Brazil: Oil and Gas
Brava Energia, a Brazilian oil and gas producer listed in São Paulo, reported a third-quarter net loss of R$156 million (about US$28 million) on Monday, 9 November 2026. The company blamed paper losses on its oil price hedges, while its adjusted operating profit rose 22%.
Key Facts
•Result Net loss of R$156 million (US$28 million), against a R$121 million (US$22 million) profit a year earlier.
•Cause Hedge contracts, which fix future oil sale prices, caused a R$1.197 billion (US$217 million) charge.
•Operations Adjusted EBITDA, an operating profit measure, rose 22% in reais to R$1.58 billion (US$287 million).
•Output Production averaged 82,400 barrels of oil equivalent a day, the best quarter this year.
•Next A rig moved to the offshore Atlanta field; first oil, meaning first production, is expected in the first half of 2027.
Brava’s headline loss comes from accounting for its oil price hedges, yet settling those contracts also cost it real cash in the quarter.
What Brava Reported
The company’s net result swung from a R$121 million (US$22 million) profit in the third quarter of 2025 to a R$156 million (US$28 million) loss. InfoMoney, a Brazilian financial news site, reported on 10 November that analysts surveyed by LSEG, the London Stock Exchange Group’s financial data business, had expected a R$132 million (US$24 million) profit.
Net revenue rose 11% from a year earlier to R$3.39 billion (US$615 million), according to the company’s financial statements. Adjusted EBITDA, a measure of operating profit before interest, tax and depreciation, reached R$1.58 billion (US$287 million), or 46.8% of revenue.
Why a Loss Despite Higher Operating Profit
Brava said the loss came from financial expenses that mark its oil hedge contracts to market value. A hedge locks in a future selling price for oil, so when oil trades above that price the contract loses value on paper.
The company put the charge at R$1.197 billion (US$217 million) in its filing with the CVM, Brazil’s securities regulator. It said the accounting effect does not equal a cash outflow, InfoMoney reported.
Some cash did leave the business: settling the hedge contracts cost R$403 million (US$73 million) in the quarter, the company said in the same filing. The net financial result was a R$1.406 billion (US$255 million) loss.
Production and Costs
Production averaged 82,400 barrels of oil equivalent a day (boe/d), the company’s best quarterly average this year, InfoMoney reported. Lifting cost, the expense of bringing a barrel out of the ground, was US$13.4 a barrel, 18% lower than in the second quarter.
Chief financial officer Luiz Carvalho said the results show the team’s focus on capital discipline, safety and operational efficiency, InfoMoney reported. Leverage, which compares net debt with EBITDA, held at 2.0 times.
Cash and the Next Wells
The company ended September with cash of R$4.8 billion (US$871 million), InfoMoney reported. Conversions in this article use R$5.51 per US$1, the market closing rate on 9 November.
At the offshore Papa-Terra field, Brava finished wells PPT-52 and PPT-53 and began production from PPT-52, InfoMoney reported. The Lone Star drilling rig has moved to the offshore Atlanta field to drill two new wells, with first oil, the start of production, expected in the first half of 2027.
What Investors Should Take From This
The quarter shows how hedging can push reported profit and cash in different directions. Adjusted EBITDA grew 22% in reais, but the hedge charge decided the bottom line.
Brava’s next quarterly results will show whether hedge settlements keep draining cash. The Atlanta wells are the next production milestone, with first oil expected in the first half of 2027.
What Is Not Known
This report does not give the size or expiry dates of Brava’s remaining hedge contracts. Both would show how much more paper loss or cash cost could follow.
Frequently Asked Questions
Why did Brava Energia post a loss in the third quarter?
The company booked a R$1.197 billion (US$217 million) financial expense from marking its oil hedges to market value. It said the accounting effect does not equal a cash outflow.
Did Brava’s operating profit fall?
No. Adjusted EBITDA rose 22% from a year earlier to R$1.58 billion (US$287 million), with a margin of 46.8% of revenue.
When will the new Atlanta wells produce?
The company expects first oil from two new wells in the Atlanta field in the first half of 2027. The Lone Star drilling rig has already moved there.
Sources
Brava Energia, results statement, 9 November 2026: Brava investor relations. As reported by InfoMoney, 10 November 2026 (a Reuters report) and Trademap, 10 November 2026 (financial statements). Related: Brava’s second-quarter results, Fitch’s Brava rating upgrade, Brazil news.
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