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Operational Hurdles Can’T Stop Prio’S Profit Surge
(MENAFN- The Rio Times) In Q2 2024, Brazil's Prio (PRIO3) reported a significant net profit increase, reaching $272.8 million-a 48% jump from last year.
This robust performance occurred despite various operational challenges and market fluctuations. Revenue rose 37%, hitting $727.5 million.
Adjusted EBITDA also saw a significant increase, surging 76% to $584.7 million; operationally, it adjusted up 64%.
The company maintained daily production at 89.8 thousand barrels, achieving a cost-effective lifting cost of $7.6 per barrel.
The revenue boost largely resulted from a 19% sales increase and a 9% rise in international Brent prices.
EBITDA was affected by a new oil export tax effective from March 1 to June 28, 2023. By quarter's end, Prio's net debt to adjusted EBITDA ratio stood at a low 0.4 times.
Operational disruptions also marked the quarter. The ODP3 well in Frade and the IBMT-8H, TBMT-10H, and TBMT-4H wells in Tubarão Martelo saw suspensions pending environmental approvals.
Currently, Prio awaits decisions from Ibama, having sought licenses since January 2024 for the Wahoo field development and four well interventions.
Despite these obstacles, Prio' financial strength and strategic responses underscore its resilience and adaptability in a volatile global oil market.
The company's ability to maintain profitability and expand in the face of regulatory and operational challenges emphasizes its importance in the energy sector, reflecting broader economic and environmental implications.
This robust performance occurred despite various operational challenges and market fluctuations. Revenue rose 37%, hitting $727.5 million.
Adjusted EBITDA also saw a significant increase, surging 76% to $584.7 million; operationally, it adjusted up 64%.
The company maintained daily production at 89.8 thousand barrels, achieving a cost-effective lifting cost of $7.6 per barrel.
The revenue boost largely resulted from a 19% sales increase and a 9% rise in international Brent prices.
EBITDA was affected by a new oil export tax effective from March 1 to June 28, 2023. By quarter's end, Prio's net debt to adjusted EBITDA ratio stood at a low 0.4 times.
Operational disruptions also marked the quarter. The ODP3 well in Frade and the IBMT-8H, TBMT-10H, and TBMT-4H wells in Tubarão Martelo saw suspensions pending environmental approvals.
Currently, Prio awaits decisions from Ibama, having sought licenses since January 2024 for the Wahoo field development and four well interventions.
Despite these obstacles, Prio' financial strength and strategic responses underscore its resilience and adaptability in a volatile global oil market.
The company's ability to maintain profitability and expand in the face of regulatory and operational challenges emphasizes its importance in the energy sector, reflecting broader economic and environmental implications.
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