PRIO recorded a 13% drop in crude production in April, averaging 91.1 thousand barrels per day. The company attributed this drop to a planned shutdown at its Frade field.
Brazil’s offshore sector faces environmental scrutiny and regulatory delays that stall field upgrades. Operators must secure IBAMA approvals for well interventions and new developments. These conditions test PRIO’s ability to maintain smooth operations.
Frade output plunged to 13.5 thousand barrels per day, down from 37.2 thousand in March. Meanwhile, Albacora Leste held steady at 27.2 thousand, Peregrino at 29.3 thousand, and Polvo plus TBMT at 11.1 thousand.
PRIO sold 3.1 million barrels in April, led by Peregrino with 1.4 million barrels. Frade contributed 1.2 million barrels, and the Polvo plus TBMT cluster added 407 thousand barrels. Albacora Leste sales data remained undisclosed.
The company posted net revenue of US$696.9 million in Q1, a 15% increase year on year. Adjusted EBITDA fell 4% to US$459.3 million, trimming the margin from 79% to 66%. Net income climbed 62% to US$352.9 million, boosted by full Peregrino integration.
PRIO completed its US$3.5 billion purchase of Equinor’s 40% stake in Peregrino in late 2024. This deal gave PRIO full control of Peregrino and boosted first-quarter production volumes. It also deepened PRIO’s exposure to mature but cash-generative offshore assets.
PRIO Faces Development Challenges
PRIO published a reserves certification that showed a 43 million barrel uplift in Wahoo’s reserves. It adjusted Frade’s 1P reserves lower due to underperformance and added one infill well in N570.
Wahoo’s CAPEX rose to US$850 million from US$830 million, reflecting environmental licensing delays. Albacora Leste’s revitalization plan shifted later after licensing setbacks postponed workovers and compressor replacements.
In the Polvo and TBMT cluster, PRIO plans one new producer well in Polvo and two workovers in TBMT. These measures cut CAPEX per added barrel, easing future development costs.
Equipment failures at two TBMT wells forced additional downtime amid slow IBAMA approvals for repairs. Regulators still must clear Wahoo’s environmental permit before late 2025 startup.
PRIO secured R$2 billion (US$333 million) in fresh capital to revive aging assets and fund offshore exploration. Goldman Sachs cited cash flow risks but flagged potential upside for PRIO shares at R$60.30.
The company will need to navigate licensing hurdles while restoring output to maintain investor confidence. Analysts noted the missing Albacora Leste sales as a transparency concern. They also said PRIO’s capital discipline will prove vital amid costly licensing delays.
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