PetroTal Corp on Thursday reported weaker second-quarter earnings but lifted its yearly outlook.
In the three months to June 30, the Calgary, Canada-based oil and gas developer focused on Peru said revenue in the quarter rose 8.3% to $103.1 million, from $95.2 million.
Net income dropped 24% to $35.4 million from $46.6 million. Earnings before interest, taxes, depreciation, and amortization were $69.5 million, down slightly from $70.0 million.
Chief Executive Officer Manuel Zuniga-Pflucker commented: ‘Our [second quarter] 2024 operating and financial results were robust and [third quarter] and [fourth quarter] are now underpinned by strong drilling results this quarter.’
Production in the second-quarter edged down 3.9% to an average of 18,290 barrels of oil per day from 19,031 a year prior.
The company finished the development of its 18H and 19H wells in May and June, which averaged output of 5,167 and 2,278 bopd in July respectively.
‘The 19H well was initially producing in excess of 8,000 bopd despite being designed with a shorter horizontal section compared to previous drills and has now averaged over 6,800 bopd over the last 30 days,’ Zuniga-Pflucker commented.
It expects yearly oil production between 16,500 to 17,500 bopd, a would-be increase from 14,248 bopd in 2023.
It has raised its Ebitda guidance to between $200 million and $240 million. It had previously forecast Ebitda of $200 million.
Further, the company declared a quarterly dividend of $0.015. It represents a 40% decrease from the $0.025 cents dividend it paid a year ago.
Looking ahead, PetroTal noted the approval of its Oleoducto de Crudos Pesados Oil Pipeline in Ecuador which commenced in July.
‘Having completed all the regulatory approvals, the company is now in a position to further diversify its oil sales routes and to allow for offtake optionality during the dry season. Activating additional routes to market is a priority for the company and we look forward to sending further updates in the fall of 2024,’
PetroTal shares closed up 1.7% at 39.75 pence each in London on Thursday.
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