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Earnings Release

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PRIO reports net revenue of US$ 639 million plus more highlights from the 1Q2024

07 Jun 2024 icone de compartilhamento

  • Average production of 88,300 barrels a day
  • Lifting cost of US$ 7.50 a barrel
  • Issue of two new debentures, at a total amount of roughly US$ 656 million
  • Final decision in the arbitration proceedings regarding the Wahoo Field in favor of PRIO
  • Net revenue of US$ 639 million (13% increase vs. 1Q23)
  • Adjusted EBITDA (ex-IFRS 16) of US$ 467 million (23% increase over 1Q23)

Rio de Janeiro, May 7, 2024 – PRIO (B3: PRIO3), the largest independent oil and gas company in Brazil, recorded net revenue of US$ 639 million in the first quarter of 2024, a 13% increase over the same period in 2023. A major highlight of the period was the concession granted by the International Chamber of Commerce (ICC), which decided in the arbitration proceedings related to the concession of 100% of the Wahoo Field (BM-C-30) in favor of PRIO, not recognizing any breach of contract by the company or its subsidiaries resulting from the declaration of exclusive operation of the field. Accordingly, the company will continue to execute the project individually, retaining the right to 100% of the oil produced, and is currently only awaiting the normalization of IBAMA operations – which have been at a standstill since January 2024 – to begin the development of the field.

The released balance sheet shows that PRIO closed out the 1Q2024 with an adjusted EBITDA of US$ 467 million , a 23% increase on the same basis of comparison with the period of 2023, representing a cash position of US$ 807 million and a net debt-to-EBITDA leverage of 0.6x.

Another highlight for the quarter was the company’s overall production, which grew 45% compared to the same period last year. This increase is the result of the entry of new wells in the second phase of the Frade Revitalization campaign and the acquisition of the Albacora Leste Field, which was completed on January 26, 2023. With average production of 88,300 barrels a day in the quarter, the company achieved a consolidated lifting cost of US$ 7.50 a barrel, reflecting the lower level of production in the period.

For PRIO CFO Milton Rangel, the balance of the first quarter of 2024 was positive. “We had solid results, which consolidate our commitment even though the company faced some operational setbacks in the Frade and Albacora Leste fields, which temporarily impacted our production but have already been resolved, with production having been stabilized. Since the outset of our operations, we have remained committed to optimizing our costs, always maintaining operational efficiency as a priority, with levels of excellence in environmental responsibility and safety,” adds Rangel.

In the financial sphere, PRIO announced the issuance of two new debentures, in the amounts of US$ 403 million settled in the first quarter, and US$ 253 million settled in April, totaling approximately US$ 656 million . Net profit (ex-IFRS 16) in 1Q24 was positive at roughly US$ 224 million.

With an operational strategy aligned with the reduction of carbon emissions by improving operational efficiency and extending the useful life of the fields, the company reduced relative emissions in 1Q24 by 7% compared to 1Q23, reaching average relative emissions of 24 KgCO2e/boe.

In the social sphere, the company shared its growth with society, expanding its activities in encouraging culture and sports as well as social and educational projects through its “I Love PRIO” sponsorship platform. In the first quarter of the year, the company invested in initiatives such as the “I Love PRIO” Comedy awards, the start of sponsorship of Instituto Vini Jr, which supports public schools with a new teaching–learning model based on the language of sports, in addition to renewing the sponsorship involving the “Fronteiras do Pensamento” project as well as support for several other events. Lastly, we highlight the support for the “Mundo Zira” exhibition, a tribute to the work and legacy of late cartoonist Ziraldo; in addition to several other ongoing investment projects, such as the “I Love PRIO” Theater, “Instituto Reação,” “Todos na Luta,” “Favela Brass,” “Dona de Si,” “Sem Barreiras,” and “Rede Cruzada.”