Petro Rio S.A. (“Company” or “PetroRio”) (B3: PRIO3) announces its 1Q22 earnings.
HIGHLIGHTS FOR THE PERIOD
Message from the Management
“2022 started with several developments that affected Brent prices, including the decrease in severity of COVID-19, an excellent reason to celebrate; and the regrettable war in Ukraine. We have seen oil prices rise sharply, with Brent approaching its 10-year peak. Therefore, along with the strategy of continuously controlling costs, and the maintenance of high operational efficiency, we managed to reach several records, among them per barrel revenue, contribution margin and EBITDA.
On the operational front, the first quarter was marked by operational stability both in the Frade / Wahoo cluster and in the Polvo / Tubarão Martelo cluster. Furthermore, we completed the FPSO Bravo gas compressor project, allowing full use of the gas produced in the Polvo / Tubarão Martelo cluster for power generation, substantially reducing the platform’s diesel consumption. Thus, we took another step in reducing the Company’s emissions, along with reducing costs, which allowed us to achieve the lowest lifting cost ever recorded.
In April, we started the Frade Revitalization Campaign, after several iterations with IBAMA to obtain the Operating License, in addition to the work to prepare the NORBE VI drilling rig. This project, which is extremely important for PRIO, has been carried out with the highest standards of efficiency, safety and respect for the environment, and should begin to yield very positive results within a few months.
The quarter also included a large part of negotiations related to the acquisition of the Albacora Leste Field, whose contract was signed on April 28. We are very excited about the possibilities that the Field brings to PRIO, almost doubling the Company’s production upon closing of the operation, more than doubling 1P reserves, and further consolidating a path of strong organic growth for the coming years. Regarding funding for the acquisition, the company is fully prepared, with the funds in its account added to its cash generation.
We are proud of the social and environmental initiatives that took place in the quarter, such as: (i) the conclusion of the Bravo FPSO gas compressor adequations, converting the produced gas of the cluster in energy for operation, thus significantly reducing the cluster’s carbon emissions and (ii) the sponsorship of the Reação Offshore project, which consists of technical and non-technical courses by the Reação and Todos na Luta Institutes, in order to empower people interested in working in the offshore field.
Finally we would like to highlight that we have successfully migrated our ERP system to SAP and from now on we will have both our accounting and financial statements using the US Dollar as our functional currency, which is more consistent with the nature of our business.
We would like to thank our employees for their efforts to enable such results, delivered in a safe and efficient manner. We also express our gratitude to our shareholders and other stakeholders for the trust placed in us so that we can move foward.”
Click here for the Earnings Release.