Prio Faces Production Challenges in March Amid Operational Interruptions
Prio (PRIO3), a leading Brazilian oil producer, reported a 4% drop in consolidated production in March, totaling 104,800 barrels of oil equivalent per day (boe/d).
This marks the second consecutive monthly decline, driven by operational setbacks across key fields. The company attributed the decrease to planned and unforeseen interruptions.
The FPSO at Frade underwent scheduled maintenance, reducing output by 3%. Meanwhile, production at Polvo and Tubarão Martelo fell 2%, as two wells remained inactive pending environmental approval from Ibama.
Albacora Leste experienced an 18% drop due to compressor replacement work. Peregrino remained stable, maintaining production levels similar to February.
Sales figures also reflected the downturn, with 3.18 million barrels sold in March—a 6.4% decline compared to February. Frade’s sales dropped sharply to 378,000 barrels from February’s 1.4 million barrels. Peregrino showed resilience, increasing sales to 1.4 million barrels.
Despite these setbacks, Prio’s first-quarter performance demonstrated growth potential. Average daily production reached 108,000 boe/d, and total sales exceeded 10 million barrels—up 22% year-over-year.
Looking ahead, Prio remains optimistic about recovery and expansion. The company expects production to rebound as inactive wells at Polvo and Tubarão Martelo resume operations and environmental approvals are secured. Additionally, connecting Wahoo’s output to Frade’s FPSO could boost production capacity to 150,000 boe/d.
Prio’s valuation remains attractive at six times projected earnings for 2025. Its low operating costs provide resilience against oil price fluctuations, positioning the company for long-term growth despite short-term challenges.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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