Research Update: Prio S.A. Outlook Revised To Positive On Announced Aquisition; Ratings Affirmed

Prio S.A. recently announced the acquisition of Sinochem Petroleum Netherlands Cooperatief U.A., which will increase Prio's 2025 production by about 32% and reserves by about 20%. Combined with our expectation of higher production from the company's current assets in 2025, we expect Prio to produce around 160,000 barrels of oil per day in 2025--significantly higher than its about 90,000 per day in 2024. As a result, we revised our outlook on Prio to positive from stable. At the same time, we affirmed our 'BB-' and 'brAA+' global scale and national scale long-term issuer credit ratings and our 'brA-1+' national scale short-term issuer rating on the company, our 'BB' issue-level rating on its senior secured notes, and our 'brAA+' issue-level rating

...- Prio S.A. recently announced the acquisition of Sinochem Petroleum Netherlands Cooperatief U.A., which will increase Prio's 2025 production by about 32% and reserves by about 20%. - Combined with our expectation of higher production from the company's current assets in 2025, we expect Prio to produce around 160,000 barrels of oil per day in 2025--significantly higher than its about 90,000 per day in 2024. - As a result, we revised our outlook on Prio to positive from stable. At the same time, we affirmed our '##-' and 'brAA+' global scale and national scale long-term issuer credit ratings and our 'brA-1+' national scale short-term issuer rating on the company, our '##' issue-level rating on its senior secured notes, and our 'brAA+' issue-level rating on its senior unsecured debentures. - The positive outlook indicates that we could raise the ratings in the next 12 months if the company increases production while maintaining controlled leverage....

Research Update