This article first appeared on GuruFocus .
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Revenue:$1.213 billion for Q1 2026.
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EBITDA:$852 million with a margin of 76%.
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Net Income:Approximately $460 million.
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Daily Production:155,000 barrels.
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Barrels Sold:14.8 million barrels.
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Lifting Cost:$9.40 per barrel.
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Operating Efficiency:95% at Albacora Leste.
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Net Debt:$4.372 billion.
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Net Debt to EBITDA Ratio:2 times.
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Cash CapEx:$308 million.
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Average Brent Price:$83.50 per barrel.
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FOB Equivalent Sales Price:$75.34 per barrel.
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Financial Income:$128 million.
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Deferred Income Tax:Positive impact of $132 million.
Release Date: May 06, 2026
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 ) achieved record production levels, with daily production reaching 155,000 barrels and 14.8 million barrels sold in Q1 2026.
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The company reported a significant reduction in lifting costs, down to $9.40 per barrel, the lowest since 2023.
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Wahoo Field's first oil production exceeded expectations, with three wells producing 30,000 barrels daily, slightly ahead of schedule.
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Operational efficiency reached a record 95% at Albacora Leste, showcasing improved performance across assets.
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PRIO SA ( PTRRY ) reported strong financial results with $1.2 billion in revenue, $850 million in EBITDA, and $450 million in net income for Q1 2026.
Negative Points
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Despite strong EBITDA, the company's cash position did not improve due to accelerated CapEx spending and increased accounts receivable.
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Net debt over EBITDA ratio remains at 2 times, with a target to reduce it to 1 times by the end of 2027, indicating ongoing leverage concerns.
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The company faces potential arbitration with Equinor regarding indemnification for the Peregrino acquisition, which could delay financial settlements.
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There are operational delays in completing the fourth well at Wahoo Field due to technical issues with a third-party vessel.
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PRIO SA ( PTRRY ) anticipates a decline in production at Wahoo Field by the end of the year, highlighting potential challenges in maintaining production levels.
Q & A Highlights
Q: Could you provide an update on the Peregrino field activities and the potential tieback between TBMT and Peregrino? A: Peregrino is currently undergoing drilling activities, and we expect results soon. We are optimistic about the region and plan to conduct production tests to evaluate the reservoir. Regarding the tieback between TBMT and Peregrino, the engineering group is detailing the project, and we are assessing the necessary CapEx. We need more time to put wells into production and possibly drill another well to make informed decisions.
Q: Can you elaborate on the trading discounts and how they have improved in Q1? A: Trading discounts have improved due to a tighter global market. For Peregrino, the discount remains similar to past levels, around $8-$9 per barrel. However, Frade has been sold at a premium compared to Brent, and ABL has been sold close to Brent prices. Overall, we expect a better discount than $8 per barrel for Q2, potentially around $5-$6 per barrel, but this is subject to change based on market conditions.
Q: What is the company's approach to the dividend policy given the current oil price volatility? A: The dividend policy will be designed with a table that correlates Brent oil prices over the last 12 months with target leverage ratios. For example, a net debt over EBITDA ratio of 1 is considered with an oil price of $60. If the price is $80, the leverage target would be lower. This approach allows flexibility in different scenarios.
Q: Could you provide more details on the Wahoo field's production expectations and potential decline? A: The Wahoo wells have exceeded expectations in terms of productivity, but we are cautious about the reservoir's volume. We plan to maintain production at 30,000 barrels per day and increase to 40,000 barrels per day with the fourth well. We expect to see a decline in the second half of the year, but we will continue to assess the reservoir to optimize recovery.
Q: What are the plans for CapEx execution in 2026 and 2027? A: For 2026, we anticipate executing around $550-$600 million in CapEx, up from the initial $500 million estimate, due to accelerated projects like Frade and Arapuca. In 2027, we expect to return to normal levels, with around $500 million in CapEx, focusing on drilling new wells and maintenance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
