Brava Energia (BRAV3) Q4 2024 earnings summary

Executive summary

• Completed merger with Enauta and Maha, forming a leading diversified oil and gas company in Latin America, integrating upstream, midstream, and downstream operations.

• Achieved record production in February 2025, reaching 73.9 kboe/d, up 88% from 4Q24, driven by ramp-up at Atlanta, Papa-Terra, and Parque das Conchas.

• Significant milestones included first oil from FPSO Atlanta, Papa-Terra production resumption, and acquisition of a 23% stake in Parque das Conchas.

• Operational efficiency improved, especially in onshore assets, with reduced lifting costs and realization of merger synergies.

• Corporate restructuring and leadership transitions supported integration and future growth.

Financial highlights

• 2024 proforma net revenue reached R$10,095.9 million, up 44.1% YoY; 4Q24 net revenue was R$1,949.8 million.

• Adjusted EBITDA for 2024 was R$3,507.7 million (+51.3% YoY), margin 34.7%; 4Q24 Adjusted EBITDA was R$505.2 million, margin 25.9%.

• 4Q24 net loss was R$1,028.1 million, mainly due to non-cash FX impacts; 2024 net loss was R$1,132.6 million.

• Cash and equivalents at 4Q24 were R$6,095.5 million (US$984.4 million); net debt was R$12,063.6 million (US$1,948.2 million), leverage at 2.8x (USD basis).

• Lifting cost in 4Q24 was US$17.5/boe (-18.7% YoY), with onshore at US$16.9/boe and offshore at US$22.2/boe.

Outlook and guidance

• Production ramp-up expected to continue in 2025, with further well connections at Atlanta and Papa-Terra and Manati production resuming.

• Capex to decrease in 2025 as major projects complete, with focus on operational efficiency, cost reduction, and selective investment.

• Ongoing implementation of merger synergies and focus on ESG commitments.

• Leverage target set at 1x-1.25x EBITDA, with rapid deleveraging anticipated as production and cash flow rise.

• Dividend and share buyback capacity to increase as leverage falls below 1.5x, aiming for strong payouts from 2026.