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Even with the volatility of the oil market, Itaú BBA maintains a buy recommendation for PRIO’s shares (PRIO3), highlighting the strong cash flow, low production cost, and the potential for organic growth of the Brazilian oil company.
The oil company PRIO (PRIO3) has once again stood out in the oil and gas sector after Itaú BBA reaffirmed its optimistic view of the company in a report released this week. According to the bank, PRIO maintains a privileged position in the industry due to its low extraction cost, financial discipline, and strong expansion potential in mature fields, factors that ensure a competitive advantage even amid international market volatility.
The report, titled Smart Selection, reinforces Itaú BBA’s confidence that PRIO still has “plenty of oil to burn.” For analysts, the company manages to balance growth and operational efficiency, which is rare in the oil and gas sector.
Expansion in Frade and Wahoo Sustains Margins Among the Highest in the Country
Itaú BBA emphasized that PRIO has been increasing its oil production mainly in the Frade and Wahoo fields, operations that record margins among the highest in the Brazilian industry. The oil company, according to the bank, “continues to deliver volumes above estimates, reinforcing the robustness of its operational model.”
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This positive performance is attributed to the successful strategy of reactivating acquired assets at favorable prices, investing in technology and efficiency. The approach, according to the report, ensures high returns on invested capital and positions PRIO as one of the most efficient companies on the stock exchange.
Operational Efficiency and Strong Cash Ensure Resilience Amid Oil Volatility
Despite recent fluctuations in the price of Brent oil, Itaú BBA states that PRIO’s cash generation remains robust. The company, even with a barrel oscillating between US$ 80 and US$ 85, demonstrates the ability to maintain healthy margins and sustain new phases of growth, in addition to making room for future dividend distribution.
According to the report, the oil company combines efficient cost management with a focus on long-term profitability, a characteristic that sets it apart from competitors and reinforces its attractiveness to investors. “The company benefits from lifting costs below the global average and from management that prioritizes efficiency and profitability,” the document points out.
Itaú BBA Maintains Buy Recommendation and Sees PRIO as a Highlight of the Stock Exchange
In the Smart Selection survey, Itaú BBA maintains a buy recommendation for PRIO, arguing that the projected cash flow for the coming quarters will remain strong. The bank assesses that the operational and financial performance of the oil company remains consistent, supported by strict capital disciplines and a portfolio of strategic assets that still present appreciation potential.
Furthermore, the report reinforces that PRIO’s strategy of recovering mature fields has proven to be effective, transforming assets considered marginal by other companies into profitable operations. This differentiator supports the view that the company still has room to grow both inside and outside of Brazil.
For Itaú BBA, PRIO’s case shows that oil continues to be a strategic and profitable asset when managed with efficiency and innovation. The bank assesses that, with the continuation of the cost control policy and new projects in development, the company is likely to maintain a performance superior to that of its peers in the upcoming market cycles.
Thus, even amid a challenging global scenario and energy transition, PRIO consolidates itself as one of the main players in the oil sector in Latin America, combining technology, financial stability, and a long-term vision.
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