For another day followed by PetroRio (PRIO3) soars on the São Paulo Stock Exchange. At around 11:50 am the oil company’s shares rose + 4.42% to R $ 52.71.
The company specializes in the management of oil reservoirs and the development of mature fields. Thus, it focuses on investment and the recovery of assets in production. Such a strategy has proved to be efficient.
According to data from the PetroRio’s third quarter, the company recorded a 44% increase in its total production. This performance is due to the acquisition of 80% of the Tubarão Martelo Field (TBMT), in addition to the successful Polvo campaign.
In addition, the company follows a series of 7 quarters with a reduction in its lifting cost – extraction cost. Thus, the 44% drop in the company’s extraction cost was decisive for the company’s continuous cash generation.
THE PetroRio ended the third quarter of 2020 with a $ 12.8 lifting cost – record this number.
However, despite the growth in revenue and EBITDA, the company recorded a net loss of R $ 117.7 million.
Shopping and more shopping
On Thursday last week, 19, PetroRio announced the purchase of 60% of the Itaipu Field and 35.7% of the Wahoo Field, both from British Petroleum. Accordingly, oil production projections after the purchase encouraged investors, and PRIO3 shoot 29.94% on the day.
You kept the lifting cost in your head, right? Well then.
As the Wahoo Field is only 35 km from the Campo de Frade, the company could use the same infrastructure – tieback. That way, the company could reduce its lifting cost to an incredible $ 2.
Therefore, as it is estimated an increase of 40-45 thousand barrels / day in its production, and a total project cost of US $ 385 million, each barrel would cost US $ 7. In addition to the lifting cost, the total cost / barrel would be $ 9.
According to PetroRio, Wahoo oil could be sold at no discount compared to Brent oil – used as a reference by Petrobras (PETR4) – today ~ $ 48.
I wonder how to analyze an action? The Investor Guide made a special post about pointing out indicators of profitability, growth, indebtedness and price. Read it.
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Notice: The text presented in this column does not necessarily reflect the opinion of CriptoFácil.