This article first appeared on GuruFocus .
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Revenue:USD 607 million for the third quarter.
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EBITDA:USD 320 million, with a margin of 57%.
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Net Income:USD 92 million.
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Lifting Cost:USD 17.4 per barrel, impacted by Peregrino shutdown.
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Cash Position:USD 1.7 billion at quarter-end, currently over USD 2 billion.
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Gross Debt:Approximately USD 4.6 billion.
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Production:Total production for the quarter was 88,000 barrels per day.
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Bond Issuance:USD 700 million issued in the third quarter.
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Debt Maturity:Significant reduction in 2026 debt due to bond buyback.
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Operating Efficiency:Albacora field achieved a record 91% for the quarter.
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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PRIO SA ( PTRRY ) reported strong performance in its other assets, including Frade, Albacora, and TBMT fields, despite challenges at Peregrino.
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The company successfully obtained an installation license at Wahoo Field, with two wells already drilled and results aligning with expectations.
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Albacora's operating efficiency reached a record 91% for the quarter, with some months achieving even higher efficiency.
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PRIO SA ( PTRRY ) improved its financial position by issuing $700 million in bonds and maintaining a strong cash position of over $2 billion.
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The company reported an EBITDA of $320 million for the third quarter, maintaining a similar level to the previous quarter despite the Peregrino shutdown.
Negative Points
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The Peregrino field experienced a significant 63-day shutdown due to regulatory issues, impacting production and financial results.
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The lifting cost increased to $17.4 per barrel, primarily due to the Peregrino shutdown and associated costs being expensed in the quarter.
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Albacora field faced challenges with its compression system, leading to downtime and highlighting the need for improved redundancy.
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The company's debt increased, with gross debt amounting to approximately $4.6 billion, leading to higher financial expenses.
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PRIO SA ( PTRRY ) faced a slight increase in leverage, reaching a net debt to EBITDA ratio of 2x, influenced by the Peregrino shutdown.
Q & A Highlights
Q: Can you explain the company's strategy regarding share buybacks and dividends, considering the current cash position and future cash generation? A: Roberto Monteiro, CEO, explained that the company is focused on maintaining a strong cash position and is considering share buybacks due to the high returns compared to past M&A deals. The company plans to resume buybacks once leverage starts to decline, aiming for a net debt to EBITDA ratio of 1x by the end of 2027. Dividends are not a current focus, but could be considered once leverage is reduced.
Q: What are the expectations for the Peregrino field closing, and how does the downtime impact this? A: Roberto Monteiro, CEO, stated that the Peregrino closing is contractually scheduled for February 2026, but there is potential to close earlier. The downtime is being addressed in negotiations with Equinor, and both parties are working towards a resolution. The downtime will be factored into the price adjustment for the closing.
Q: Can you provide an update on the Wahoo field drilling and expected CapEx? A: Francisco Francilmar Fernandes, COO, mentioned that the second well at Wahoo met expectations, with better reservoir performance than anticipated. The drilling of the third and fourth wells is ongoing, with completion expected by March 2026. Milton Neto, CFO, added that the majority of CapEx for Wahoo has been spent, with around $200 million remaining, split between the current and next quarter.
Q: How is the company addressing the challenges faced with Albacora Leste, and what are the next steps? A: Roberto Monteiro, CEO, highlighted that the main issue at Albacora Leste is the gas compression system, which is being addressed with new equipment. The platform has already achieved high operational efficiency, and further improvements are planned for non-critical systems to enhance performance.
Q: What lessons have been learned from recent acquisitions, and how will they influence future M&A decisions? A: Roberto Monteiro, CEO, noted that the Albacora Leste acquisition highlighted the importance of addressing asset degradation during the interim period and the need for equipment replacement to implement preventive maintenance. These lessons have been applied to the Peregrino acquisition, ensuring better management of the interim period and compliance with regulatory standards.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
