Petroreconcavo (RECV3) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2025 was R$786 million, down 2% sequentially; year-to-date net revenue reached R$2.5 billion, up 1% YoY.

• EBITDA for Q3 was R$350 million, a 6% decrease from Q2, with a margin of 44.5%; YTD EBITDA was R$1.1 billion, down 7% YoY.

• Net profit for Q3 was R$122 million, a 49% drop from Q2; YTD net profit was R$588 million, up 45% YoY.

• Average production for Q3 was 26,400 boe/day, down 3% sequentially, but YTD average was up 2–3% YoY.

• Major operational advances included water injection in the Chié/Tiê field, the first horizontal well, and the acquisition of 50% of midstream assets in Rio Grande do Norte.

Financial highlights

• Adjusted net income for Q3 was R$69 million, down 50% sequentially; free cash flow (excluding midstream acquisition) was R$38 million.

• Net debt at period end was R$1.5 billion, with leverage at 1.00x EBITDA (LTM).

• CapEx for Q3 was R$569 million, mainly for reserves development and midstream asset acquisition.

• EBITDA margin was 44.5% in Q3 2025.

• Lifting cost increased to US$15.52/boe, up 12% sequentially.

Outlook and guidance

• CapEx for reserve development is expected to decrease by ~15% in Q4, with a more conservative investment approach in 2026.

• Water injection in Chié/Tiê is expected to stabilize and potentially increase production.

• Enhanced hedging strategy: 35% of oil and 89% of natural gas production hedged for 2026.

• Operational flexibility and capital allocation are being adjusted in response to macroeconomic and Brent price trends.