Prio (PRIO3) Q1 2025 earnings summary

Executive summary

• Acquired 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 average daily production of 109.3 thousand barrels, with 10.2 million barrels sold in Q1, a 34% year-over-year increase.

• Initiated drilling in Wahoo Field and received approval for workovers at TBMT, with two key wells expected back online by late June.

• Lifting cost increased to $12.8 per barrel, mainly due to Peregrino's higher cost and lower-than-expected production.

• Issued $206 million in local debentures to support capital structure.

Financial highlights

• Total revenue reached $727 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 rose to $12.8 per barrel, a 71% increase year-over-year, mainly due to Peregrino.

• CapEx totaled $130 million, with $43 million in share buybacks and $45 million in financial expenses.

• Cost of goods sold doubled to $129 million, mainly due to Peregrino consolidation.

Outlook and guidance

• Lifting cost expected to decrease to $12 per barrel as production normalizes and TBMT wells return.

• With Peregrino and Wahoo fully integrated, consolidated lifting cost is projected to drop to $8 per barrel.

• Expects natural deleveraging after Peregrino payment, even under lower Brent scenarios.

• Anticipates Wahoo field full production capacity in 2025, pending installation license.

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