Prio S.A.
Quarterly Information - ITR March 31, 2024
Independent Auditors' Report on the Review of the Quarterly Information
Independent auditors' review report on quarterly information | 3 | |
Balance sheet | 5 | |
Balance sheet | 6 | |
Statements of income | 7 | |
Statements of comprehensive income | 8 | |
Statements of changes in shareholders' equity | 9 | |
Statements of cash flows | 10 | |
Statements of added value | 11 | |
1. | Operations | 12 |
2. | Accounting policies material to the quarterly information | 14 |
3. | Cash and cash equivalents | 19 |
4. | Accounts receivable | 19 |
5. | Recoverable taxes | 20 |
6. | Investments | 20 |
7. | Property, plant and equipment (Consolidated) | 22 |
8. | Intangible assets (Consolidated) | 24 |
9. | Suppliers | 27 |
10. | Labor obligations | 28 |
11. | Taxes and social contributions payable | 28 |
12. | Loans and financing | 28 |
13. | Local debentures (includes conversion swaps) | 30 |
14. | Lease operations | 32 |
15. | Current and deferred income tax and social contribution | 33 |
16. | Provision for abandonment (ARO) | 34 |
17. | Impairment | 35 |
18. | Shareholders' equity | 35 |
19. | Related party transactions (Parent company) | 37 |
20. | Net revenue | 38 |
21. | Costs of products sold | 39 |
22. | Other revenues and expenses | 39 |
23. | Financial income (loss) | 40 |
24. | Income tax and social contribution | 41 |
25. | Segment reporting (Consolidated) | 41 |
26. | Objectives and policies for financial risk management | 42 |
27. | Insurance | 46 |
28. | Contingencies | 47 |
29. | Subsequent events | 49 |
Independent auditors' review report on quarterly information
To the
Shareholders, Board of Directors and Officers of
Prio S.A.
Rio de Janeiro - RJ
Introduction
We have reviewed the accompanying individual and consolidated interim financial information, contained in the Quarterly Information Form (ITR) of Petro Rio S.A. for the quarter ended March 31, 2024, comprising the statement of financial position as of March 31, 2024, and the related statements of profit or loss and of comprehensive income for the three month period then ended, and the statements of changes in equity and of cash flows for the three month period then ended, including the explanatory notes.
The executive board is responsible for the preparation of the individual and consolidated interim financial information in accordance with Brazilian Accounting Standard NBC TG 21 and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this financial information in conformity with the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the individual and consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above is not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of Quarterly Information Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).
3
Other matters
Statements of value added
The abovementioned quarterly information includes the individual and consolidated statements of value added (SVA) for the three-month period ended March 31, 2024, prepared under the responsibility of the Company's executive board and presented as supplementary information under IAS 34. These statements have been subject to review procedures performed together with the review of the quarterly information with the objective to conclude whether they are reconciled to the interim financial information and the accounting records, as applicable, and if their format and content are in accordance with the criteria set forth by NBC TG 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, in accordance with the criteria set forth by this Standard and consistently with the overall individual and consolidated interim financial information.
Rio de Janeiro, May 7, 2024.
4
Balance sheet
March 31, 2024 and December 31, 2023 (In thousands of reais-R$)
Parent Company | Consolidated | ||||
Note | 03/31/2024 | 12/31/2023 | 03/31/2024 | 12/31/2023 | |
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 3 | 15,287 | 18,248 | 4,030,098 | 2,335,403 |
Accounts receivable | 4 | - | - | 1,431,728 | 1,743,491 |
Oil inventories | 21 | - | - | 350,714 | 254,330 |
Inventory of consumables | - | - | 436,281 | 397,321 | |
Financial instruments | 26 | - | - | - | 358 |
Recoverable taxes | 5 | 2,007 | 1,954 | 365,340 | 347,658 |
Advances to suppliers | 34 | 34 | 118,646 | 100,227 | |
Advances to partners | - | - | - | 93,188 | |
Prepaid expenses | 85 | 75 | 17,694 | 22,129 | |
Other receivables | - | - | 39,903 | 769 | |
17,413 | 20,311 | 6,790,404 | 5,294,874 | ||
Non-current assets | |||||
Advances to suppliers | - | - | 232 | 225 | |
Mark-to-market of debenture swaps | 13 | - | - | 93,143 | 80,698 |
Deposits and pledges | 28 | - | - | 29,938 | 29,971 |
Recoverable taxes | 5 | - | - | 2,396 | 4,225 |
Deferred taxes | 15 | 12,611 | 10,191 | 226,895 | 516,582 |
Related parties | 19 | 70,596 | 9,355 | - | - |
Right-of-use (Lease CPC 06.R2/IFRS 16) | 14 | - | - | 2,053,174 | 2,044,361 |
Investments | 6 | 15,973,016 | 14,403,401 | - | - |
Property, plant and equipment | 7 | 199 | 224 | 10,661,410 | 9,425,118 |
Intangible assets | 8 | - | - | 10,921,526 | 10,914,878 |
16,056,422 | 14,423,171 | 23,988,714 | 23,016,058 | ||
Total assets | 16,073,835 | 14,443,482 | 30,779,118 | 28,310,932 |
See the accompanying notes to the quarterly information.
