In June 2024, PRIO (PRIO3) reported an average daily production of 88,200 barrels of oil equivalent (boepd). This figure represents a slight 0.5% decline from May’s numbers.
The Frade field, a significant contributor, produced 46,000 boepd in June. This 1% decrease resulted from the May shutdown of the ODP3 well, pending Ibama’s approval.
Similarly, the Polvo & Tubarão Martelo field saw a 7% drop to 14,000 boepd due to the TBMT-10H well’s production halt, which is under investigation for potential resumption.
The field also felt the impact of the TBMT-8H well’s suspension from May, awaiting Ibama‘s approval.
Despite these challenges, the quarterly performance of some fields showed resilience. Albacora demonstrated significant growth, with a 5.9% increase compared to the previous quarter.
Frade’s production rose by 1.7%, attributed to a strong performance in April, despite interruptions in May and June. Conversely, Polvo and TBMT experienced a 4.6% decline due to the issues mentioned.
PRIO’s consolidated production surpassed JPMorgan’s estimate of 86,900 boepd by 3.4%, driven by better-than-expected outputs from Frade and Albacora fields.
Consequently, JPMorgan anticipates a neutral market reaction to these figures, aligning with expectations.
Itaú BBA also predicts a neutral response, noting that the increase in Albacora Leste’s production partially offset the lower output from other fields.
Their analysis aligns with production data from the ANP site, supporting this outlook.
PRIO’s June Production and Market Insights
Goldman Sachs highlighted the limited visibility on when Ibama operations might normalize.
This uncertainty presents potential risks to future production estimates. Despite this, Goldman Sachs maintains a buy recommendation for PRIO, favoring it within their energy sector coverage.
They expect momentum to remain weak until Ibama resumes regular operations.
Both Itaú BBA and JPMorgan reiterate their buy recommendations for PRIO, with target prices set at R$ 61 and R$ 65, respectively.
These insights underscore the complexities and potential of PRIO’s production landscape.
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
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.