Brava Energia ("Brava" or "Company") presents the results for the third quarter of 2024 ("3Q24"). The financial and operational performance described in financial statements and explanatory notes includes the consolidated results of 3R and Enauta since August 1, 2024, and therefore reflects three months of 3R results and two months of Enauta results. For comparative purposes, we will present proforma quarterly results, combining the results of both companies from 1Q23 to 3Q24, thus including the results reported by Enauta for the month of July 2024.
The proforma results are based on available information attributable to the business combination and are intended to illustrate the impact of this combination on the Company's historical financial and operating information. There is no assurance from independent auditors or the Company that the transaction result would have been as presented had it been completed on January 1, 2023, nor were the operational quantitative data part of the auditors' review scope.
Unless otherwise indicated, the amounts are presented on a consolidated basis and in Brazilian Reais (R$), in accordance with accounting practices adopted in Brazil (CPC) and the International Financial Reporting Standards (IFRS).
3Q24 HIGHLIGHTS
Business combination: Completion of Enauta and Maha incorporation by 3R, consolidating one of the largest and most integrated independent oil and gas companies in Latin America
Partnership in the Atlanta and Oliva Fields: Completion of the transaction with Westlawn for the sale of 20% in the BS-4 Concession, with a payment of R$ 1,287 million or US$ 234 million to Brava (total transaction value was US$309 million for 20%)
Rating upgrade with positive outlook: by Fitch, to AA- for long-term national rating, with a stable outlook, and by S&P, to brAA- on the national scale, with a positive outlook
First combined financial results
Proforma consolidated net revenue of R$ 2,193 million in 3Q24
Lifting cost stable at US$ 20.0/boe in 3Q24: onshore lifting cost remained stable at US$ 20.4/boe, while the offshore segment registered US$ 19.4/boe in 3Q24
Excluding chartering costs, the offshore lifting cost would be US$ 13.4/boe, reducing the Company's integrated lifting cost to US$ 17.9/boe in 3Q24
Proforma Adjusted EBITDA of R$727.4 million in 3Q24: +7.7% compared to 3Q23 (YoY)
Proforma Adjusted EBITDA margin of 33.2% (+5.7 p.p. YoY) in 3Q24. In the Upstream segment, the margin reached 48.6% in 3Q24 (+2.8 p.p. YoY)
Capital structure with high liquidity: strong cash position of US$ 1.2 billion
First stage for unlocking synergies completed in 3Q24:
Optimization of operational and corporate teams
Prepayment of higher-cost credit lines
Beginning of corporate restructuring to enable tax and credit optimizations
Beginning of the amortization of the goodwill arising from the transaction
Continuous efforts to recover asset integrity
3Q24 production averaged 51.7 thousand boe/day, +5.6% YoY. Considering the 23% interest in Parque das Conchas, quarterly production averaged 58.2 thousand boe/day
Completion of the flotel campaign and workover of well PPT-50 in Papa-Terra. Maintenance campaign focused on unit integrity, aiming for greater resilience in production in the medium and long term
Significant increase in steam injection capacity, with initial results in the Potiguar Basin (Estreito and Alto do Rodrigues fields)
Continuity drilling campaigns in the Potiguar and Recôncavo Complexes
IBAMA license issued for the FPSO Atlanta in September 2024
