levels in 2026, the direct benefit to shareholders is likely to be less than it was during that exceptional two-year period. The company generates more but also retains more.

The Biggest Gains Came from Those Starting from Below
Outside the group of giants, the largest percentage variations in the quarter came from smaller companies or those more dependent on refining. Phillips 66 surged from US$ 0.2 billion to US$ 3.8 billion, an increase of 1,758%. Marathon Petroleum rose from US$ 0.5 billion to US$ 5.1 billion, a growth of 906%.

Among the large companies, Chevron led with a 446% increase, followed by ExxonMobil with 247%. Petrobras, with a 62% increase, had more modest growth in percentage terms but started from a high base in the first quarter.

The only company to register a decline was Occidental Petroleum, whose profit fell by 11%, from US$ 3.3 billion to US$ 3 billion. Still, it maintained a net margin of 35.98%, the highest among all analyzed oil companies.

What This Means for Investors in Oil Companies
The quarter reinforces a reading that the market has been making for months: Petrobras continues to be one of the most efficient cash-generating machines in the global energy sector. Its margins are higher than any comparable competitor.

But operational efficiency and generosity towards shareholders are different things. The change in dividend policy and the increase in capex have created a new balance. Those who bought PETR4 expecting to repeat the yields of 2022 need to recalibrate their expectations, as discussed in previous analyses of the commodities sector.

For investors looking beyond dividends, the relevant data is different: Petrobras is reinvesting in production at a time of favorable prices. If the projects deliver volume, future cash flow could be even greater. The question is how much of this additional cash will be shared with shareholders.

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