(MENAFN- The Rio Times) In August 2024, PetroRecôncavo (RECV3) saw its production drop by 4% to 25,700 barrels of oil equivalent per day due to various operational challenges.
Let's examine the production figures across different assets:
Ativo Potiguar : Production held steady at 13,200 boed compared to July.
Ativo Bahia: Output decreased by 8% to 12,500 boed from the previous month.
Reasons for Decline
Several non-recurring events contributed to the production decrease:
Midstream Maintenance: Scheduled third-party midstream operations temporarily impacted production.
Well Intervention: Work on the GTE-03 well also led to a temporary production decline.
However, PetroRecôncavo managed to resolve these issues by month-end. Consequently, production returned to July levels after operations stabilized.
Company Background
PetroRecôncavo, founded in 1997, calls Salvador, Brazil its home. The company went public in 2021 on the B3 stock exchange. Their focus areas include:
Oil and gas production
Efficient reservoir management
Development of mature fields
Moreover, PetroRecôncav operates various oil and natural gas concessions. They serve as both concessionaire and operator in these fields.
Financial Performance
PetroRecôncavo's second quarter 2024 results show mixed performance:
Net income fell 23% year-over-year to R$136 million ($24 million).
EBITDA grew 40% year-over-year, reaching R$447 million ($80 million).
Net revenue increased 26% year-over-year to R$826 million ($148 million).
Furthermore, the company's average production rose 4% in the first half of 2024. It reached 26,300 boed compared to the same period last year.
Market Outlook
As of August 29, 2024, PetroRecôncavo's stock (RECV3) traded at R$20.50. Analysts set a target price of R$29.00, suggesting a potential 41% upside.
Several factors influenced the company's performance in 2024:
Weather Conditions: Extreme weather in April affected production.
Currency Fluctuations: A 5% increase in average dollar rates boosted revenue.
Oil Prices: A 2% rise in average Brent prices contributed to revenue growth.
Despite challenges, PetroRecôncavo actively works to optimize its operations. They focus on increasing production through workover programs and asset investments.
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