Prio (PRIO3) Q2 2024 earnings summary

Executive summary

• Achieved average daily production of 89.8 thousand barrels in Q2 2024, with offtakes totaling 8.5 million barrels and a lifting cost of $7.6 per barrel.

• Adjusted EBITDA reached $546 million, up 64% year-over-year, the second highest in company history.

• Net profit for the quarter was $272 million, with a strong cash position of $1.16–1.2 billion and net debt/EBITDA at 0.4x.

• Q2 2024 was marked by delays in environmental licensing, notably impacting the Wahoo project and production at TBMT and Frade.

• Maintained strong operational and financial performance despite regulatory and operational challenges, with continued focus on safety, sustainability, and social initiatives.

Financial highlights

• Net revenue for Q2 2024 was $727.6–728 million, up 37% year-over-year, with a 19% increase in sales volume and a 9% rise in Brent prices.

• Adjusted EBITDA margin rose to 78–80% in Q2 2024.

• Net profit reached $272 million for Q2 2024, up 48% year-over-year.

• Non-recurring revenue of $40 million from successful legal claims.

• Lifting cost per barrel was $7.6, up 3.4% year-over-year.

Outlook and guidance

• Production is expected to remain under pressure until environmental licenses are granted, especially for Wahoo and TBMT.

• Albacora Leste aims to increase efficiency to 90% and potentially raise production from 27,000 to near 30,000 barrels per day by year-end.

• Drilling of two new wells at Polvo is underway, with expected incremental production of 1,000–1,500 barrels per well.

• Wahoo project execution is ready to proceed once licensing is received, with first oil expected within months after approval.

• Focus remains on operational efficiency, cost control, and readiness for future M&A opportunities.