Prio (PRIO3) Q3 2025 earnings summary

Executive summary

• Q3 was marked by a 63-day Peregrino shutdown, impacting production and costs, but other assets like Frade, Albacora Leste, and TBMT performed strongly, with Albacora Leste achieving record 91.1% efficiency.

• Peregrino resumed production in October at over 100,000 bbl/day, and Wahoo field advanced with installation licenses, two wells drilled, and subsea tieback operations underway.

• The company 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, efficiency, and value creation, with expanded social and employee well-being initiatives.

Financial highlights

• Total revenue reached US$607 million, up 22% year-over-year; adjusted EBITDA was US$320 million, and net income was US$92 million, both down year-over-year due to higher costs.

• Adjusted EBITDA margin was 57%, down from 69% in 3Q24.

• 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 is anticipated by February 2026, with production expected to exceed 150,000 bbl/day and cost synergies targeted.

• First oil from Wahoo is targeted for March–April 2026, with subsea construction and drilling progressing on schedule.

• Production is 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.