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Disclosure of Results
PRIO records total revenue of US$ 498 million in 3Q24
- Acquisition of 40% of Peregrino
- Total revenue of US$ 498 million
- Adjusted EBITDA (ex-IFRS 16) of US$ 328 million
- Net income (ex-IFRS 16) of US$ 165 million
- Net debt / adjusted EBITDA of 0.5x
Rio de Janeiro, November 5, 2024 – PRIO (B3: PRIO3), the largest independent oil and gas company in Brazil, recorded net revenue of US$ 498 million in the third quarter of 2024. The major highlight for the period was the acquisition of 40% of Peregrino field, that will result in an increase of approximately 36,000 barrels per day in the company’s production, without adding operational complexity.
Aiming to prepare for the transaction while maintaining healthy leverage and strengthening the cash position, PRIO contracted approximately US$ 1.0 billion in bilateral debt this quarter. As a result, the company ended 3Q24 with US$ 2,160 million in cash and leverage of 0.5x (net debt/EBITDA), after paying US$ 192 million to sign the contract. After completion of the acquisition, leverage levels will remain within healthy and conservative ranges of up to 1.2x of net debt/EBITDA. The increase in PRIO’s net debt position is mainly due to the payment of 10% of the value for the acquisition of 40% of the Peregrino field on the date the contract was signed and the purchase of materials mainly for the development of Wahoo, as well as the acquisition of materials for Albacora Leste and the workover at Tubarão Martelo.
“We closed the third quarter of 2024 with an important achievement, in line with one of our core pillars, which is to generate value through acquisitions. We have signed the contract to acquire 40% of the Peregrino field and hope that the transaction will be concluded soon so that we can start operations,” said Roberto Monteiro, CEO of PRIO.
The company recorded a positive net income (ex-IFRS 16) of US$ 165 million in the quarter,and adjusted EBITDA (ex-IFRS 16) of US$ 328 million. Even keeping its operating costs (OPEX) constant and optimized, the factors listed above resulted in an average production of 70.3 thousand barrels per day in the quarter and a lifting cost of US$ 9.8 per barrel.
It is worth emphasizing that the company’s entire production was strongly affected by scheduled maintenance at the Albacora Leste and Frade fields, as well as the TBMT-8H, TBMT-10H and TBMT-4H wells (the last two of which have not yet been approved for workover) in the Polvo and Tubarão Martelo clusters.
In addition to the challenges faced during the period, Francilmar Fernandes, PRIO’s Chief Operating Officer, commented on the operation of FPSO Forte: “We continue working to overcome the challenges related to the efficiency of FPSO Forte, with the installation of two turbines and a compressor fully overhauled during October, November and December, and remain confident that we are on the right track to achieve the same reliability levels recorded in our other assets,” the executive explained.
The trading strategy adopted by PRIO has been consolidated as an important competitive differential, allowing for more favorable conditions in oil negotiations through the “delivery to client” modality, which enables the company to access strategic markets with sales directed mainly at China, the USA and Europe.
On the sustainability area, the company published its second annual report for the year 2023, stressing its commitment to transparency with stakeholders.
Following the strategy of further strengthening the brand’s presence in the cultural, social and sport scene through the I💙 PRIO sponsorship platform, we highlight the I💙 PRIO Winter Festival and the 14th edition of ArtRio, recognized as one of the most important art events in Latin America, among others.
Learn more
To access the full results report, click here. To learn more details, please join in on the conference call on Wednesday (6), at 3 pm Brasília time, at this link.
Nice to meet you, we are PRIO
We are 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, with five production assets in the Campos Basin, we focus on excellence and the pursuit of operational efficiency, prioritizing safety in operations and care about people and preservation of the environment.
Headquartered in Rio de Janeiro, PRIO’s purpose goes beyond O&G: we want to draw the best from our energy to transform Brazil into a more efficient place. In addition, we seek to involve and return this growth to society by encouraging sport, culture, and the education initiatives – that are part of our I ❤ PRIO sponsorship platform.
Website: https://prio3.com.br/
LinkedIn: https://www.linkedin.com/company/prio3
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I❤ PRIO: https://www.instagram.com/iloveprio
Press service: [email protected]