SAO PAULO, Aug 7 (Reuters) - Brazilian oil firm

Petrobras on Thursday announced dividends and

interest on equity to shareholders of 8.66 billion reais ($1.60

billion) as it reported a swing to a second-quarter net profit

of 26.7 billion reais.

The result represented a significant improvement from a net

loss of 2.6 billion reais for the same period a year earlier.

"We had excellent operational performance in the second

quarter, driven by the implementation of new production systems

and improved efficiency in the fields in operation," Chief

Financial Officer Fernando Melgarejo said in the company's

earnings report.

Adjusted earnings before interest, taxes, depreciation and

amortization (EBITDA) rose 5.1% in the period, to 52.3 billion

reais, the company said in the report.

Recurring net profit, which strips out one-off items,

remained stable versus the first quarter of the year, despite a

significant decline in Brent prices, Melgarejo said.

Brent oil prices averaged $67.82 per barrel in the second

quarter, Petrobras said, compared to $75.66 per barrel in the

first three months of the year.

Capital expenditure, or capex, totaled $4.4 billion in the

quarter, up 9% from the previous three months and in line with

the company's targets, it said.

In a separate presentation, Petrobras said it expects its

oil and gas output to hit the upper end of its target in 2025.

Its full-year production guidance stands at 2.8 million

barrels of oil equivalent per day (boed), with 4% leeway.

($1 = 5.4156 reais)