Petroreconcavo (RECV3) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue was R$786.254m, adjusted EBITDA R$379m, net income R$236.083m and free cash flow R$134m; 9M revenue and net income were below prior year.

• Average production was 23.7k boe/d, down 2% QoQ and 10% YoY; production stabilization, cost discipline and secondary recovery remained priorities.

• Commercial agreements improved visibility for Potiguar oil sales through 2030 and Bahia gas processing from 2028–2037; the Miranga UPGN investment was suspended.

• Four fields with water-injection projects showed early signs of improved oil production, supporting secondary recovery and longer-term production stability.

Financial highlights

• Net revenue fell 3% QoQ and was flat YoY; adjusted EBITDA fell 4% QoQ and rose 8% YoY. Reported EBITDA was R$360m, excluding R$19m of non-recurring items from adjusted EBITDA.

• Net income was R$236.083m versus R$121.937m YoY, up 94%; it rose 16% QoQ. The financial result swung to R$77.960m income from R$8.980m expense a year earlier.

• Free cash flow was R$134m, up 81% QoQ; 9M free cash flow was R$288m, up 58% YoY.

• 9M revenue was R$2.279bn, down 7% YoY; 9M net income was R$562.563m, down 4%.

• Gas and byproducts revenue rose 4% to R$291m; oil sales revenue was R$471m, down 7% QoQ, and services revenue was R$25m.

Outlook and guidance

• Management expects production to stabilize and return to pre-maintenance levels; drilling campaign preparations at Potiguar continued after PR-21 maintenance.

• 2026 CapEx was reset from more than R$1.1bn to R$850m; delivery is expected near that level, with some allocations potentially shifting into 2027. 2027 CapEx guidance was ~R$800m–850m.

• Secondary-recovery projects at Tiê and Sabiá da Mata are underway; projects at Sabiá Bico-de-Osso and Brejinho aim to mitigate natural decline. Results depend on reservoir characteristics and may not be immediate.

• Shell’s firm dry-gas sales agreement covers 300 thousand m³/day for 2027.