By Brazil Stock Guide – PRIO S.A. (B3: PRIO3), Brazil’s second largest independent oil and gas producer, after Brava Energia, reported a net profit of $92 million for the third quarter of 2025, down 44% from a year earlier, as temporary halts at the Peregrino field weighed on output. Revenue reached $607 million, up 22% year-on-year, driven by higher sales volumes and new asset integration, despite a 13% drop in Brent prices. Adjusted EBITDA stood at $320 million, 2% below 3Q24.
Operational Highlights
Production averaged 88,200 barrels per day, down 12% from the previous quarter due to the shutdown and ANP-mandated stoppage at Peregrino in July and August. The field resumed operations on October 17, and output has now surpassed 100,000 barrels per day. Once PRIO finalizes the operator transfer — expected by February 2026 — total production should exceed 150,000 barrels per day, enabling cost synergies and lower lifting costs.
In Albacora Leste, operational efficiency hit a record 91.1%, supported by continuous system improvements. Frade posted a 43% quarterly rise in production, and the Polvo & Tubarão Martelo cluster recovered to 13,900 barrels per day after completing key well workovers. Meanwhile, the Wahoo project advanced with the installation license granted and subsea construction underway. First oil is expected between March and April 2026.
Financial Performance
Operating costs increased with the addition of Peregrino and maintenance expenses, lifting cost averaging $17.4 per barrel. Financial results were negatively impacted by higher debt and hedge costs, totaling -$109 million. Still, PRIO reinforced its liquidity with $700 million in new bonds issued in October, complementing a $539 million debenture issuance earlier in the year. The company’s average debt cost stands at 6.35%, with a 2.78-year duration.
Outlook
Management emphasized that Peregrino’s restart and Wahoo’s development mark “a new phase of efficiency and growth.” Once both fields are fully integrated, PRIO expects to consolidate its position as Brazil’s top independent offshore producer, targeting leaner costs and a stronger cash profile.
Leave a Reply