Prio (PRIO3) Q1 2025 earnings summary

Executive summary

• Completed or signed agreement to acquire the remaining 60% of Peregrino Field for $3.35 billion, adding 202 million barrels of reserves and driving record sales and operational synergies; closing expected late 2025 to mid-2026.

• Achieved record sales volume of 10.2 million barrels in Q1 2025, up 34% year-over-year, with average daily production of 109.3 thousand barrels.

• Initiated drilling in Wahoo Field after environmental licensing, with key wells and FPSO adaptation underway; workovers approved for TBMT.

• Corporate restructuring included the merger of Petro Rio Jaguar into Prio Forte, streamlining operations and enabling tax benefits.

• Maintained focus on cost control, safety, and environmental responsibility amid volatile oil prices and geopolitical uncertainty.

Financial highlights

• Total revenue for Q1 2025 reached $727 million (R$4,440.8 million), up 14% year-over-year, driven by Peregrino consolidation.

• Adjusted EBITDA (ex-IFRS 16) was $447 million (64% margin); net income (ex-IFRS 16) was $345 million, up 54% year-over-year.

• Lifting cost increased to $12.8 per barrel, a 71% rise year-over-year, mainly due to Peregrino's higher cost structure and lower-than-expected production.

• Net profit for the period was R$2,072.7 million, nearly doubling year-over-year.

• Cash position at quarter-end was $725 million (R$4,162.3 million).

Outlook and guidance

• Lifting cost expected to decrease to $12 per barrel as production normalizes and TBMT wells return; further reduction to $8 per barrel projected post full Peregrino and Wahoo integration.

• Wahoo field development expected to conclude in the second half of 2025, targeting full production capacity pending installation license.

• Net debt to EBITDA ratio targeted at 2x, with rapid deleveraging expected as Wahoo comes online and Peregrino is fully integrated.

• Focus remains on operational efficiency, licensing progress, and integrating Peregrino and Pitangola.

• Ongoing pursuit of M&A opportunities and continued operational improvements to offset oil price volatility.