PetroTal sales, production meet first-quarter forecasts

PetroTal said in an update on Thursday that sales and production in its first quarter averaged 18,347 and 18,518 barrels of oil per day respectively, marking its second-best quarter to date and aligning with guidance.

The AIM-traded firm said EBITDA and free funds flow amounted to $71.6m and $52.6m, surpassing fourth-quarter levels due to increased sales volumes realised during the quarter.

It ended the quarter with total cash of $85.2m, of which $62.5m was unrestricted, with over $93m in short-term receivables due after 31 March.

Operating cost metrics remained strong, with lifting and variable transportation costs under $7.00 per barrel in the three months ended 31 March, contributing to a net operating income margin of nearly 80%.

Capital expenditures totalled $30.4m in the quarter, primarily directed towards drilling well 17H and ongoing infrastructure projects, including water handling upgrades.

One well was successfully drilled and two new oil wells were completed during the quarter, meeting company expectations.

Well 17H averaged around 4,050 barrels of oil per day for April.

First-quarter net income amounted to $47.6m, or five US cents per share, while total dividends of two cents per share were paid, and 5.2 million shares were repurchased, representing $21.5m in total capital returned to shareholders, or about 4% of its 31 March market capitalisation.

“The first quarter of 2024 was an exceptional and near record quarter for PetroTal,” said president and chief executive officer Manuel Pablo Zuniga-Pflucker.

“Cash flow was stronger than projected in previously announced guidance, allowing the Company some additional flexibility to plan for upcoming heavier capex quarters likely to be seen under dry season conditions.

“As in previous years, the Company will reassess its guidance once the first half year results are finalised.”

Zuniga-Pflucker said that in addition to the strong quarterly results, the company was “extremely excited” to execute the purchase and sale agreement for the first acquisition in its history.

“This transaction is highly strategic from an operational, financial, and social perspective.

“We look forward to incorporating it into our story when the transaction closes.”

At 1234 BST, shares in PetroTal Corporation were down 0.62% at 48p.

Reporting by Josh White for Sharecast.com.