(Image: Prio)
Bradesco BBI continues to see a prio (prio3) as the most attractive company in its oil coverage regarding Free cash flow income to shareholder (FCFE).
Nevertheless, the bank reduced this week the target price of the stock to $ 49 amid a review of its estimates. The changes reflect the Fall in oil prices and adjustments to the production curves.
Among the main points of the review, Bradesco BBI has postponed the estimated production estimate in the Wahoo field from September 2025 to January 2026. In addition, the bank revised the friar’s exhaustion rate, which became 20% in the short term, between 2025 and 2027. The Albacora East drilling campaign was also postponed from 2026 to 2027.
On the other hand, three new friar wells were added, with production potential of five thousand barrels per day (BPD) each, from 2026.
The analysis also considered an increase in operating cost in pilgrim, now estimated at US $ 220 million to 2025, above the previous $ 180 million, given that the Equinor operator still works in improvements.
Another relevant adjustment was the reduction of the discount applied to the price of Pio’s oil in relation to Brent, reflecting a more positive scenario for heavy oil.
As a consequence of these changes, the bank now estimates that the production of the prio in 2025 will be 111,000 barrels of oil equivalent per day (Boepd), a drop in relation to the estimated 128,000 boepds. For 2026, the new projection is 150 thousand Boepd, against the 161,000 planned before.
FCFE income follow at 12% to 2025 and 28% for 2026, the largest among all companies accompanied by the bank in the sector, analysts said.
Projections for a prio in 2025
Bradesco BBI now projects to a priority a net revenue of US $ 2.526 billion by 2025, a 22.4% drop from the previous estimate of US $ 3.255 billion.
Adjusted EBITDA has been reviewed to US $ 1.658 billion, 29.7% below the previous value. The EBITDA margin fell from 72.4% to 65.6%.
Estimated net profit for the company went from $ 1.177 billion to $ 584 million, representing a 50.4%drop.
Source: Moneytimes
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