PetroRio posts revenue of R $ 139 mm for 1Q 2019

For the first quarter of 2019, PetroRio posted net revenue of R $ 139.4 million, an increase of 19% compared to the R $ 117.2 million achieved in the same period of 2018.

As the main operational highlight in the quarter, the production of the Polvo field increased by 55% in this comparison basis, as a result of the drilling campaign carried out last year. The lifting cost of Polvo also showed a drop due to the higher production in the field.

EBITDA, in turn, was driven by strong operating results and a reduction in general and administrative expenses in the period. PetroRio reached R $ 54.9 million in adjusted EBITDA in the first quarter of this year – R $ 35.3 million, without considering the effects of IFRS 16, which represents a 200% increase in the line item and a 25.3% margin in the quarter.

The positive numbers do not, however, consider the full impact of the purchase of 70% of the Frade field. The acquisition was closed on March 25, 2019 and, as a result, only the last six operating days were included in the first quarter results.

However, Chevron, still an operator, sold almost 1 million barrels in February 2019, referring only to its 51.74% stake in Frade, which resulted in an additional revenue of R $ 212.4 million in the numbers of PetroRio.

“During the first quarter of 2019, we concluded the acquisition of the Company’s most important project since the turnaround began in 2014, reinforcing our position as Brazil’s largest independent oil and gas operator,” said Nelson Queiroz Tanure, CEO of PetroRio.

For Frade, PetroRio seeks to reduce costs through operational ground, air and sea synergies, many of which have already been negotiated. PetroRio also intends to prepare a redevelopment plan for the field, which should include drilling and water injection campaigns.

Source: TN Petroleo

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