Prio (PRIO3) Q1 2026 earnings summary

Executive summary

• Achieved record production of 155.4 kbpd and record sales of 14.8 million barrels in Q1 2026, driven by the start-up of the Wahoo field and operational improvements across assets.

• Operational efficiency at Albacora Leste reached 95.4%, a company record, with lifting costs reduced to $9.4/bbl, the lowest since 2023.

• Net income (ex-IFRS 16) rose 33% year-over-year to $460 million, with adjusted EBITDA up 91% to $852 million.

• Major field developments included the start of production at Wahoo, ongoing Peregrino integration, and environmental license amendment for Frade.

• Continued focus on cost control, capital discipline, and sustainability initiatives, including biodiversity and community projects.

Financial highlights

• Q1 2026 revenue reached $1.2 billion, a 67% increase year-over-year, with EBITDA of $850–$852 million and net income of $450–$460 million.

• Sold 14.8 million barrels at an average Brent price of $83.50; FOB equivalent sales price $75.34.

• Lifting cost reduced to $9.4/bbl, down 27% year-over-year.

• Adjusted EBITDA margin improved to 76% from 64% in 1Q25.

• Cash position at quarter-end was $2.16 billion.

Outlook and guidance

• Lifting cost expected to improve further in Q2 with full Wahoo production and Peregrino cost reductions.

• Net debt/EBITDA ratio at 2x, targeting 1x by end of 2027.

• Completion of Peregrino acquisition (remaining 20%) expected by year-end 2026, with full integration to boost production and revenue.

• CapEx for 2026 projected at $550–600 million, normalizing to ~$500 million in 2027.

• Production guidance remains at 200,000bbl/day, with potential upside if declines are managed.