PRIO achieves record production and closes the second quarter of 2023 with net revenue of US$ 532 million

02 Aug 2023

Record average production of 91,000 barrels of oil per day
Net revenue increases by 41% compared to 2Q22
Net income (ex-IFRS 16) of US$ 185 million (32% growth versus 2Q22)
Adjusted EBITDA (ex-IFRS 16) of US$ 333 million (24% increase over 2Q22)
Record-breaking lifting cost of US$ 7.4 per barrel
Start of production of the ODP5 well, in the Frade Field, taking PRIO to daily production of 100 kbpd

Rio de Janeiro, August 02, 2023 – PRIO (B3: PRIO3 (formerly PetroRio), the largest independent oil and gas company in Brazil, specializing in the recovery of mature fields, closed out 2Q23 with a record average production of 91,000 barrels of oil per day. The Company’s net revenue closed at US$ 532 million in the quarter, a 41% increase compared to the same period the previous year. Net profit reached US$ 185 million, a 32% increase compared to 2Q22. Adjusted EBITDA was US$ 333 million, a growth of 24% for the same period.

In terms of costs, PRIO consolidated a lifting cost of US$ 7.45 per barrel, a record achieved thanks to the increase in production in the Frade Field, the normalization of production in the Polvo and Tubarão Martelo cluster, stabilization of OPEX costs, and production from the Albacora Leste Field.

“Reaching a new level of production consisting of 100,000 barrels of oil a day, at the lowest lifting cost in our history, is a significant milestone for our company. This achievement demonstrates the success of our growth strategy, which is based on acquiring and developing production assets, always maintaining levels of excellence in environmental responsibility, safety, and operational efficiency,” states PRIO CFO Milton Rangel.

In the quarter, PRIO sold 7.1 million barrels, a 114% increase compared to 2Q22, at an average gross price of US$ 77.67, a 28% reduction in the amount recorded in the same period the previous year, mainly due to the fall in the Brent price.

Production and operational efficiency of wells

The Frade Revitalization Plan consolidated the field’s daily production at nearly 60,000 barrels per day with the completion of yet another producing well, ODP5 (F23P3), in early July, which added 8,000 barrels of oil to the Company’s overall production.

During the second quarter, PRIO also consolidated efforts to stabilize the Albacora Leste operation, which began producing roughly 23,000 barrels (PRIO’s share) per day, with operational efficiency of 68.8% – higher than the first quarter of 2023 (54.8%). However, there is an expectation of an improvement in the asset’s operational efficiency index after the Company completes corrective maintenance to stabilize the asset’s operational efficiency.

With the normalization of operations, the Polvo and Tubarão Martelo cluster presented an average daily production 41% higher than the one recorded in the previous quarter, thanks to the scheduled maintenance shutdown in March and the resumption of production from wells TBMT-4H and TBMT-8H in March and April. As a result, the cluster’s operational efficiency for the quarter was approximately 97%.

In the second quarter, PRIO also remained focused on continuing the processes of the Wahoo project, with the aim of meeting the production schedule for the asset’s first oil in the first half of 2024.

Environment

PRIO also closes out the second quarter with a record reduction in its carbon footprint. The average relative emissions for 2Q23 was 21 kgCO2e/boe (17 kgCO2e/boe excluding Albacora Leste), compared to 22 kgCO2e/boe in 4Q22. This reduction is due to a number of improvements that the Company has been carrying out in its assets in order to align the reduction of its carbon footprint with the operational strategy of improving the efficiency of its facilities.