May 03, 2023 / News
PRIO ends first quarter 2023 with record net revenue of US＄ 565 million
– Record net revenue of US＄ 565 million (82% increase compared to 2022)
– Record net income (ex-IFRS 16) of US＄ 231 million (up 1% vs. 1Q22)
– Record adjusted EDITDA (ex-IFRS 16) of US＄ 379 million (66% increase year-over-year)
– Record average production of 61 thousand barrels of oil and record sales of 7.3 million barrels
– Lifting cost of US＄ 9.5 per barrel in 1Q23
– Start-up of production from MUPS (F23P1) and N5P2 (F23P2) wells, in Frade, bringing PRIO daily production to 90kbpd
– Closing Albacora East and beginning PRIO operation in the field
– Closing of Dommo, reaching 100% participation in the Octopus-Shark Shark cluster
Release of PRIO’s first Sustainability Report
Rio de Janeiro, May 4, 2023 — PRIO (B3: PRIO3 – formerly PetroRio), Brazil’s largest independent oil and gas company and a mature field recovery specialist, ended 1Q23 with record net revenues of US＄ 565 million, up 82% year-over-year, and record adjusted EBITDA of US＄ 379 million, up 66%. Net income (ex-IFRS 16) for the period reached US＄ 231 million, an increase of 1% versus that recorded in 2022.
In Q1 2023, PRIO had record average production of 61,000 barrels of oil and sold 7.3 million, and the average gross sales price was US＄ 82.93, down 25% from Q1 2023, mainly due to the decline in the Brent price.
On the cost side, PRIO’s consolidated lifting cost returned to a level of US＄ 9.5/bbl, reflecting the incorporation of Albacora Leste, whose costs started at slightly higher levels than the Company’s other operations, and which will be adjusted over the next few months. We believe that the best hedge for commodity volatility is a low trading cost.
“Despite the challenging macro and geopolitical environments and the international monetary tightening, the first quarter was marked by a significant production increase that reached more than 90,000 barrels of oil per day thanks to the successful Frade Revitalization Plan, the start-up of the Albacora East operation and the high operational efficiency achieved in the Octopus and Hammerhead Shark cluster,” says Milton Rangel, PRIO’s CFO.
Acquisitions and production of the wells
At the end of January, PRIO completed the acquisition of Albacora East, adding approximately 24,000 barrels of oil per day to operations. The company spent February and most of March working on improvements in the areas of operational safety and integrity at FPSO Forte, which should improve the current levels of efficiency, as they do in all their operations.
In the Octopus and Tubarão Martelo cluster, in addition to the incorporation of Dommo in January, through which they achieved 100% participation, the company returned to production at wells TBMT-4H and TBMT-8H and made a successful programmed stoppage aimed mainly at a significant reduction in diesel consumption and a significant increase in efficiency at the multiphase pumps in Octopus. Today the cluster presents an average production of 18 thousand barrels of oil per day.
With two new producing wells, the Frade field has reached the mark of 50 thousand barrels of oil per day. MUP5 (F23P1) came into production in early March with initial production of 8kbpd, while N5P2 (F23P2) started at 11kbpd in the last days of the first quarter. In the coming months, PRIO still plans to finalize one more producing well, ODP5 (F23P3), one injector (F23I1) and at least one exploratory prospect before starting development of Wahoo.
The volume produced at Frade increased by 115% compared to 1Q22 and 5% compared to the previous quarter. The increase against 4Q22 is explained by the start of production at the MUP5 well, a result of the Frade Revitalization Plan, which entered production in March. In the Octopus and TBMT cluster, the volume produced in the quarter was 10% lower than in the previous quarter, due to the 8-day scheduled maintenance shutdown of the cluster in March.
PRIO is the largest independent oil and gas company in Brazil, a pioneer in recovering and increasing the useful life of fields in production. Created in 2015 and with its assets located in the Campos Basin, the company focuses on excellence and the pursuit of operational efficiency, prioritizing the safety of operations and care for the preservation of the environment.
Carioca, PRIO has a purpose that goes beyond O&G, the company extracts the best of its energy to make the world a more efficient place. In addition, it seeks to transform society by encouraging sports, culture, and environmental preservation. The company has just launched a portal that receives proposals from those seeking support for its Link initiatives.
Information for the press
+55 (11) 5502-5412