PRIO Achieves Record 231% Profit Growth in Q4 2024 Through Strategic Tax Credits

Brazilian oil giant PRIO (PRIO3) reported Thursday that its fourth-quarter 2024 net profit soared to $1.1 billion. This remarkable 231% year-over-year increase stems from tax credits related to fiscal losses at Prio Forte S.A.

The company strategically transferred assets from Frade, Albacora Leste, and Wahoo fields to Prio Forte S.A. This move enabled PRIO to fully recognize substantial tax credits, dramatically boosting its financial results.

Despite the impressive bottom-line growth, PRIO’s EBITDA declined to $301.7 million. This represents a 41% decrease compared to the same period in 2023. These figures exclude adjustments under the IFRS-16 accounting standard.

PRIO strengthened its portfolio significantly in late 2024 by acquiring a 40% stake in the Peregrino field from Sinochem. The $1.92 billion acquisition immediately boosted production by approximately 35,000 barrels per day.

Production reached 106,300 barrels of oil equivalent daily in December 2024. This marked a 38% increase from November, with the newly acquired Peregrino stake contributing 37,100 barrels daily to total output.

According to DeGolyer and MacNaughton’s certification, Peregrino holds economically recoverable reserves of about 338 million barrels. PRIO expects its 135 million barrel share from this field to produce beyond 2037.

PRIO’s Performance and Strategic Moves

The company now operates in partnership with Equinor, which maintains a 60% stake and continues as field operator. PRIO anticipates logistics optimization by combining Peregrino shipments with oil from its other operations.

PRIO certified total oil reserves of 687.8 million barrels as of January 1, 2025. This comprehensive figure includes reserves from Polvo, TBMT, Frade, Wahoo, and Albacora Leste fields.

The record Q4 performance follows a challenging third quarter. PRIO had previously reported a 52% profit decline in Q3 2024, earning just $165 million as production fell nearly 30% year-over-year.

These contrasting quarters highlight PRIO’s strategic positioning in Brazil’s competitive oil sector. The company continues to leverage tax advantages and strategic acquisitions to strengthen its market position.

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