3R Petroleum Óleo e Gas S.A. (“3R” or “Company”) (B3: RRRP3) hereby presents its results for the fourth quarter (“4Q22”) and year of 2022. Except as indicated otherwise, the financial and operational information herein described is presented on a consolidated basis, in Brazilian Reais (R$), and in accordance with International Financial Reporting Standards (IFRS).
HIGHLIGHTS AND POST REPORTING DATE EVENTS
Business Plan: Organic Development, Minimization of Risks and Sustainability
• Operational safety: intensification of activities for integrity and maintenance of installations
• Consolidation of portfolio: 7 of 9 assets integrated and remaining transitions near conclusion
• Incorporation of Papa Terra Cluster: Company’s second offshore operation
• Sustainability report: first edition already in preparation phase
• Organizational simplification: optimization of corporate structure and integration of activities
Operational Evolution in a Robust and Diversified Portfolio
• Pro forma portfolio1 posted 45.2k boe/d in Dec/22, with 43.8% incorporated into portfolio
• Average production of 15.4k boe/d in 4Q22, +107.6% Y/Y
• Consistent operational execution in Bahia, +469.1% Y/Y and +3.6% Q/Q boe/d
• Start of onshore drilling campaign in March 2023, in Rio Grande do Norte (RN)
• Detailing asset’s development plans and maintenance of production capacity after expansion of production systems
• Operational interventions at the Macau Cluster, recovering the integrity of the drainage system and adjusting the separation plants
• Addition of reserves and production based on increased working interest in subsidiary 3R Offshore
• Updating of reserve certifications already underway, with new reports to be disclosed by 2Q23
Consistent Financial Results and Balanced Capital Structure
• Funding for Potiguar Cluster concluded, even in a challenging scenario in the credit market
• Record Net Revenues in 2022, R$ 1,722.4 million, growth of 136.7% Y/Y
• Significant improvement in gas monetization, +187.9% Y/Y
• Adjusted EBITDA worked out to R$ 709.6 million in the year, rise of 99.3% Y/Y
• Adjusted EBITDA Margin of 41.2% in 2022, even considering the transition expenses and the time of portfolio consolidation
• Net Income of R$ 127.7 million, 8 times higher over previous year
• Capex of US$ 69.4 million in 2022, mainly allocated to workover activities, wells reactivations and facilities
• Lifting Cost of US$ 14.1/boe for the year, competitive level since 3R began operations
• Cash Generation from Papa Terra Cluster2: offset of US$ 9.6 million upon closing and balance of US$ 9.6 million to be deducted from contingent installments
1 Includes 3R’s working interest in assets that are already in the operational transition phase (65% of Pescada Cluster and 100% of Potiguar Cluster)
2 Cash generation related to the operational transition period of Papa Terra Cluster (July 2021 to December 2022) belongs to 3R Offshore
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