Prio (PRIO3) Q2 2025 earnings summary

Executive summary

• Achieved record production of 123.2 kbpd in June–July, the highest in company history, despite operational disruptions at Frade and scheduled shutdowns.

• Q2 2025 revenue was $508 million, EBITDA $276 million, and net income $154 million, with results impacted by lower Brent prices, Peregrino's higher costs, and operational issues.

• Acquired 60% of Peregrino field, with closing expected by July 2026, and advanced Wahoo project licensing and drilling.

• Published third annual ESG/sustainability report and launched Instituto PRIO to reinforce biodiversity and environmental education commitments.

• Operational efficiency at Albacora Leste improved to 88.4%–97% after equipment upgrades.

Financial highlights

• Q2 2025 revenue was $508 million, adjusted EBITDA $276 million, and net income $154 million, all down sharply year-over-year due to Brent price drop and lower sales.

• Sales volume was 8 million bbl, below production of 9 million bbl, leading to higher inventory.

• Lifting cost rose to $13.8/bbl, mainly due to Peregrino's higher cost structure and lower Frade output.

• CapEx for the quarter was $156 million, driven by Wahoo drilling, Peregrino, and TBMT workovers.

• Depreciation and amortization increased 81% year-over-year, reflecting Peregrino acquisition.

Outlook and guidance

• Peregrino acquisition expected to close by July 2026, with leverage projected to remain controlled due to anticipated cash generation.

• Wahoo field development progressing as planned, with first oil targeted for March 2026, pending installation license.

• Focus on maintaining high operational efficiency at Albacora Leste and reducing lifting costs.

• CapEx expected to normalize post-pent-up workovers, with Peregrino contributing to a structurally higher but manageable CapEx.

• Continued pursuit of M&A opportunities, though large-scale deals in Brazil remain limited.