Prio (PRIO3) Q3 2025 earnings summary

Executive summary

• Achieved record operational efficiency at Albacora Leste (91.1% in 3Q25) and resumed Peregrino production in October after a 63-day shutdown, with output exceeding 100,000 bbl/day post-restart.

• Wahoo field advanced with installation licenses, two wells drilled, subsea tieback operations underway, and first oil targeted for March–April 2026.

• Issued US$700 million in bonds, repurchased US$431 million of 2026 Senior Notes, and closed a local debenture, strengthening liquidity and extending debt maturities.

• Maintained focus on safety, ESG initiatives, and employee well-being, with expanded social programs.

• KPMG reviewed interim financials, confirming compliance with CPC 21 (R1) and IAS 34.

Financial highlights

• Total revenue reached US$607 million in Q3 2025, up 22% year-over-year, with 8.8 MMb sold.

• Adjusted EBITDA (ex-IFRS 16) was US$320 million, down 2% year-over-year; margin declined to 57%.

• Net income (ex-IFRS 16) was US$92 million, a 44% decrease year-over-year, impacted by higher costs and financial expenses.

• Lifting cost rose to US$17.4/bbl, up 77% year-over-year, mainly due to Peregrino's downtime.

• Cash position at quarter-end was US$1.7 billion, now over US$2 billion.

Outlook and guidance

• Peregrino operator transfer anticipated by February 2026, with regulatory approvals in place and production expected to exceed 150,000 bbl/day.

• First oil from Wahoo targeted for March–April 2026, forming a new production cluster.

• Production projected to rise from 115,000 bbl/day to over 200,000 bbl/day within 6–8 months as Peregrino and Wahoo ramp up.

• M&A activity will take a backseat as operational focus intensifies.

• Capital increase and bond issuance in Q4 2025 to support Peregrino acquisition and future growth.