October 31, 2022 / News
PRIO releases 3Q22 balance sheet and reduces lifting costs to single digits, breaking new historical record
Rio de Janeiro, October 31, 2022 – PRIO (B3: PRIO3 – formerly PetroRio), Brazil’s largest independent oil and gas company and a specialist in the recovery of mature fields, closed the third quarter of 2022 with record revenues of US$ 378 mi, bringing the lifting cost to single digits, US$ 9.5 – a reduction of 23% compared to the same quarter last year. The company celebrates the 110% increase over the same period last year, and also record adjusted EBITDA of $286 million (vs. $105 million in 3Q21). Net income reached $154 million.
Production in the period averaged 45.8 kbpd (45% higher than the same quarter last year) and PRIO sold 3.8 million barrels in 8 offtakes in the period, 55% more than in 3Q21. All of this contributed significantly to the company’s revenue increase in the quarter.
“We achieved new production, revenue, lifting cost, and EBITDA records, mainly due to our financial discipline, the Frade Field Revitalization, and the high operational efficiency of the Octopus / Hammerhead Shark Cluster, always maintaining the highest levels of operational safety. It was also the period when we concluded the first training course of Reação Offshore, a program we developed in partnership with Instituto Reação and Todos na Luta, which aims to train specialized workers to enter the labor market and contribute to the development of the sector. We ended the quarter with important achievements both in the social and business fields,” says Milton Rangel, CFO of PRIO.
Friar and Acquisition Revitalization Campaign
In July, production began at well ODP4 in the Frade Field, with initial production of approximately 15,000 barrels of oil per day, well above initial forecasts, doubling the field’s production and increasing the company’s production by 45%. The well was executed in a shorter timeframe than projected, resulting in a 30% cost reduction in the value budgeted for its construction and subsea connection.
The savings in time and cost were repeated in subsequent wells: MPUP3A, the second producing well, started production at 3,500 barrels per day, and the first two injector wells. “In view of this success, we have already started the second phase of the Revitalization Plan, which includes two more producing wells and an injector well,” comments Rangel.
In the period, PRIO also announced the acquisition of the remaining 40% of the Itaipu Field and the incorporation of Dommo, with the possibility for shareholders to receive PRIO shares or cash. The company is also moving forward with the necessary approvals to complete the acquisition of Albacora Leste.
PRIO is the largest independent oil and gas company in Brazil, a pioneer in recovering and increasing the useful life of fields in production. With its assets located in the Campos Basin, the company seeks operational efficiency with process optimization, the use of new technologies and innovative solutions that aim to reduce costs, always with the premise of excellence and safety in operations. PRIO has been growing through acquisitions. Thanks to the constant positive results, it had a strong appreciation, becoming part of the B3 index, the main Brazilian stock exchange index in 2020.