By Brazil Stock Guide – PRIO S.A. (B3: PRIO3) approved a R$2 billion ($350 million) increase in its capital stock through the capitalization of retained earnings, reinforcing the company’s equity structure without issuing new shares or raising fresh funds. Following the move, PRIO’s capital base will rise to R$15.7 billion.
The operation, approved by the board, reallocates resources from PRIO’s statutory investment reserve — a mechanism designed to support strategic acquisitions and field development projects such as Wahoo, Frade and Polvo — into the company’s paid-in capital. The transaction complies with CVM Resolution 44 and Article 40 of PRIO’s bylaws.
PRIO stressed that the measure is purely accounting in nature, representing an internal transfer of funds already booked in shareholders’ equity, without economic or financial effects. No new shares will be distributed, and the number of outstanding shares remains unchanged.
The capitalization follows a period of solid cash generation and expanding production, reflecting PRIO’s strategy to optimize its capital structure while preparing for future investment cycles in mature field revitalization and asset acquisitions in Brazil’s offshore basins.
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