May 12, 2026 [Reuters]- Brazil’s state-run oil firm Petrobras ​reported a drop in first-quarter net profit, missing market expectations, ‌as the impact of higher oil prices from the Middle East conflict had yet to flow through to results, it said in a Monday filing.

Petrobras posted ​a net profit of around 32.7 billion reais ($6.68 billion), down ​7.2% from a year earlier, while approving a payout of ⁠9 billion reais to shareholders in a separate filing.

The company said ​the surge in oil prices that followed the start of the U.S.-Israeli ​conflict with Iran in late February would only be felt in the second quarter.

Most Petrobras exports are shipped to Asian markets, with pricing typically being based on ​quotations from the month prior to the cargo’s arrival, the firm ​said.

The average Brent crude price for the first quarter was $80.60, only 6.5% above prices ‌a ⁠year earlier, according to the firm’s results, while Brent prices surged past $100 after the closing of the Strait of Hormuz.

The Brazilian oil major has become increasingly reliant on its exports to generate revenue. While ​revenue from exports ​rose 28.3% in ⁠the first quarter, its revenue from sales in Brazil dropped 9.4% over the same period.

On the whole, ​net revenue rose slightly by 0.4%, to 123.69 billion ​reais, below ⁠the 136.08 billion reais the market had forecast.

Core earnings, as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 59.64 billion ⁠reais, ​a 2.4% fall. Analysts expected 64.48 billion ​reais.