PetroTal Corp Sees Lower Q2 Earnings but Increases Annual Production and EBITDA Outlook

2 min read | August 09, 2024 03:31 AM EDT | By Team Kalkine Media

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PetroTal Corp Sees Lower Q2 Earnings but Increases Annual Production and EBITDA Outlook — Image source: Shutterstock

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On Thursday, PetroTal Corp (LSE:PTAL) disclosed its financial performance for the second quarter, revealing a weaker earnings report compared to the previous year. For the three months ending June 30, the Calgary-based oil and gas company, which operates primarily in Peru, reported an 8.3% increase in revenue to $103.1 million, up from $95.2 million. However, net income fell by 24%, decreasing to $35.4 million from $46.6 million in the same quarter last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) slightly decreased to $69.5 million from $70.0 million.

Production and Operational Update

PetroTal's production in the second quarter experienced a slight decline of 3.9%, averaging 18,290 barrels of oil per day (bopd), down from 19,031 bopd a year earlier. The company completed the development of its 18H and 19H wells in May and June, with average output of 5,167 and 2,278 bopd, respectively, in July. The 19H well initially produced over 8,000 bopd but has recently averaged more than 6,800 bopd over the last 30 days.

Annual Production and EBITDA Outlook

Despite the lower earnings for the second quarter, PetroTal has increased its annual oil production forecast. The company now expects yearly production to be between 16,500 and 17,500 bopd, an increase from the 14,248 bopd achieved in 2023. Additionally, the EBITDA guidance has been raised to a range of $200 million to $240 million, up from the previous forecast of $200 million.

Dividend Declaration

PetroTal also declared a quarterly dividend of $0.015 per share. This represents a 40% reduction from the $0.025 dividend paid in the same quarter of the previous year.

Looking ahead, PetroTal announced the approval of its Oleoducto de Crudos Pesados Oil Pipeline in Ecuador, which began in July. With all regulatory approvals in place, the company is now positioned to diversify its oil sales routes and enhance offtake flexibility during the dry season. Expanding additional market routes is a priority, with further updates expected in the fall of 2024.

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