On August 20, Petrobras rose 3.24% in pre-market trading, as market sentiment was lifted by a major exploration breakthrough.

On the news front, Petrobras announced the discovery of hydrocarbons at the Morpho exploration well in the ultra-deepwater area offshore Amapá, with wireline logging and rock indicators confirming hydrocarbon-bearing intervals. The company's exploration and production division head stated that the oil prospects from the Amazon River mouth drilling are highly promising. Drilling operations have cost approximately $300 million to date, with the block 100% owned and operated by Petrobras as part of a strategic initiative to establish reserves in frontier areas.

Additionally, the company's Q2 results provided fundamental support, with adjusted net profit surging 170% year-over-year, production rising 14.1% YoY, and Q2 adjusted EBITDA reaching 93.84 billion reais, exceeding market expectations of 91.37 billion reais. Operating cash flow and free cash flow grew 63% and 122% respectively on a year-over-year basis, reinforcing investor confidence in the stock.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)