Prio’s Profit Dips in Q3 2024: A Closer Look at the Oil Company’s Performance
The Brazilian oil company Prio faced a significant downturn in its financial performance during the third quarter of 2024. The company reported a net profit of $165 million, marking a 52% decrease compared to the same period last year. This decline reflects the challenging landscape of the global oil industry.
Prio’s EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $321.5 million between July and September 2024. This figure represents a 48% year-on-year decrease. The adjusted EBITDA, which excludes non-recurring effects, also fell by 48% to $327.6 million.
The company’s net revenue for the quarter stood at $474 million, 40% lower than the same period in 2023. This decline was primarily due to a 30% reduction in the company’s production and a consequent 33% drop in sales. The Frade field contributed 56.5% of the total revenue, while Albacora Leste and the Polvo and TBMT cluster accounted for 29.5% and 14% respectively.
Prio’s financial result was negative $27 million in the period, compared to negative $17 million a year earlier. This was negatively impacted by interest on loans and financing, considering the higher debt position in the third quarter of 2024.
At the end of September, the oil company’s net debt was $789 million, $49 million higher than at the end of the second quarter. The leverage, measured by net debt to adjusted EBITDA, ended the period at 0.5 times, slightly higher than the previous quarter’s 0.4 times.
Prio’s Profit Dips in Q3 2024: A Closer Look at the Oil Company’s Performance
On the operational front, Prio’s total production between July and September was 70,273 thousand barrels of oil equivalent per day (boepd). This represents a 29.7% decrease compared to the same quarter in 2023 and a 21.8% drop from the second quarter of 2024.
The production cost, known as lifting cost, ended September at $9.8 per barrel, a 40.9% increase compared to the same period last year. As a result of the production decline, Prio sold 33% less than in the third quarter of 2023, reaching 6.5 million barrels.
These figures paint a picture of a company navigating through challenging times in the oil industry. While Prio faces headwinds, it continues to operate in a sector that remains crucial to global energy needs.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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