Prio (PRIO3) Q2 2024 earnings summary

Executive summary

• Achieved net revenue of US$728 million in Q2 2024, up 37% year-over-year, with adjusted EBITDA (ex-IFRS 16) of US$546 million, up 64% year-over-year, and net income (ex-IFRS 16) of US$272 million, up 48% year-over-year.

• Average daily production was 89.8 thousand barrels, with offtakes totaling 8.5 million barrels and a lifting cost of US$7.6 per barrel.

• Faced operational challenges due to regulatory delays affecting well interventions and Wahoo field development, but maintained strong operational and financial performance.

• Maintained robust liquidity and capital structure, with a cash position of approximately US$1.2 billion and net debt/EBITDA at 0.4x.

• Expanded operational footprint with acquisitions in key oil fields, including Albacora Leste and Itaipu.

Financial highlights

• Net revenue for Q2 2024 was US$728 million, a 37% increase year-over-year, with adjusted EBITDA of US$546 million and an 80% margin.

• Net income for the period was US$272 million, up 48% year-over-year.

• Lifting cost per barrel was US$7.6, up slightly year-over-year due to lower production.

• Net debt reduced by US$232 million sequentially, with net debt/EBITDA at 0.4x.

• Cash and cash equivalents increased to US$1.2 billion at quarter-end.

Outlook and guidance

• Awaiting IBAMA approval for Wahoo field development, expected to add 40,000 barrels/day to production.

• Albacora Leste aims to increase efficiency to 90% and potentially raise production from 27,000 to near 30,000 barrels per day by year-end.

• Drilling of two new wells at Polvo is underway, with expected incremental production of 1,000–1,500 barrels per well.

• Continued focus on operational efficiency, cost control, and readiness for future M&A opportunities.

• Wahoo field development expected to conclude in the first half of 2025, enabling further production growth and cost synergies.