Prio (PRIO3) Q4 2025 earnings summary

Executive summary

• Achieved record average production of 106.4 thousand barrels per day and record sales of 37.8 million barrels in 2025, driven by Peregrino acquisition and Wahoo development.

• Completed Peregrino acquisition (additional 40% and operatorship), boosting production and reserves, and resumed operations after regulatory interdiction.

• Advanced Wahoo field development and environmental licensing, with first oil imminent and commissioning nearly complete.

• Maintained operational efficiency at Albacora Leste and improved performance at Polvo and TBMT clusters.

• Reinforced safety culture, expanded social and environmental initiatives, and formalized plans for shareholder remuneration policy.

Financial highlights

• Total revenue reached US$2.5 billion in 2025, up 3% year-over-year, despite a 15% drop in average Brent price.

• Adjusted EBITDA (ex-IFRS 16) was US$1.4 billion, with a 58% margin; Q4 adjusted EBITDA was $341 million.

• Net income (ex-IFRS 16) was US$405 million, a 77% decrease year-over-year, mainly due to non-recurring 2024 tax credits and higher D&A.

• Q4 accounting loss of $185 million due to high depreciation and deferred tax impacts.

• Issued US$700 million in bonds and repurchased US$431 million of 2026 notes, optimizing capital structure.

Outlook and guidance

• Wahoo field commissioning nearly complete; first oil expected imminently, with full production in May and additional wells online by end of April.

• Lifting cost expected to drop to single digits in 2026 as Wahoo ramps up and Peregrino cost optimizations continue.

• Focus on organic growth, cost reduction, operational efficiency, and disciplined capital allocation in 2026.

• Shareholder remuneration policy to be formalized and disclosed in 1H26, targeting net debt/EBITDA of 1x before distributing surplus cash.

• Plans to close the remaining 20% of the Peregrino interest and pursue further M&A opportunities.