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Balance sheet
As of March 31, 2024 and December 31, 2023 (In thousands of reais-R$)
Parent Company | Consolidated | ||||
Note | 03/31/2024 | 12/31/2023 | 03/31/2024 | 12/31/2023 | |
Liabilities and shareholders' equity | |||||
Current liabilities | |||||
Suppliers | 9 | 522 | 644 | 636,779 | 834,778 |
Labor obligations | 10 | 13,954 | 15,083 | 179,617 | 266,893 |
Taxes and social contributions | 11 | 654 | 676 | 410,553 | 593,007 |
Loans and financing | 12 | - | - | 1,330,705 | 1,212,632 |
Local debentures (includes conversion swaps) | 13 | - | - | 7,510 | 39,430 |
Financial instruments | 26 | - | - | 5,814 | - |
Advance from partners | - | - | 4,522 | - | |
Contractual charges (Leases - IFRS 16) | 14 | - | - | 232,882 | 224,502 |
Accounts payable - earn out Albacora Leste | 8 | - | - | 826,234 | 288,465 |
Other accounts payable | - | - | - | 4,104 | |
15,130 | 16,403 | 3,634,616 | 3,463,811 | ||
Non-current liabilities | |||||
Loans and financing | 12 | - | - | 3,732,994 | 4,340,854 |
Local debentures (includes conversion swaps) | 13 | - | - | 3,841,843 | 1,800,248 |
Provision for abandonment (ARO) | 16 | - | - | 1,191,766 | 1,121,429 |
Provision for contingencies | 28 | 400 | 400 | 994,128 | 946,101 |
Related parties | 19 | 661,588 | 548,214 | - | - |
Contractual charges (Leases - IFRS 16) | 14 | - | - | 1,948,820 | 1,936,736 |
Accounts payable - earn out Albacora Leste | 8 | - | - | - | 786,723 |
Other liabilities | 187 | 185 | 38,421 | 36,750 | |
662,175 | 548,799 | 11,747,972 | 10,968,841 | ||
Shareholders' equity | |||||
Realized share capital | 18 | 7,611,387 | 5,352,792 | 7,611,387 | 5,352,792 |
Capital reserves | (242,064) | (171,877) | (242,064) | (171,877) | |
Profit reserves | 6,601,741 | 8,801,741 | 6,601,741 | 8,801,741 | |
Accumulated translation adjustment | 299,387 | (184,660) | 299,387 | (184,660) | |
Equity valuation adjustments | 13 | 80,526 | 80,284 | 80,526 | 80,284 |
Income (loss) for the period | 1,045,553 | - | 1,045,553 | - | |
15,396,530 | 13,878,280 | 15,396,530 | 13,878,280 | ||
Total liabilities and shareholders' equity | 16,073,835 | 14,443,482 | 30,779,118 | 28,310,932 |
See the accompanying notes to the quarterly information.
