Feb 20, 2020
PetroRio, the largest independent oil and gas company in the country, recorded record financial results in 2019, a year marked by important acquisitions, with a strong positive impact on the company’s production and reserves. For the year, net income reached R$ 688.4 million, an increase of 236% compared to 2018.
Net revenue, in turn, reached R $ 1.644 billion in 2019, a 94% growth compared to 2018 and adjusted EBITDA reaches R $ 792 million, after the acquisition of Campo de Frade and capture of synergies with the Polvo Field , operated by PetroRio. The company, whose strategy is to acquire and invest in fields already in production, has as pillars the rationalization of costs, high efficiency, focus on increasing production and capital discipline and – always with operational safety, respect for the environment.
“In 2019, we presented significant increases in our production and significant reductions in costs per barrel, benefiting the results of the year. We had another year of overcoming and deliveries, despite the drop of eight dollars in the average Brent of the period.”, Highlighted Nelson Queiroz Tanure (photo), CEO of PetroRio.
“2019 was highlighted on the M&A agenda. We carried out four transactions throughout the year, which we believe will generate value for the Company, allowing us to carry out even more transactions going forward. Our continuous efforts to rationalize costs and capture synergies in the new assets reduced the Company’s cost per barrel to US $ 20 / barrel in the last quarter, which implies a new cash generation capacity, even in scenarios of high volatility of Brent oil. PetroRio believes that the reduction in cost per barrel barrel is its best hedge strategy and will continue to have the indicator as a pillar in its projects “, added the main executive of the company.
In view of new acquisitions, efficiency gains and investments in the revitalization of fields, PetroRio’s average oil and gas production jumped from 11,673 thousand barrels / day in 2018 to 19,209 thousand barrels / day in 2019, an increase of 65%.
2019 was marked by strategic acquisitions, which continue this year. In November 2019, PetroRio signed a purchase agreement for 30% of Campo de Frade with Petrobras, which now holds 100% of the asset. Upon completion of the operation, the participation will add approximately 5.8 thousand barrels per day to PetroRio’s total production, further reducing the cost of oil extraction. PetroRio plans to start in 2020 the Campo de Frade Revitalization Plan, which seeks to increase the asset recovery factor and meet the conditions of the ANP for the extension of the concession until 2041.
In February 2020, the Company signed contracts for the purchase of the vessel OSX3 (an FPSO), for US $ 140 million, and for 80% (“farm-in”) of the Tubarão Martelo Field, where OSX-3 is located chartered. These operations will allow the interconnection between the Polvo and Tubarão Martelo fields, simplifying the production system and creating a private hub in the region, which will generate significant synergies, cost reductions and the extension of the economic life of the fields.
PetroRio has implemented, since the completion of the acquisition of the operation and 52% of Frade (in March 2019), cost reduction measures due to operational and logistical synergies with the Polvo Field. In October 2019, PetroRio announced the completion of the acquisition of 18% of Frade, which added about 3,500 barrels to the Company’s daily production.
Operational efficiency, another differential of PetroRio, reached 99.7% in Frande in the last quarter of 2019.
With the intention of sharing its results with society, PetroRio helps to finance Instituto Reação, an NGO created in 2003 by the Olympic medalist Flávio Canto and his coach Geraldo Bernardes, which encourages the practice of judo. At the end of 2018, the company played a leading role in the launch of the PetroRio das Artes Theater, with the aim of financing socio-cultural activities in the theater for the next two years. In the field of inclusive music, PetroRio launched the sponsorship of the NEOJIBA Orchestra, which promotes the development and integration of young people in Bahia through the collective practice of music.
“After a year of important deliveries, we believe that PetroRio is well positioned to continue its trajectory of economic and social growth. We will continue to study potential acquisitions and seek attractive returns by rationalizing the costs of assets already acquired and looking for creative ways to contribute for a more inclusive society “, emphasizes the CEO of PetroRio.
PetroRio press release