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PetroReconcavo invests US$ 60 million in UPGN Miranga, strong cash generation drives dividends of R$ 379 million and profit of R$ 159 million in 3Q24.
PetroReconcavo reported a net profit of R$159 million in the third quarter of 2024, representing a 17% increase compared to the previous quarter. The company recently revealed its intention to inject approximately US$60 million into the development of a new UPGN Miranga in Bahia, standing out as a strategic investment to strengthen its operations in the country. With this initiative, PetroReconcavo demonstrates its commitment to leveraging local infrastructure and expanding its production capacity.
Furthermore, the Company stands out for its robust cash generation capacity, which resulted in the distribution of dividends of R$379 million to its shareholders during this period. With two decades of experience in the sector, PetroReconcavo remains dedicated to optimizing its portfolio and exploring new horizons for growth. This strategy not only benefits its investors, but also contributes to regional economic development, consolidating its presence in the energy market.
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3Q24 Financial Results
Today, PetroReconcavo released its financial and operational figures for the third quarter of 2024. The Company reported a net profit of R$159 million for this quarter, representing a 17% growth when compared to 2Q24 and an increase of 9% compared to the same period last year. Net revenue reached R$850 million, registering a 3% growth compared to the immediately previous quarter and 14% compared to the previous year.
Reported EBITDA was R$439 million, down 2% compared to 2Q24 and down 16% compared to 3Q23. Thanks to strong cash generation that occurred during this period, PetroReconcavo will distribute dividends of R$ 379 million, equivalent to a dividend yield of approximately 7,5%. These dividends (R$ 1,29 per share) will be paid on November 26, 2024.
Stability and Investments
The quarter ended with leverage of 0,52x Net Debt/EBITDA for the last 12 months, indicating a healthy financial balance sheet and allowing PetroReconcavo to maintain a local Corporate Rating of AA, according to Moody's, which demonstrates a stable outlook. The average daily production was 26,4 thousand barrels of oil equivalent (BOED), showing stability in relation to the previous quarter.
In October, PetroReconcavo's consolidated production reached 26,8 thousand BOED, an increase of 1% monthly, mainly due to a 3,3% increase in oil production at the Bahia Asset and a 2,2% increase in gas production at the Potiguar Asset. 'These results validate our strategy focused on sustainable growth and reaffirm our commitment to shareholders', said Rafael Procaci da Cunha, the Company's Vice President of Finance and IR.
Economic Strengthening
The beginning of October also marked the Company's second debenture issuance, worth R$650 million, with the purpose of paying off a previous debt in advance, achieving better cost and term conditions. This strengthens PetroReconcavo's economic base, in addition to optimizing financial conditions.
Advances in Midstream
PetroReconcavo revealed a historic investment of around US$ 60 million in construction of a new UPGN, the Miranga Natural Gas Processing Unit (UPGN) in Bahia, which represents an important advance in the midstream segment. This new UPGN, scheduled to start operations in 2027, will initially have the capacity to process 950 thousand m³/day with potential to increase up to 1,5 million m³/day. The Company also announced the signing of three Memorandums of Understanding with Ultracargo, Terminais Marítimos do Brasil SA, belonging to the Dislub Equador group, and the Pecém Industrial and Port Complex Development Company – CIPP, in addition to an agreement with Shell Western Supply and Trading Limited and Shell Trading Brasil.
Strategic Partnerships
These agreements aim to define cooperation guidelines for the development of projects focused on the logistics of flow, storage and marketing of PetroReconcavo's oil, strengthening its performance as an independent oil and gas producer.
History and Perspectives
Founded 24 years ago, PetroReconcavo has not only established itself as one of the leading independent oil and natural gas producers in Brazil, but has also specialized in the management, development and revitalization of onshore fields. The Company has developed a vertical structure, using its own equipment and workforce for essential field services, such as workover rigs, drilling and well stimulation units.
Since 2022, PetroReconcavo has stood out in the natural gas market, supplying all of its production independently and innovatively, after signing the first gas processing and outflow contracts in the Northeast. The Company operates 55 oil and gas concessions in the Potiguar, Recôncavo and Sergipe-Alagoas Basins and has eight exploratory blocks, in addition to participating in concessions operated by third parties.
Commitment to Diversity
In September 2024, the Company was added to IDIVERSA B3, a performance index for B3 companies focused on diversity and inclusion, underlining its commitment to these values in its operations. PetroReconcavo remains firmly listed on B3's Novo Mercado with the ticker RECV3, committing to generate continuous value in the Brazilian onshore sector.
Source: PETRORECONCAVO Press
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