3R Petroleum 1Q 24 results

3R Petroleum Óleo e Gas S.A. (“3R” or “Company”) (B3: RRRP3) hereby presents its results for the first quarter of 2024 (“1Q24”) . 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).

QUARTER HIGHLIGHTS

Execution in line with investment thesis planning

• Approval of the distribution of R$ 92.6 million in dividends, regarding 2023 fiscal year
• A broad and diversified portfolio with important avenues for growth puts the Company in a prominent position in the consolidation movement in the O&G market
• Liability management, optimization of the capital structure by increasing the debt amortization profile and contracting more competitive instruments in terms of coupon rate
  • Issuance of US$ 500 million in 7-years Notes (Bond): reopening of the international debt market for first-time issuers in Latin America, which had been closed since 2022
• Corporate reorganization of subsidiaries, focus on organizational simplification and greater operational and financial efficiency

Organic performance translated into consistent financial results

• Consolidated net revenue of R$ 2,007.6 million in 1Q24, +3.5x YoY and +8.6% QoQ
• Consolidated Adjusted EBITDA totaled R$ 724.6 million in 1Q24, up 4.7x YoY and 4.0% QoQ and consolidated Adjusted EBITDA margin of 36.1%, +9.0 p.p. YoY and -1.6 p.p. QoQ
• The upstream segment recorded an Adjusted EBITDA margin of 54.1% in 1Q24, while the mid & downstream segment reached 4.3%, excluding the corporate segment and intercompany eliminations
• Improved monetization of production supported by the renegotiation of contracts and diversification of the oil, gas and oil derivatives client base
• Lifting Cost kept under control in 1Q24, US$ 18.6/boe, even with the current interventions in wells at the Papa Terra Cluster
• The onshore portfolio recorded a lifting cost of US$ 16.6/boe in 1Q24, while the offshore assets reached US$ 25.3/boe

Integrity program and well interventions to prepare assets for production improvements

• Average production reached 44.4 thousand boe/d in 1Q24, +2.1x YoY and +29.0% vs 2023 average production
• Upstream portfolio anchored in oil production, 77% of the 1Q24 production, even with interventions in wells at the Papa Terra Cluster
• Integrity program and pump replacements at Papa Terra Cluster prepare assets for higher operational efficiency and production growth in 2H24
• Start of the drilling campaign in the Recôncavo Complex, as of April 2024
• Resumption of operations in the mid & downstream segment after scheduled maintenance, recovery of the integrity and nominal operating capacity of the facilities
• Refinery utilization rate recorded 89.8% in 1Q24, +6.2 p.p. QoQ

ESG Agenda in continuous development

• Development of the Reflorescer Project, more than 2,500 seedlings distributed for forest restoration in Permanent Preservation Areas (APP) and Legal Reserves
• Launch of the First Trainee Program, with the participation of eighteen recently graduated engineers, 40% women, whose focus is on developing skills related to the interventions and drilling of onshore wells
• Human Rights Project, development of a study and benchmark of best practices, as well as internal awareness-raising measures

To access the documents of this quarter, click here.