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The Increase In Production And Sales Of The Octopus And Hammerhead Fields Compensated For The Effect Of The Fall In The Price Of Oil Barrels And Leveraged The Company’s Performance
With its growth target in focus, PetroRio achieved a net revenue of R$ 488.7 million in the period between July and September 2020 (third quarter), representing a 22% increase in revenue compared to 2019. This revenue is due to the large volume of oil produced and sold.
The EBITDA (from English “earnings before interest, taxes, depreciation and amortization“) adjusted by PetroRio reached R$ 204 million, up 10% compared to the third quarter of 42%.
The oil fields of Hammerhead and Octopus mitigated the effect of low oil barrel prices by increasing their production and selling them in unprecedented volumes, which explains this result.
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Petrobras approved the final investment decision for SEAP I (Sergipe Deep Waters), opening a new production frontier in the Northeast: Total investment for the two modules (SEAP I + SEAP II) exceeds R$ 60 billion, with an estimated production of more than 1 billion barrels of oil equivalent.
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Oil continues to fall as negotiations advance between the United States and Iran and the expectation of greater global geopolitical stability.
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Oil sees sharp drop after rumors of a deal between the United States and Iran raise hopes for an end to the war in the Middle East.
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Brazil’s oil production soars and hits an all-time high for the second consecutive month, driven by the pre-salt and the advancement of energy sector giants.
As a highlight of the quarter, the total production of the company increased by 44% compared to the third quarter of 2019. This increase is the result of the acquisition of 80% of the Hammerhead Field, completed on August 3, 2020, and the successful Octopus campaign, which added 2,500 barrels upon its completion in March 2020.
Still in the operational area, another relevant factor was the improvement in lifting cost for the seventh consecutive quarter in 3Q20. In the period, the indicator showed a reduction of 44% compared to the third quarter of 2019.
“We managed to review and readjust costs as planned, and we are overcoming this challenging moment with higher production, a smaller structure, and well-capitalized. These results are the fruits of the resilience of our business model, the agility of our teams, and the ability to integrate our assets,” highlighted Roberto Monteiro, CEO of PetroRio.
DEBT AND CASH
In the third quarter, PetroRio also recorded a continuous reduction in the net debt/adjusted EBITDA ratio, which reached 1.9 times. At the end of the third quarter, the company reported a cash position of US$ 136 million.
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