6
Statements of income
Three-month period ended March 31, 2024 and 2023
(In thousands of reais-R$, except earnings/losses per share)
Parent Company | Consolidated | ||||
Note | 03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | |
Net revenue | 20 | - | - | 3,200,186 | 2,718,313 |
Costs of products/services | 21 | - | - | (1,387,639) | (981,886) |
Gross revenue | - | - | 1,812,547 | 1,736,427 | |
Operating revenues (expenses) | |||||
Geology and geophysics expenses | - | - | (450) | - | |
Personnel expenses | (22,544) | (968) | (42,479) | (29,798) | |
General and administrative expenses | (34) | (224) | (16,786) | (20,677) | |
Expenses with Outsourced Services | (1,511) | (849) | (19,279) | (7,083) | |
Taxes and rates | (861) | (502) | (14,323) | (4,738) | |
Depreciation and amortization expenses | (36) | (92) | (25,497) | (21,338) | |
Equity in net income of subsidiaries | 6 | 1,068,696 | 1,172,312 | - | - |
Other operating revenues (expenses), net | 22 | (70) | (5,432) | 30,023 | (132,950) |
Operating income (loss) before financial income (loss) | 1,043,640 | 1,164,245 | 1,723,756 | 1,519,843 | |
Financial revenues | 23 | 208 | 428 | 53,815 | 26,810 |
Financial expenses | 23 | (8,561) | (1,097) | (289,034) | (231,632) |
Net exchange-rate changes | 23 | 7,883 | 273 | 36,540 | (59,468) |
Income before income tax and social contribution | 1,043,170 | 1,163,849 | 1,525,077 | 1,255,553 | |
Current income tax and social contribution | 24 | - | (1,784) | (180,923) | (124,073) |
Deferred income tax and social contribution | 24 | 2,383 | - | (298,601) | 30,585 |
Income for the period | 1,045,553 | 1,162,065 | 1,045,553 | 1,162,065 | |
Basic and diluted earnings per share | |||||
Basic | 1,248 | 1,371 | 1,248 | 1,371 | |
Diluted | 1,242 | 1,361 | 1,242 | 1,361 |
See the accompanying notes to the quarterly information.
7
Statements of comprehensive income Three-month period ended March 31, 2024 and 2023 (In thousands of reais-R$)
Consolidated | ||
03/31/2024 | 03/31/2023 | |
Income (loss) for the period | 1,045,553 | 1,162,065 |
Mark-to-market of local debenture swaps | 242 | 39,810 |
(-) Deferred taxes on mark-to-market of swaps | (82) | (13,535) |
Translation adjustment on investment abroad, net of taxes | 484,047 | (320,508) |
Other comprehensive income for the period, net of taxes | 484,207 | (294,233) |
Total other comprehensive income for the period, net of taxes | 1,529,760 | 867,832 |
See the accompanying notes to the quarterly information.
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Statements of changes in shareholders' equity
Three-month period ended March 31, 2024 and 2023 (In thousands of reais-R$)
Capital reserve | Accumulated | Equity | ||||||
Capital | Treasury | Profit | translation | valuation | Retained | |||
Capital | reserve | shares | reserve | adjustment | adjustment | earnings | Consolidated | |
Balances at January 1, 2023 | 5,319,674 | 417,862 | (40,435) | 3,682,453 | 601,773 | (89,310) | - | 9,892,017 |
Paid-up capital | 33,118 | - | - | - | - | - | - | 33,118 |
Stock options granted | - | 18,572 | - | - | - | - | - | 18,572 |
Translation adjustment on investment abroad | - | - | - | - | (320,508) | - | - | (320,508) |
Gain (loss) on derivative financial instruments | - | - | - | - | - | 39,810 | - | 39,810 |
Treasury shares | - | - | (49,932) | - | - | - | - | (49,932) |
Gain (loss) with the buyback of preferred shares in the | ||||||||
subsidiary | - | (146,177) | - | - | - | - | - | (146,177) |
Net income for the period | - | - | - | - | - | - | 1,162,065 | 1,162,065 |
Balances at March 31, 2023 | 5,352,792 | 290,257 | (90,367) | 3,682,453 | 281,265 | (49,500) | 1,162,065 | 10,628,965 |
Balances at January 1, 2024 | 5,352,792 | 373,968 | (545,845) | 8,801,741 | (184,660) | 80,284 | - | 13,878,280 |
Paid-up capital | 2,258,595 | - | - | (2,200,000) | - | - | - | 58,595 |
Stock options granted | - | 10,756 | - | - | - | - | - | 10,756 |
Translation adjustment on investment abroad | - | - | - | - | 484,047 | - | - | 484,047 |
Gain (loss) with financial instruments | - | - | - | - | - | 242 | - | 242 |
Treasury shares | - | - | (80,943) | - | - | - | - | (80,943) |
Net income for the period | - | - | - | - | - | - | 1,045,553 | 1,045,553 |
Balances at March 31, 2024 | 7,611,387 | 384,724 | (626,788) | 6,601,741 | 299,387 | 80,526 | 1,045,553 | 15,396,530 |
See the accompanying notes to the quarterly information.
