3R Petroleum Óleo e Gás S.A. (“3R”) is pleased to invite you to the first quarter of 2022 earnings conference, which will take place tomorrow, May 4, 2022, at 2:00 pm (BRT). 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
Organic development of the robust portfolio
With the signing of Potiguar Cluster, 3R consolidates itself as one of the main independent O&G producers in Latin America;
• 91% of the oil produced by the portfolio1 with access to the international market through its own infrastructure (storage and terminal for private use for export/offloading systems): Guamaré Industrial Asset guarantees flexibility for the sale of gas, oil and refined products produced in the Macau, Areia Branca, Pescada and Potiguar Clusters;
• 493.5 million boe in certified 2P reserves (166 million PDP), with 90% being oil reserves and 10% gas;
• Portfolio with average daily production of 49.6 thousand boe in the past 12 months, with 42.1 thousand boe relating to 3R’s working interest, including the assets in transition;
• Average production of 9.2 thousand boe/d of the integrate portfolio² in 1Q22, +21.2 Q/Q and +67.9% Y/Y;
• Increase of 68.3% Y/Y in the oil production of Company operated assets² and +18.5% Q/Q;
• Consistent Increase of oil production from the Macau and Rio Ventura clusters;
• Consolidated lifting cost of US$ 9.2/boe in 1Q22, -4.1% Q/Q, benchmark on Brazilian O&G industry;
• Enhanced efficiency at the Macau Cluster, with lifting cost of US$ 6.4/boe, a cut of 11.7% Q/Q;
• Beginning of the effective period of new gas agreements for the Macau Cluster and 65% of the Pescada Cluster, representing improved monetization of production.
Solid financial results in 1Q22
• Net revenues amounted to R$ 375.3 million, rise of 50.1% Q/Q and 182.6% Y/Y;
• Oil net revenues represented 92.5% of the total, benefited by a combination of increased production of oil and the Brent price appreciation;
• Adjusted EBITDA amounted to R$ 198.5 million, an increase of 140.3% Q/Q and 150.3% Y/Y;
• Adjusted EBITDA margin closed out the quarter at 52.9%, a healthy operating level, +19.8 p.p Q/Q, even considering expenses related to assets in transition;
• Capex of US$ 13.0 million: oil-water separation plants at the Macau Cluster, workover activities (well intervention) and production, control and automation infrastructure at the assets under 3R management;
• Diversified shareholder base, increased representativeness of foreign investors;
• RRRP3, +24.7% Q/Q, average daily liquidity of R$ 182.8 million or US$ 35.0 million in the quarter.
Investment proposal backed by ESG guidelines
• Election of Mr. Roberto Castello Branco and Mr. Harley Scardoelli to the Board of Directors;
• Installation of the Fiscal Council and the Compliance Committee, bolstering the governance structure;
• GPTW (Great Place to Work): Company certified as being an excellent place to work at;
• Job safety as a non-negotiable corporate value: entire quarter featuring not a single leave of absence resulting from an accident;
• Participation in humanitarian aid initiatives and social actions in the states of Bahia and Rio de Janeiro (Petrópolis);
• Gas-to-wire in final commissioning phase at Macau Cluster: lower electric power demand from the grid and decreased of gas emissions in the atmosphere.
¹ Percentage of oil produced at the Macau, Areia Branca, Pescada and Papa Terra Clusters in relation to the total oil production of the assets that make up the Company’s portfolio, in the range between April/21 to March/22;
² Macau, Areia Branca and Rio Ventura clusters and 35% of the Pescada Cluster, with the latter being operated by Petrobras.