By Brazil Stock Guide – PRIO SA (PRIO3 BZ), Brazil’s largest independent oil and gas producer, reported record production and sales in 2025 as the company expanded operations following its acquisition of a larger stake in the Peregrino field.
The Rio de Janeiro–based company said average production reached 106,400 barrels per day in 2025, while total oil sales climbed to 37.8 million barrels, both historic highs for the company. Total revenue reached approximately $2.5 billion, reflecting a 3% increase from 2024 despite a 15% decline in the average Brent price during the period.
Operational gains were driven largely by the expansion of PRIO’s presence in the Peregrino field, where the company completed the acquisition of an additional 40% stake and assumed operatorship in November 2025. The transaction added roughly 40,000 barrels per day to the company’s production.
In the fourth quarter, PRIO reported revenue of $642 million, about 20% higher than the same period a year earlier, supported by a 46% increase in production and a 49% rise in sales volumes.
Strong production growth across key assets
The Peregrino field became a major contributor to PRIO’s portfolio after operations resumed in October following a temporary shutdown of the field’s floating production storage and offloading unit by Brazil’s oil regulator ANP.
In the fourth quarter alone, Peregrino produced 56,400 barrels per day attributable to PRIO, marking a sharp increase from the previous quarter as the company consolidated its operating stake.
Other fields also contributed to the company’s operational performance:
- Albacora Leste: average production of 25,200 barrels per day in the quarter
- Frade: average production of 31,600 barrels per day
- Polvo and Tubarão Martelo cluster: 14,800 barrels per day
The company also advanced the development of the Wahoo field, where drilling and subsea installation work continued during the quarter. PRIO said it recently obtained the final operating license and is preparing to start production, initially with two wells.
Earnings pressured by depreciation and currency effects
Despite the strong operational performance, PRIO reported a net loss of $185 million in the fourth quarter, mainly due to higher depreciation and amortization expenses following the Peregrino acquisition and currency effects tied to the appreciation of the Brazilian real.
For the full year, adjusted EBITDA totaled about $1.4 billion, while adjusted net income reached approximately $405 million.
The company also strengthened its balance sheet by issuing $700 million in five-year senior notes at a 6.75% interest rate. Part of the proceeds was used to repurchase a portion of bonds maturing in 2026.
Strategy focused on scale and efficiency
PRIO said its strategy remains centered on acquiring producing assets and improving operational efficiency to increase output while maintaining low production costs.
Management highlighted that operational improvements and strategic acquisitions allowed the company to expand its production scale while maintaining financial discipline and operational efficiency.
With the startup of the Wahoo field and further optimization of the Peregrino asset expected in 2026, PRIO aims to continue expanding production while reducing operating costs.
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