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Highlights
- IPC achieves 45,000 boepd production in Q3 2024, meeting guidance
- 6% reduction in outstanding shares under the NCIB program
- Blackrod Phase 1 development on track for first oil in late 2026
International Petroleum Corporation (IPC) (TSX, Nasdaq Stockholm: IPCO), a leading oil and gas company with operations in Canada, Malaysia, and the Netherlands, has released its financial and operational results for the third quarter and nine months ended September 30, 2024. The company delivered another solid quarter, with production in line with expectations and continued progress on key development projects.
IPC achieved an average net production of approximately 45,000 barrels of oil equivalent per day (boepd) during Q3 2024, meeting the company’s production guidance. This included a production mix of 49% heavy crude oil, 17% light and medium crude oil, and 34% natural gas. Despite planned maintenance shutdowns at both the Onion Lake Thermal (OLT) operation in Canada and the Bertam field in Malaysia, the company successfully met its production targets.
William Lundin, President and CEO of IPC, commented, “We are pleased to announce another positive quarter of operational performance. IPC achieved average net daily production during the third quarter of 45,000 boepd, following planned maintenance shutdowns during the quarter. We also continue to purchase IPC common shares under the normal course issuer bid (NCIB), and we are excited to report on the progress made at our Blackrod Phase 1 development project in Canada.”
IPC continues to make significant strides with its Blackrod Phase 1 project in Canada, which remains on track and within budget. This development is expected to be a major growth driver for the company, with first oil forecasted for late 2026. The Blackrod project is a key part of IPC’s long-term growth strategy, and the company is committed to its successful execution. The project’s progress is a testament to IPC’s ability to advance large-scale development in a disciplined and cost-efficient manner.
IPC has been actively buying back shares under its Normal Course Issuer Bid (NCIB), which aims to reduce the number of outstanding common shares and increase shareholder value. During Q3 2024, IPC purchased and cancelled approximately 2.6 million shares, bringing the total share repurchases since December 2023 to over 6%. The company plans to seek approval from the Toronto Stock Exchange (TSX) to renew the NCIB in December 2024, further reinforcing its commitment to delivering value to shareholders.
IPC’s financial results for Q3 2024 reflected strong operational performance. The company reported operating costs of USD 17.9 per barrel of oil equivalent (boe), below the company’s guidance. Operating cash flow (OCF) for the quarter was USD 73 million, and EBITDA was USD 68 million, both in line with guidance. Capital and decommissioning expenditures for Q3 2024 totaled USD 102 million, also consistent with expectations.
The company’s free cash flow (FCF) for Q3 2024 amounted to negative USD 38 million, primarily due to funding for the Blackrod Phase 1 project. However, IPC remains in a solid financial position, with gross cash of USD 299 million and net debt of USD 157 million as of September 30, 2024. The company reported a net result of USD 23 million for the quarter.
IPC remains focused on disciplined growth, cost management, and shareholder returns. With strong production performance in Q3 2024, continued progress at Blackrod, and a solid financial foundation, IPC is well-positioned for future growth. The company’s ability to generate cash flow while investing in key projects, such as Blackrod, reinforces its long-term value creation potential.
