Prio (PRIO3) Q2 2026 earnings summary

Executive summary

• Achieved record average production of 172,000 bpd and sales of 15.3 million barrels in 2Q26, driven by Wahoo development completion and Peregrino well start-ups, with adjusted EBITDA of $879 million and lifting cost reduced to $8.9/bbl.

• Revenue reached $1.4 billion, up 184% year-over-year, with net income (ex-IFRS 16) of $413 million, up 169%, and cash position at $713 million after significant share buybacks.

• Major field acquisitions and development, including Peregrino and Wahoo, contributed to asset and production growth.

• Published the fourth Annual Sustainability Report, received Gold Seal for GHG inventory, and maintained a B score from CDP, reinforcing ESG commitments.

• Guidance for production, leverage, and capital allocation remains unchanged, with expectations to exceed 200,000 bpd by year-end.

Financial highlights

• Total revenue for 2Q26 was $1.44 billion, a 184% increase year-over-year; adjusted EBITDA (ex-IFRS 16) reached $879 million, up 218%, with a margin of 72%.

• Net income (ex-IFRS 16) was $413 million, a 169% increase from 2Q25; net revenue for H1 2026 was $2.63 billion.

• Lifting cost per barrel dropped to $8.9, down 36% year-over-year.

• Net debt/EBITDA at 1.5x at quarter-end, with net debt at $1.44 billion and cash position at $713 million.

• Export taxes totaled $111 million in Q2, impacting results.

Outlook and guidance

• Production expected to exceed 200,000 bpd by year-end, with further increases as Peregrino's 20% stake is consolidated.

• Lifting costs projected to fall to $7–$8/bbl in Q3 due to higher production and gas conversion at Peregrino.

• Net debt/EBITDA ratio targeted at 1.0x by end of next year, or 0.8x if oil prices remain high.

• Continued focus on operational efficiency, cost rationalization, and maximizing output from new and acquired fields.

• Share buyback program to continue, aiming for 10% ownership and further cancellations.