TacticScaleWhat Petroleo Brasileiro SA Petrobras Does & How It Makes Money (PBR)
Updated October 2026 · reflects Petroleo Brasileiro SA Petrobras's latest reported financials
Brazil's integrated oil and gas producer, refiner, and energy company. Petrobras earns most of its money by producing crude oil and natural gas, refining much of it in its own domestic refineries, and selling the fuels, oil products, and exports.
How Petroleo Brasileiro SA Petrobras makes money
Petrobras earns most of its money by producing crude oil and natural gas, refining much of it in its own domestic refineries, and selling the fuels, oil products, and exports. It also brings in revenue from trading and transporting natural gas and LNG, generating electricity, and selling fertilizers, biodiesel, and petrochemical-related products.
What Petroleo Brasileiro SA Petrobras does
Founded in 1953 and headquartered in Rio de Janeiro, Petrobras is Brazil's integrated oil and gas company, covering everything from the wellhead to the refinery. Its Exploration and Production segment finds and produces crude oil, natural gas liquids, and natural gas, mainly to supply its own refineries in Brazil. The Refining, Transportation & Marketing segment turns that crude into oil products, handles logistics and exports, trades products, makes fertilizers, and holds stakes in petrochemical companies. A third segment, Gas & Low Carbon Energies, trades natural gas and electricity, transports and trades LNG, runs thermoelectric power plants, processes natural gas, and produces biodiesel. It also houses the company's renewable and low-carbon businesses. Petrobras sells in Brazil and in markets including China, the United States, the wider Americas, Asia, Europe, and Singapore, which gives investors exposure to both Brazil's domestic energy market and global oil trade.
Products & services
- Crude oil and natural gas
- Refined oil products and fuels
- Liquefied natural gas (LNG) transport and trading
- Thermoelectric power generation
- Biodiesel
- Fertilizers
What is Petroleo Brasileiro SA Petrobras worth?
On an owner-earnings DCF, Petroleo Brasileiro SA Petrobras's most-likely value is about $39 versus a recent price near $25 (53% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$27) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
PetroChina (601857.SS) · PBF Energy (PBF) · China Petroleum & Chemical (600028.SS)