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Can Petrobras' Pre-Salt Dominance Keep Driving Strong Growth?
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Key Takeaways
Petrobras' pre-salt fields drove 11% output growth in 2025 and supplied nearly 70% of refinery feedstock.
Petrobras has breakeven costs below $40 per barrel, with light crude lowering costs and boosting margins.
Petrobras added 1.7B barrels in 2025 and is allocating nearly 60% of capex to pre-salt developments.
Petróleo Brasileiro S.A. – Petrobras’ (PBR - Free Report) dominance in Brazil’s pre-salt oil fields continues to underpin its long-term growth, and current trends suggest this advantage is far from fading. Its pre-salt assets remain highly productive, driving an 11% production increase in 2025 despite weaker oil prices. Giant fields such as Búzios and Mero consistently deliver strong output, while pre-salt crude now accounts for nearly 70% of the company’s refinery feedstock, enhancing margins through superior oil quality.
A key strength lies in the economics of these assets. With breakeven costs often below $40 per barrel — and expected to decline further — pre-salt projects remain resilient even in volatile pricing environments. Their light, low-sulfur crude also lowers refining costs and emissions, aligning profitability with sustainability goals.
Exploration success further reinforces Petrobras’ position. New discoveries, including in the Aram reservoir and Campos Basin, alongside 1.7 billion barrels added to reserves in 2025, highlight strong reserve replacement and future production visibility.
Looking ahead, Petrobras is doubling down on pre-salt, allocating nearly 60% of its exploration and production capex to these assets and planning multiple new production systems by 2029.
Overall, Petrobras is well-positioned to continue benefiting from pre-salt fields. Its scale, low costs and consistent discoveries provide a durable foundation for sustained production growth, strong cash flows and long-term competitiveness.
Two Other Oil Giants With Pre-Salt Investment
BP p.l.c. (BP - Free Report) is strengthening its upstream portfolio with disciplined investments, leveraging a deep resource base to drive sustained growth. A key focus is BP’s Bumerangue discovery in Brazil’s pre-salt region — its largest global find in 25 years. While still in early exploration, initial results indicate a substantial hydrocarbon column and high liquid volumes. In 2025, BP advanced its upstream strategy with strong operational reliability, multiple project start-ups and new discoveries, reinforcing the strategic importance of pre-salt assets in boosting long-term production and cash flow.
Shell plc (SHEL - Free Report) is deepening its presence in Brazil’s pre-salt sector, where it ranks as the second-largest producer. Shell plays a key role in the Atapu field in the Santos Basin, using advanced technologies to efficiently access reserves beneath thick salt layers. Its pre-salt growth pipeline includes major FPSO-led projects like Mero 3 and 4. In 2025, Shell sanctioned the Gato do Mato deepwater project and increased its stakes in Atapu and Mero, strengthening its long-term position in Brazil’s high-potential pre-salt assets.
The Zacks Rundown on Petrobras
ADS of Petrobras have surged 74.8% in the past three months compared with the Oil/Energy sector’s gain of 28.6%.
Image Source: Zacks Investment Research
From a valuation perspective — in terms of Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) ratio — Petrobras is trading at a discount compared with the industry average, making it attractive for investors as more upside is still left in the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate implies 18.9% year-over-year growth in Petrobras’ 2026 earnings per share. This anticipated growth aligns with the optimism embedded in the stock’s current price. In other words, investors are paying up for Petrobras at a point when the fundamentals of the company are expected to accelerate.
View the Zacks #1 Rank List
Image: Shutterstock
Can Petrobras' Pre-Salt Dominance Keep Driving Strong Growth?
Key Takeaways
Petróleo Brasileiro S.A. – Petrobras’ (PBR - Free Report) dominance in Brazil’s pre-salt oil fields continues to underpin its long-term growth, and current trends suggest this advantage is far from fading. Its pre-salt assets remain highly productive, driving an 11% production increase in 2025 despite weaker oil prices. Giant fields such as Búzios and Mero consistently deliver strong output, while pre-salt crude now accounts for nearly 70% of the company’s refinery feedstock, enhancing margins through superior oil quality.
A key strength lies in the economics of these assets. With breakeven costs often below $40 per barrel — and expected to decline further — pre-salt projects remain resilient even in volatile pricing environments. Their light, low-sulfur crude also lowers refining costs and emissions, aligning profitability with sustainability goals.
Exploration success further reinforces Petrobras’ position. New discoveries, including in the Aram reservoir and Campos Basin, alongside 1.7 billion barrels added to reserves in 2025, highlight strong reserve replacement and future production visibility.
Looking ahead, Petrobras is doubling down on pre-salt, allocating nearly 60% of its exploration and production capex to these assets and planning multiple new production systems by 2029.
Overall, Petrobras is well-positioned to continue benefiting from pre-salt fields. Its scale, low costs and consistent discoveries provide a durable foundation for sustained production growth, strong cash flows and long-term competitiveness.
Two Other Oil Giants With Pre-Salt Investment
BP p.l.c. (BP - Free Report) is strengthening its upstream portfolio with disciplined investments, leveraging a deep resource base to drive sustained growth. A key focus is BP’s Bumerangue discovery in Brazil’s pre-salt region — its largest global find in 25 years. While still in early exploration, initial results indicate a substantial hydrocarbon column and high liquid volumes. In 2025, BP advanced its upstream strategy with strong operational reliability, multiple project start-ups and new discoveries, reinforcing the strategic importance of pre-salt assets in boosting long-term production and cash flow.
Shell plc (SHEL - Free Report) is deepening its presence in Brazil’s pre-salt sector, where it ranks as the second-largest producer. Shell plays a key role in the Atapu field in the Santos Basin, using advanced technologies to efficiently access reserves beneath thick salt layers. Its pre-salt growth pipeline includes major FPSO-led projects like Mero 3 and 4. In 2025, Shell sanctioned the Gato do Mato deepwater project and increased its stakes in Atapu and Mero, strengthening its long-term position in Brazil’s high-potential pre-salt assets.
The Zacks Rundown on Petrobras
ADS of Petrobras have surged 74.8% in the past three months compared with the Oil/Energy sector’s gain of 28.6%.
Image Source: Zacks Investment Research
From a valuation perspective — in terms of Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA) ratio — Petrobras is trading at a discount compared with the industry average, making it attractive for investors as more upside is still left in the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate implies 18.9% year-over-year growth in Petrobras’ 2026 earnings per share. This anticipated growth aligns with the optimism embedded in the stock’s current price. In other words, investors are paying up for Petrobras at a point when the fundamentals of the company are expected to accelerate.
Image Source: Zacks Investment Research
PBR stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.