3R Petroleum Óleo e Gás S.A. (“3R”) is pleased to invite you to the fourth quarter and full year 2021 earnings conference, which will take place today, February 23, 2022, at 2:00 pm. To access the webcast, click here.
To access all the material, including the Earnings Release and the Presentation that will be used during the conference, click here.
Highlights and Subsequent Events
• Consolidated production of the assets acquired makes 3R one of the largest independent oil and gas (O&G) producer in America Latina;
• Portfolio features average daily production of 55.2 thousand barrels of oil equivalent (boe) in 2021, with fully 45.1 thousand boe relating to 3R’s portion, including all the assets in transition;
• Consolidated Lifting Cost of US$ 8.1/boe in 2021, a benchmark figure on the industry in Brazilian O&G players;
• Fourth consecutive quarter with increased oil production at Macau Cluster, +32.6% Y/Y, + 3.7% Q/Q;
• Macau Lifting Cost wound up 2021 at US$ 6.6/boe, the most efficient asset in the 3R portfolio;
• Rio Ventura Cluster: Increase of 22.5% Q/Q and reduction of 7.1% Q/Q in terms of lifting cost;
• Closing of acquisition of Areia Branca Cluster: operations started up in November 2021;
• Closing of acquisition of supplementary portion in the Sanhaçu field: production of gas that is fundamental for the Company’s plans of revitalization in the Potiguar Basin;
• Renegotiation of gas agreements for the Macau and Pescada clusters: upside of as much as 5X when compared to the amount realized up to 4Q21;
• Acquisition of entire working interest in the Potiguar Cluster:
o Access to international markets and capacity to export all the production of oil of the assets of the Potiguar Basin, including those operated by other players;
o Cash generation belongs 3R as from July 1, 2022 for the production of oil and gas;
o Enhances production scales and capacity for replenishing and increasing reserves.
2021 was noteworthy for the considerable evolution of the Company’s financial results
• Cumulative revenues for 2021 were R$ 727.8 million, 3.6 times the recorded for the year 2020;
• Net Revenues reached R$ 250.0 million in 4Q21, a rise of 193.3% Y/Y and 30.1% Q/Q;
• Macau’s Net Revenues hit the mark of R$ 197.1 million in 4Q21, + 159.7% Y/Y, + 21.2% Q/Q;
• Rio Ventura’s Net Revenues reached R$ 31.2 million in 4Q21, + 54.3% Q/Q;
• In 2021, Adjusted EBITDA hit R$ 356.1 million, 6.7 times greater than in 2020;
• Consolidated Adjusted EBITDA amounted to R$ 82.6 million in 4Q21, + 63.6% Y/Y, including (i) expenses and costs related to assets in a transition period with Petrobras and (ii) bonuses for employees and the Company’s management for the year 2021, which was fully allocated in the quarter;
• Adjusted EBITDA Margin of 48.9% in 2021, expressive evolution versus 26.1% recorded in 2020;
• US$ 11.3 million Capex in 4Q21: intensification of workovers activities and investments in production infrastructure;
• Funding of ~R$ 2.9 billion obtained in two follow-ons well executed, carried out in the months of March and November de 2021, both with excess demand in book in relation to the base offer;
• Strengthening of share liquidity and inclusion of its share in the leading Brazilian stock market indices: IBrX 100 and Ibovespa.
Brazil Energy Insight 
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