Enauta announces 2nd quarter results, with net profit of R$ 635.7 million – the highest in the company’s history

The company remains capitalized, with a cash balance of R$ 2 billion, in a favorable time for acquisitions

 

We released our results for the second quarter of 2021, highlighting a record net income of R$635.7 million. The recording of the fair value of the additional 50% stake in the Atlanta Field contributed with R$542.1 million, due to the conclusion of the assignment process. We also remain with a solid cash position that reached R$2 billion at the end of 2Q21.

 

Total boe production in the quarter was 1.56 million, with an average daily production of 17.2 thousand boe. The projection for oil production in the Atlanta Field went from 7,000 to 10,000 barrels of oil per day in 2021, with a positive or negative variation margin of 10%, with the incorporation of the additional 50% stake and the change in the Atlanta Field production projection for the current year.

 

We also highlight the optimization of operational costs in Atlanta, with a reduction of US$ 3 per barrel in the second quarter, compared to the first quarter, a 26% reduction in CO2e emissions (scope 3) in the quarter, compared to the same period last year, the improvement of operational efficiency in the Atlanta Field, and the optimization of logistics. The emissions intensity is 15.2 kgCO2e/boe for scope 1 and 2 in 2020, 25% lower than the average of the Oil and Gas Climate Initiative (OGCI) companies. It is also worth noting that there were no accidents with lost time in Enauta’s operations in 2021.

 

The end of the second quarter of 2021 was a milestone for Enauta. We signed an amendment to the concession contract for Block BS-4, where the Atlanta Field is located. With this, we assumed the totality of the asset’s results, increasing our oil production by another 50%. Currently, we have two wells in Atlanta and the third well will return to production in August. We will gain important reinforcement in cash generation, benefited by the strong demand for low-sulfur oil produced in Atlanta. Furthermore, the bidding process for the processing unit (FPSO) and other equipment for the Definitive System is going on according to plan, which will allow for production expansion with the start-up of the Field’s Definitive System. This month, we started the bidding process for the items and services required to drill the fourth well, which should take place in the second half of 2022.

 

We would also like to highlight the advances made in the strategic agenda, which includes the aforementioned efficiency gains and optimization of resources, accompanied by significant achievements in the ESG area. In governance, for example, we have 40% female leadership in our staff, a percentage higher than the industry average. These results show that our current transformation process is firmly committed to advances in initiatives that ensure the Company’s sustainability.

 

 

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