PetroReconcavo Sees Production Increase and Doubles Profit in Q1 2025 Focusing on Onshore Oil

Written by Débora Araújo

Published on 09/05/2025 at 17:33

Foto: PetroReconcavo/Reprodução

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Company Reaches R$ 227 Million in Net Profit, Boosted by Increase in Production and Operational Efficiency; Dividends Total R$ 263.4 Million.

PetroReconcavo started the year with solid results and consistent progress in its oil exploration strategy in onshore fields. In the first quarter of 2025, the company recorded a net profit of R$ 227 million, representing a growth of 107% compared to the same period in 2024. The data was released this week and also shows an increase in production, operational gains, and a rise in the distribution of dividends to shareholders.

The strong performance reflects the direct impact of the drilling program initiated in the second half of last year, focusing on fields in the Northeast, especially the Tiê field in Bahia, along with maintenance and reactivation actions of wells.

Production Grows for the Fourth Consecutive Quarter

In the first quarter, the average production reached 27.3 thousand barrels of oil equivalent per day (boe/day), representing a 4% increase compared to the fourth quarter of 2024. This is the fourth consecutive quarter of growth, reinforcing the company’s ability to steadily increase its production.

ARTICLE CONTINUES BELOW

Revenue and EBITDA Also Up

PetroReconcavo’s net revenue for the period was R$ 861 million, a 16% increase compared to the same period in 2024. The adjusted EBITDA totaled R$ 424 million, with a 59% margin, indicating efficiency in cost management and operational profitability. The EBITDA growth was 20% year-on-year.

The free cash flow reached R$ 207 million, advancing 45% compared to the fourth quarter of the previous year, strengthening the company’s financial position for new investments and profit distribution.

Dividends Reinforce Shareholder Returns

With the positive results, the Board of Directors approved the distribution of R$ 263.4 million in dividends, equivalent to R$ 0.90 per share, representing an approximately 7% dividend yield based on the current share price of the company.

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This level of remuneration to shareholders reinforces PetroReconcavo’s commitment to generating sustainable and recurring value, even amid fluctuations in international oil prices and exchange rates.

Onshore Operations of PetroReconcavo Gain Prominence

PetroReconcavo’s strategy remains focused on the exploration and production of oil in onshore areas, concentrating on mature assets acquired from Petrobras in recent years. The company is now one of the main operators in the Brazilian onshore segment, with operations in the states of Rio Grande do Norte and Bahia.

According to the company’s CEO, José Firmo, the quarter’s results confirm the alignment between the company’s strategic pillars:

“The advancement of production and the consistency of the results demonstrate the alignment between strategy, operations, and capital. This is the reflection of a committed team prepared to continue delivering, even in challenging scenarios. We are increasingly consolidated as a benchmark in the Brazilian onshore.”

Outlook for PetroReconcavo for the Rest of 2025

The company maintains its growth outlook throughout the year, continuing the drilling program, optimizing existing wells, and reinforcing support infrastructure. The expectation is that the increase in production and stability in international oil prices will keep operational and financial indicators at elevated levels.

PetroReconcavo is also monitoring opportunities to expand its asset base, either through new auctions or acquisitions in the secondary market, focusing on high productivity fields and low operational costs.

PetroReconcavo Sees Production Increase and Doubles Profit in Q1 2025 Focusing on Onshore Oil

Company Reaches R$ 227 Million in Net Profit, Boosted by Increase in Production and Operational Efficiency; Dividends Total R$ 263.4 Million.

Production Grows for the Fourth Consecutive Quarter

Revenue and EBITDA Also Up

Dividends Reinforce Shareholder Returns

Onshore Operations of PetroReconcavo Gain Prominence

Outlook for PetroReconcavo for the Rest of 2025

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PetroReconcavo Sees Production Increase and Doubles Profit in Q1 2025 Focusing on Onshore Oil

Company Reaches R$ 227 Million in Net Profit, Boosted by Increase in Production and Operational Efficiency; Dividends Total R$ 263.4 Million.

Production Grows for the Fourth Consecutive Quarter

Revenue and EBITDA Also Up

Dividends Reinforce Shareholder Returns

Onshore Operations of PetroReconcavo Gain Prominence

Outlook for PetroReconcavo for the Rest of 2025

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With a wingspan of 152 meters, 76 tires, and a capacity to carry 1,270 tons, the Boeing Pelican was the giant “flying ship” that promised to cross oceans close to the water on an invisible air cushion beneath its wings.

A Chinese factory in Guangdong is assembling a humanoid robot every 30 minutes while Tesla, Figure, and Boston Dynamics still struggle to deliver 10 thousand per year.

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