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Statements of cash flows
Three-month period ended March 31, 2024 and 2023 (In thousands of reais-R$)
Parent Company | Consolidated | |||
03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | |
Cash flows from operating activities | ||||
Income (loss) for the year (before taxes) | 1,043,170 | 1,163,849 | 1,525,077 | 1,255,553 |
Depreciation and amortization | 36 | 92 | 637,139 | 302,943 |
Financial revenue | (12,054) | (4,186) | (523,536) | (301,112) |
Financial expenses | 12,009 | 23,710 | 451,396 | 581,014 |
Share-based compensation | 10,756 | 18,572 | 10,756 | 18,572 |
Equity in net income of subsidiaries | (1,068,696) | (1,172,312) | - | - |
Provision for contingencies/losses/R&D | 13 | (13) | 53,148 | 29,688 |
Amendment of the provision for abandonment/IFRS 16 Contracts | - | - | (2,676) | 20,776 |
Negative goodwill on acquisition of Albacora Leste | - | - | - | (16,456) |
(14,766) | 29,712 | 2,151,304 | 1,890,978 | |
(Increase) decrease in assets | ||||
Accounts receivable | - | - | 311,677 | (1,946,768) |
Recoverable taxes | (1,205) | 848 | (63,159) | 48,661 |
Prepaid expenses | (10) | 473 | 5,241 | 7,371 |
Advances to suppliers | - | - | (18,424) | (28,924) |
Oil inventories | - | - | (72,073) | 247,885 |
Inventory of consumables | - | - | (38,960) | (10,348) |
Related parties | (54,674) | (45,495) | - | - |
Advance to partners in oil and gas operations | - | - | 96,000 | (11,740) |
Deposits and pledges | - | - | (580) | (266) |
Other receivables | (30) | 8 | (37,390) | (1,050) |
Increase (decrease) in liabilities | ||||
Suppliers | (3,551) | 1,105 | (150,195) | (233,067) |
Labor obligations | (822) | (7,671) | (81,402) | 38,820 |
Taxes and social contributions | (916) | (329) | (350,219) | (103,255) |
Related parties | 97,392 | 45,156 | - | - |
Contingencies | - | - | - | (2,343) |
Other liabilities | (1) | 565 | (1,585) | 13,939 |
Net cash (invested in) from operating activities | 21,417 | 24,372 | 1,750,235 | (90,107) |
Cash flows from investment activities | ||||
(Investment in) redemption of securities | - | - | - | (30,952) |
(Investment in) redemption of abandonment fund | - | - | (8,255) | 3,381 |
Non-current assets held for sale | - | - | (4,104) | - |
(Purchase) sale of property, plant and equipment | - | (37) | (1,184,015) | (669,882) |
(Acquisition) of oil and gas assets | - | - | (295,054) | (9,321,469) |
Net cash (invested in) from investment activities | - | (37) | (1,491,428) | (10,018,922) |
Cash flows from financing activities | ||||
Borrowings | - | - | - | 1,467,650 |
Repayment of principal on loans | - | - | (671,637) | - |
Interest paid on loans | - | - | (67,251) | (31,143) |
Contractual charges - Leases IFRS 16 - Principal | - | - | (15,118) | (1,439) |
Contractual charges (Leases - IFRS 16) - Interest | - | - | (45,188) | (29,844) |
Funding of debentures | - | - | 1,933,711 | - |
Interest paid on debentures | - | - | (69,409) | (66,397) |
Derivative transactions | - | - | 5,039 | (41,096) |
(Decrease) Paid-up capital | 58,595 | 33,118 | 58,595 | 33,118 |
Own Company's shares (held in treasury) | (80,943) | (49,933) | (80,943) | (49,933) |
Net cash (invested in) from financing activities | (22,348) | (16,815) | 1,047,799 | 1,280,916 |
Translation adjustment | (2,030) | (1,809) | 388,089 | (257,668) |
Net increase (decrease) in cash and cash equivalents | (2,961) | 5,711 | 1,694,695 | (9,085,781) |
Cash and cash equivalents at the beginning of the period | 18,248 | 17,148 | 2,335,403 | 9,612,961 |
Cash and cash equivalents at the end of the period | 15,287 | 22,859 | 4,030,098 | 527,180 |
Net increase (decrease) in cash and cash equivalents | (2,961) | 5,711 | 1,694,695 | (9,085,781) |
See the accompanying notes to the quarterly information.
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PRIO SA published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 00:59:05 UTC.