March 02, 2023 / News
With net revenue of US$ 1.2 billion, PRIO reaches a new record in 2022
– Record net revenue of US$ 1.2 billion (54% increase compared to 2021)
– Record net income (ex-IFRS 16) of $711 million (193% increase compared to 2021)
– Record adjusted EDITDA (ex-IFRS 16) of $900 million (73% increase year-on-year)
– Production of 14.8 million barrels of oil (average of 40 Mboepd)
– Lifting cost of US$ 8.6 per barrel in 4Q22, reaching the lowest level in the company’s history
– Conclusion of the successful 1st phase of the Frade Revitalization Plan and beginning of the 2nd phase
– Issue of US$ 370 million in debentures in the local market
– Acquisition of Albacora Leste, the Hunter Queen drilling rig and interest in Itaipu
– Reação Offshore in partnership with Instituto Reação and Todos na Luta with 240 people trained and 80 hired
– Preparation of PRIO’s first Sustainability Report
Rio de Janeiro, March 2, 2023 – PRIO (B3: PRIO3 – formerly PetroRio), Brazil’s largest independent oil and gas company and a specialist in the recovery of mature fields, ended 2022 with record net revenues of US$ 1.2 billion, up 54% year-on-year, and record adjusted EBITDA of US$ 900 million, up 73%. Net income (ex-IFRS 16) for the year reached $711 million, an increase of 193% versus that recorded in 2021, driven by higher production, sales and Brent crude prices.
Significantly contributing to the company’s revenue increase were the fact that production averaged 40.4 kbpd throughout the year, and 47.6 kbpd in the last quarter, 47.4% and 28% higher compared to 2021, respectively; and, the 18% reduction in lifting costs compared to the previous year, hitting, once again, the lowest level ever recorded.
In the last quarter of 2022, PRIO sold 2.3 million barrels, for a total of 12.3 million barrels traded in the year, with an average gross sales price of $100.12, up 35% from 2021. In total, the company produced 14.8 million barrels.
Under new business, PRIO completed the acquisition of Albacora Leste in the first quarter of 2023, adding a production of about 30,000 barrels of oil per day and more than 240 million barrels of proved reserves, taking the company to a new level. In all, the company increased its production (already considering the stake in Albacora East) by more than 2 times between the first months of 2022 and the first months of 2023.
“Also in 2022, we acquired the remaining 40% of the Itaipu field and the Hunter Queen, a sixth generation semi-submersible rig, which will bring us flexibility and even greater cost control in future drilling campaigns,” adds Milton Rangel, CFO of PRIO.
To finance all these initiatives, besides the strong cash generation, PRIO carried out an issue of approximately US$ 400 million in local debentures (original issue in Reais, with currency swap), in better conditions than those found in the international market at the time and in an unprecedented movement in the sector in the country. This lengthens PRIO’s debt profile at competitive costs, a goal that continues into the future.
In 2022, PRIO took an important step in its sustainability journey and started structuring itself towards the ESG agenda. With the full involvement of top leadership, PRIO conducted a diagnosis of its ESG practices and a perception study with different stakeholders that led to a deep understanding of the company’s current ESG moment, the positioning of its peers, trends, risks, and market opportunities.
The company also defined a materiality matrix, according to recognized frameworks such as GRI and SASB, and underwent a maturity assessment on these material topics, which allowed the definition of an action plan to continue in the continuous improvement of its ESG journey. Some of the actions in this plan have already been carried out, such as the carbon emissions inventory to be prepared by 2022, a training program on ESG issues in the sector in which PRIO operates directed at all levels of the organization, and the production of its first Sustainability Report.
“Respecting society and the environment, we started a robust work to measure and certify our CO2 emissions, which showed a reduction from 31.4 kgCO2/bbl in 2021 to 26.8 kgCO2/bbl in 2022, a decrease of approximately 15%. Along with this work, we hope to soon release our first Sustainability Report, presenting even more information about emissions, water use, waste treatment, and presenting our projects focused on the environment and biodiversity,” he concludes.
PRIO seeks to transform society by encouraging sports, culture, and the preservation of the environment. The company believes that as important as looking inward, is to look outward and give back to society. In 2022, the initiatives supported through the tax incentive law had larger and more comprehensive scopes. A great example was Reação Offshore, a technical training initiative created by the Reação and Todos na Luta institutes, which trained 240 people to work in the offshore industry. Of these, 80 were hired by PRIO after completing the course.
In addition, the company has also supported the Brazilian Symphony Orchestra, the Casa Grande Theater, the Laura Alvim Culture House, the Favela Brass, the Neojibá Orchestra, and several socio-environmental initiatives in the Campos Basin communities.
The year 2023 already started with news, we concluded the acquisition of Albacora Leste and took over the operation of the field, adding a production of about 30 thousand barrels of oil per day and more than 240 million barrels of proved reserves, taking PRIO to a new level.
With the success of the first phase of the Frade revitalization campaign, PRIO has advanced the second phase and has been working to deliver two more producing wells and an injector well still in the first quarter of 2023. After the completion of this second phase, the company will evaluate a third phase. In Wahoo, meanwhile, the subsea tieback of this unit with Frade, should be started mid-year, and the expectation for first oil is 2024.
PRIO (www.prio3.com.br) 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 initiatives https://investidor.bussolasocial.com.br/prio/editais/portaldeprojetos_prio.
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