3R Petroleum 2Q23 Results

3R Petroleum Óleo e Gas S.A. (“3R” or “Company”) (B3: RRRP3) hereby reports its results for the second quarter of 2023 (“2Q23”). Except as indicated otherwise, the financial and operational information set out below is presented on a consolidated basis and expressed in Brazilian Reais (R$), in accordance with accounting practices adopted in Brazil (CPC) and international financial reporting standards (IFRS).

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Business Plan defined: integration of operations and execution

• Consolidated portfolio, closing of Polo Potiguar marks an important step for the Company
Efforts concentrated on safety, reliability, and operational execution
• Company focused on upstream segment,
with integrated portfolio that aggregates opportunity for diversification and generation of additional value in the mid & downstream segment
• Acceleration of investment
and enhanced reliability of operational installations and systems has already led to increased production
• Commercial contracts under more competitive conditions for the Company in all asset clusters
• Establishment of the Sustainability Committee in 2Q23
and launch of the first Sustainability Report set for 3Q23Important gain of scale and increase in operational efficiency

• Operational resilience: increased production posted at all clusters of assets in second quarter
• Average daily production was 28.3 thousand boe in 2Q23
, +37% Q/Q
• Share of oil output accounted for 70% of production in 2Q23,
still with partial effect of the incorporation of Polo Potiguar, major oil asset
• Remarkable operational pick-up at Macau Cluster
, as from release of production infrastructure and less operational volatility. This asset posted a rise of +18.3% in production Q/Q, and +65% in oil production in July when compared with January 2023
• 3R began 3Q23 with production of 43.9 thousand boe/d in July,
+ 16.3% M/M
• Activities involving integrity and adaptation of our production installations
expanded reliability of systems and enhanced operational efficiency at all Company assets in 2Q23
• Mobilization of new drills
aided in acceleration of interventions: reactivation of wells, workover, pulling, and drillings
• Onshore drilling campaign full steam ahead
, with results of first wells at Macau in line with Company planning
• 3R began operation in the mid & downstream segment
in an independent manner and without any operational discontinuity

Yet another quarter with solid financial results

• Record net revenues, R$ 836.6 million posted in the second quarter, +45.8% Q/Q.
• Renegotiation of oil agreements in Bahia and at Papa Terra
guarantee better commercial terms
• Adjusted EBITDA accounted for R$ 199.5 million in the quarter,
up 28.2% Q/Q, supported by the upstream segment and with positive contribution from the mid & downstream segment, even with just 23 days of operation
• Adjusted EBITDA Margin of our upstream was 34.9% this past quarter
, even considering the transition expenses and the drop of the average Brent price, down 3.8% for the quarter
• Net earnings of R$ 79.4 million in the quarter
, +4.9x Q/Q
• Acceleration of Capex supported development of production, US$ 42.2 million in 2Q23,
+29.2% Q/Q
• Lifting Cost held steady at a controlled level, US$ 23.5/boe in 2Q23
, +5.0% Q/Q, even considering temporary costs at the Potiguar Cluster and unprogrammed stoppage at the Papa Terra Cluster

To access the documents of this quarter, click here.

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