Brazilian state oil company Petrobras has reported a second-quarter (Q2) net profit of 26.7bn reais.

This marks a substantial turnaround from a net loss of 2.6bn reais in the same period last year, according to a Reuters report.

Despite a considerable drop in Brent oil prices, Petrobras' recurring net profit remained stable compared to Q1.

Petrobras also announced dividends and interest on equity to shareholders totalling 8.66bn reais.

Petrobras CFO Fernando Melgarejo said: "We had excellent operational performance in the second quarter, driven by the implementation of new production systems and improved efficiency in operating fields.

“These factors allowed us to increase oil and gas volumes, positively impacting our financial results and offsetting the impacts of the drop in Brent prices. Net income, excluding the unique events of the period, remained at the same level as the previous quarter, when we operated with 10% more Brent.”

Furthermore, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) saw a 5.1% increase to 52.3bn reais.

The company noted that this stability was maintained even with Brent prices averaging $67.82 per barrel (bbl) in Q2, down from $75.66/bbl in the previous quarter.

The company's capital expenditure reached $4.4bn in Q2, a 9% increase from Q1, aligning with Petrobras' strategic targets.

Furthermore, Petrobras expects its oil and gas output to reach the upper end of its 2025 target, with full-year production guidance set at 2.8 million barrels of oil equivalent per day, allowing for a 4% variance.

Highlighting a robust production performance, Petrobras reported a 7.6% increase in oil production during Q2, achieving 2.32 million barrels per day in Brazil.

This boost is largely due to the ramp-up of new production vessels, which have significantly contributed to the output.

In Q2, four floating production vessels enhanced productivity, with one reaching peak production and another starting operation ahead of schedule.