Prio (PRIO3) Q2 2025 earnings summary

Executive summary

• Achieved record production of 123.2 kbpd in June–July 2025, the highest in company history, despite operational disruptions at Frade and scheduled shutdowns.

• Q2 2025 revenue was $508 million, EBITDA $276 million, and net income $154 million, all down sharply year-over-year due to lower Brent prices and higher costs, with sales volume below production leading to increased inventory.

• Completed acquisition of 60% of Peregrino field (deal value $3.35 billion), with integration underway and closing expected by July 2026.

• Advanced Wahoo project with preliminary license, first well drilled, and development on track for first oil after installation licensing.

• Published third annual ESG/Sustainability Report and launched Instituto PRIO to reinforce biodiversity and environmental education commitments.

Financial highlights

• Q2 2025 revenue was $508 million, adjusted EBITDA $276 million, and net income $154 million, with EBITDA margin at 59% and net debt/EBITDA at 1.8x.

• Sales volume was 8 million bbl, below production of 9 million bbl, resulting in higher inventory.

• Lifting cost rose to $13.8/bbl, mainly due to Peregrino's higher cost structure and lower Frade production.

• CapEx for the quarter was $156 million, driven by Wahoo drilling, Peregrino, and TBMT workovers.

• Cash position at end of Q2 2025 was $1,719 million, supported by new debt issuances.

Outlook and guidance

• Peregrino acquisition closing expected between December 2025 and July 2026, with integration and operational improvements ongoing.

• Wahoo field development progressing, with first oil targeted for March 2026 or after installation licensing.

• Focus on maintaining high operational efficiency at Albacora Leste and reducing lifting costs.

• CapEx expected to normalize post-workovers, with Peregrino contributing to a structurally higher but manageable CapEx.