Brazil’s largest independent oil and gas company, PRIO, is making waves in the energy sector. On December 27, 2024, the company’s board of directors approved a substantial R$ 3 billion ($0.48 billion) increase in share capital.
This raised the share capital from R$ 7.834 billion ($1.26 billion) to R$ 10.834 billion ($1.75 billion). This strategic decision aims to strengthen PRIO’s financial position and support its ambitious growth plans.
The capital boost will fund the redevelopment of existing production assets, finance drilling activities, and enable the pursuit of future growth opportunities.
PRIO’s financial outlook for 2025 projects impressive figures:
- Net sales: R$ 17.702 billion ($ 2.86 billion)
- EBITDA: R$ 12.982 billion ($ 2.09 billion)
- Net income: R$ 5.818 billion ($ 1.16 billion)
The company’s recent expansion efforts have yielded significant results. PRIO acquired a 40% stake in the Peregrino field, which is expected to increase production by 36,000 barrels per day.
Additionally, the company secured full rights to the Wahoo Field through a favorable arbitration decision. PRIO’s average production reached 70,300 barrels per day in Q3 2024.
The company recorded a net revenue of US$ 498 million and an adjusted EBITDA of US$ 328 million during the same period. These figures demonstrate the company’s solid operational performance and financial health.
The capital increase will not involve issuing new shares or altering the company’s shareholding structure. Instead, PRIO will capitalize on resources allocated in its statutory profit reserve, maintaining the current number of 892,059,934 ordinary shares.
This move positions PRIO to capitalize on opportunities in Brazil’s oil and gas sector, focusing on efficient production, cost optimization, and strategic acquisitions.
As the company continues to strengthen its position in Brazil’s energy landscape, investors and industry observers will be watching closely to see how this capital boost translates into long-term growth and value creation.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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