Brava Energia Sa · BMFBOVESPA:BRAV3
Brava Energia Sa — Q3 2024 Earnings Presentation
27 slides from Brava Energia Sa's earnings presentation, Nov 13, 2024
Slide 1: 3Q24 Financial & Commercial Highlights
BRAV3 | Results Presentation | 3Q24 3Q24 Financial & Commercial Highlights
Slide 2: Disclaimers
Disclaimers This presentation may contain forward-looking statements about future events that are not based on historical facts and are not guarantees of future results. These forward-looking statements only reflect the Company's current views and estimates of future economic circumstances, industry
Slide 3: 3Q24 in numbers
3Q24 in numbers R$ 727 MM 58 kboe/d US$ 1.2 bi Proforma adjusted EBITDA in 3Q24 average daily production in 3Q24¹ 81% Oil Cash position in 3Q24² R$ 3.0 bi Adjusted proforma EBITDA 9M24 Strategy Milestones 3R + Enauta and Maha Holding Closing of Atlanta FPSO ATLANTA ✓ IBAMA Operation License incorpor
Slide 4: Diversified & Integrated Portfolio
Diversified & Integrated Portfolio 500 + million barrels of proved reserves (1P) Onshore 20% of the concessions ≈ 90% of the production and Ebitda growth 1 Potiguar Independence from third parties: main onshore assets are connected to Brava 2 Recôncavo mid & downstream infrastructure (Clara Camarão
Slide 5: Operations Highlights
Operations Highlights
Slide 6: Proforma historical total production | Cluster breakdown
Proforma historical total production | Cluster breakdown ✓ 3Q24 figures confirm the onshore segment resilience on the long term; ✓ The result was impacted by maintenance stops in Papa-Terra and disconnection of wells from FPSO Petrojarl during 3Q24; ✓ 1Q24 figures attest the portfolio's potential ev
Slide 7: Offshore
Offshore Atlanta Papa-Terra Peroá Parque das Conchas Manati Pescada
Slide 8: Papa-Terra Update | Maintenance program advancing
Papa-Terra Update | Maintenance program advancing Repair on salvage Maintenance timeline systems concluded and POB increase approved by ANP SPA First ESP Pumps Start of the Flotel Campaign Production SPA planning of the Signing acquisition restart forecast Closing flotel project Jul/21 Ago/22 Dez/22
Slide 9: FPSO Atlanta: expected first oil for the coming weeks
FPSO Atlanta: expected first oil for the coming weeks ✓ Connection of #06 and #07 new wells: concluded in Jul/24 ✓ IBAMA Operating License: granted in Sep/24 (FPSO Atlanta) Update for FPSO Atlanta 1st Oil ✓ MPPs (Multiphase Pumping Systems): installation concluded ✓ Last ANP conditions will be concl
Slide 10: Other updates on Offshore projects
Other updates on Offshore projects ➢ BC-10 (Parque das Conchas) ✓ ANP approval for the transfer of 23% of the asset is in final stage; ✓ Effective date for cash generation since Jul/23 (with adjustment in the balance payable); ✓ Average production in 2024 (@ 23%) was 6.2 kboe/day. ➢ Manati: producti
Slide 11: Onshore
Onshore Potiguar Recôncavo Resultados 3T24
Slide 12: Onshore: resilience
Onshore: resilience ➢ Onshore well activities in 3Q24: ✓ 108 workovers & 15 drillings with 21 rigs on site; ✓ Focus on improve uptime while reducing the number of onshore rigs in use in 2025; ✓ Drilling campaign ongoing on Serra Field ✓ The Company was able to offset the higher decline rate due to t
Slide 13: Onshore: growing steam injection capacity
Onshore: growing steam injection capacity ➢ Steam project in Potiguar (Estreito and Alto do Rodrigues fields) ✓ Significant increase in steam injection: from ~1800 to ~4000 ton/d since Jun/23; ✓ 9 steam generators acquired: 4 on site and all to be ready until Aug/25; ✓ Steam injection to reach 7000/
Slide 14: 3Q24 Commercial & Synergies Highlights
