January 06, 2020
Petro Rio S.A. (“Company” or “PetroRio”) (B3: PRIO3) announces to its shareholders and to the market in general that as of this day, it has been included as part of IBXX (or IBrX-100 Index), which consists of the 100 most traded companies in Brazil’s main stock exchange.
The Company had previously been listed as part of six indexes, including the IGCX (Differentiated Corporate Governance Index), IGC-NM (Corporate Governance Index – “Novo Mercado”), ITAG (Differentiated Tag Along index) and SMLL (Small Caps index), and is now listed in a total seven indexes at São Paulo’s stock exchange.
The indexes are designed to evaluate the trading and governance performance of listed companies over time, offering a segmented view of the stock market while measuring behavior of the most significant shares. Presence in the IBrX-100 Index enhances visibility and increases demand for PRIO3 from a greater number of indexed funds.
The Company’s sees this addition as product of its results over the past year and of its efforts to increase relevance, engagement and awareness in the market. PetroRio remains focused on its growth strategy, while seeking to create value for its shareholders.
Update of Hedge Operations:
The Company updates its shareholders of its hedge positions, which are aimed at preserving margins and operational cash flows for the current year, in light of the fluctuations of oil Brent prices – a key price index for the Company’s offtakes and revenue.
The Company took advantage of the recent increases in oil prices and hedged the equivalent to 2.8 million barrels for the first half of 2020. Accordingly, the Company set a minimum price of US$ 65 per barrel for this volume, which comprises 100% of the estimated 1Q20 offtakes and 50% of 2Q20 offtakes.
PetroRio reminds its shareholders that the hedge operations have historically added value to its shareholders and will keep the market updated about upcoming opportunities in the following months.