3Q24 Commercial & Synergies Highlights
Slide 15: 3Q24 Trading | Strong monetization
3Q24 Trading | Strong monetization ✓ New trading contract for Atlanta expected for 4Q24 ✓ Potential co-loading opportunities between Atlanta, Conchas and Guamaré low-sulphur fuel oil ✓ Natural gas contract diversification and integration with power management exposure Crude Spreads Gas Spreads Avera
Slide 16: Pace of merger synergies in-line with plan
Pace of merger synergies in-line with plan 3Q24 Next 12 months Capital Allocation ❖ Rating upgrade ❖ Corporate simplification (incorporate other 3 subsidiaries) ❖ Restructuring insurance and decommission guarantees ❖ Liability management (pre-payment of Potiguar bridge US$500m) ❖ Corporate simplific
Slide 17: 3Q24 Financial Highlights
3Q24 Financial ‘Highlights A
Slide 18: 3Q24 Net Revenues
3Q24 Net Revenues Quarter proforma historical results (R$MM) Macro Aspects Enauta 3R 3.129 Brent Average Avg. FX | BRL/US$ 2.824 Price (US$) 2.456 554 2.276 86,7 84,9 816 2.194 84,3 83,2 5,54 96 80,3 5,21 4,88 4,96 4,95 427 423 2.575 2.360 1.849 2.008 1.771 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q
Slide 19: 3Q24 Upstream Net Revenues | Onshore resilience on display
3Q24 Upstream Net Revenues | Onshore resilience on display Quarter proforma historical results ✓ Onshore resilience confirms one of the strengths of Brava: Onshore vs. Offshore balanced portfolio between onshore and offshore that can (R$MM) support moments of high volatility; ✓ Offshore Assets + Pot
Slide 20: 3Q24 Consolidated Adjusted EBITDA
3Q24 Consolidated Adjusted EBITDA ✓ 3Q24 recorded an upstream adjusted EBITDA margin of 48,6%, improving with a higher participation of the offshore segment, especially Atlanta; ✓ Stable contribution from Mid & Downstream: Brava has been able to maintain margins and navigate the common volatile scen
Slide 21: Lifting Cost | Stable while the path to increase efficiency in 2025 is being built
Lifting Cost | Stable while the path to increase efficiency in 2025 is being built Brava Lifting Cost (US$ / boe ) Atlanta Charter cost Lifting cost improved reflecting the positive impact from offshore 23,5 assets and dilution from Atlanta 21,5 22,6 1,6 20,0 2,7 18,5 1,9 ➢ Onshore: 2,1 2,4 The segm
Slide 22: Capex 2024
Capex 2024 Quarter Breakdown Annual Breakdown (US$ MM) (US$ MM) 730 ENAUTA 680 3R 292 283 332 325 204 187 156 178 157 40 102 63 355 398 165 114 126 85 92 3Q23 4Q23 1Q24 2Q24 3Q24 2023 YTD 2024 YTD Capex breakdown Capex breakdown Upstream Capex per activity in 3Q24 (%) per segment 3Q24 (%) breakdown
Slide 23: Capital Structure
Capital Structure Indebtedness | end of 3Q24 Debt Amortization Profile (US$ MM) (US$ MM) 734 BRL Instruments 2.561 USD Instruments 1.233 71 Portfolio Obligations 538 3 323 1.651 395 377 1.328 532 338 90 1.166 285 3 18 208 536 96 161 254 373 119 46 20 90 89 14 64 71 1 54 142 131 70 65 89 14 24 Gross
Slide 24: Cash Flow & Hedge
Cash Flow & Hedge Cash Flow | 3Q24 10.074 (108) (447) (25) 167 (189) (93) 1,287 (844) 9.489 Treasury Shares Cash and cash Operational cash Financial Amortization Dividends Capex Westlawn Others Cash and cash equivalent 2Q24¹ flow (including Result (sale of 20% of equivalent 3Q24¹ hedge) Atlanta) Hed
Slide 25: Final Remarks
BRAVA Final Remarks
Slide 26: Management Top Priorities
Management Top Priorities Short term Mid Term ❖ Resume Papa-Terra ❖ Deliver on merger synergies production ❖ Focus on 20% of the upstream ❖ Start FPSO Atlanta production concessions that will support 90% of production and ❖ Corporate optimization to EBITDA growth start to unlock synergies in 4Q24 on
Slide 27: 3Q24 Q&A
3Q24 Q&A 3Q24 Financial & Commercial Highlights