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Auctus broker note out tonight in addition to Zeus notes earlier- ''We have increased our target price from £1.45 to £1.50 to capture some of the impact of the acquisition''
Listened to the webcast, very impressive
What is the brokers target price then
PetroTal also engages in significant local social programmes in order to help reinforce its local licence to operate. The company has a strong balance sheet, holding US$85.2m of cash (zero debt) at the end of Q1 2024, supporting ongoing CAPEX investment and returns to shareholders, with PetroTal establishing a regular annual dividend of 6.0c/share from Q1 2023, implying a 10% yield at current levels. As such, PetroTal offers investors regular drilling news flow, strong and growing production based on a material asset, significant cash flows underpinned by the variety of export routes, an increasingly established dividend, and a strong balance sheet.
On PetroTal’s Block 107 exploration asset, permitting activities are ongoing, in support of a potential farm out in due course. Overall, this is a further statement from PetroTal demonstrating the company’s significant existing production capability, higher potential on further drilling and export route availability, strong cash generation to be had from this, solid funding position that this creates, and capability to take advantage of this via operational execution. Going forward we expect more of the same – cash generation supporting both growth CAPEX and shareholder returns.
The 18H well is now approaching completion and expected onstream in mid-May.
Pilot exports via the OCP pipeline through Ecuador continue, with the potential for this to add 5mbbl/d of capacity over time. Efforts also continue to establish a new route via Yurimaguas later this year – a further potential 5mbbl/d. We await further news on these and any other new export routes, including potential greater use of Iquitos post completion of the Block 131 acquisition
'' In terms of the Q1 dividend, this is today announced at 1.5c/share (ex-dividend date of 30 May), in-line with the company’s established base dividend level. This further demonstrates management’s confidence in the forward cash generating capability of the business, and its ability to continue funding both growth CAPEX (even allowing for the increased CAPEX programme) and returns to shareholders. ''
''The erosion issues around the Bretana field site are more extensive than previously assessed meaning the cost of the remediation programme is now expected to be higher (US$15m of the increase). These issues are also expected to hinder.the demobilisation of the current drilling rig (otherwise planned for Q2 2024), meaning this will now remain with PetroTal and be used to drill an additional oil well and an additional water disposal well, in H2 2024.
while it is inconvenient to see the erosion CAPEX increased, the balance of the CAPEX revision is more of a rescheduling, bringing drilling forward. Irrespective, the new budget remains well within the company’s funding capabilities. ''
I'd rather we didn't spend a penny on riverbanks, and spent on more wells, that way when the bank collapsed and silts up the river, we can marvel at how many wells we've shut in because we can't get their production barged away.
It's not a cost, it's an investment, and I'm scratching my head trying to work out why anyone would think otherwise....
Ofc. they'll need to spend money on erosion control. Since Amazonas swallows Bretana if they don't. But suggesting it's "normal" or that it's as fruitful as drilling another 5 wells (75 million USD) is just bullocks.
If you look in the IPO or the older annual reports you'll find no mention of CAPEX related to river erosion.
#PTAL remains cheap, etc. and the numbers are great. But not every surprise is good and there's no reason to pretend the extra 15 million (equal to costs of drilling 1 well) is icing on the cake.
Rmember 3 pm presentation
Brent USD/Bbl 84.014 ⬆️
I have i3e in my pf too, re earlier post, i3e have capital costs too, have reduced their divi due to cash flow, drills halt last year etc and situated in Alberta Canada they are located in the wild fire zone that occasionally affects operations.
PTAL has risks, all stocks have risks, unlike many stocks PTAL are seriously cash generating, excellent divi with oprtion of special divi when cash exceeds $60m, well managed financially, adding growth, and no debt....a lot to like
Part of this business is generating goodwill. It's absolutely essential to operating here. The cash spent on the local environment mitigates many risks. I'm 100% behind it, plus any other initiatives to safely balance business with environment.
With respect if river erosion is not dealt with their is no river and its a vital part of the business, all businesses have 'outside' costs as it's part of business, hard to find one that doesn't, many have debt costs, etc etc
@ Darientaylor - I don't mind CAPEX when it's going to growth or sustainable higher production.
However, we're not really getting anything from the 65 - 75 million USD going to deal with river erosion in 2024 and 2025.
Up 15 million in costs or 1.6 c/share.
Lets try this again -
Dividend has not dropped, it was raised last time -
''Maintaining a return of capital program consisting of quarterly dividends at US$0.015/share and share buybacks of approximately $1.0 million/month in accordance with the Company's return of capital policy;''
''10. Dividends are assumed at the base dividend level of US$0.015/share and buybacks are assumed at $1.0 million per month''
The base dividend is USD 0.15 as clearly stated, the previous slightly higher dividend was due to extra liquidity as staed in the rns and PTAL have just bought a new producing asset as of yesterday -''Based on the Company's current liquidity exceeding USD$60 million, PetroTal confirms that a cash dividend of USD$0.02 per common share will be declared and paid in Q1 2024. ''
All stated clear;ly in previous rns for shareholders
Its the risk involved, in the environment they exist with river blockades, low water levels causing problems and other political issues, why accept a reduced divi when I can get similar or even better yields elsewhere, have a look at i3e as an example in Canada, safe as houses about to conduct another strategic asset sale and giving a yield just over 10%, with over 20,000 boepd expected this year end.
Dividend even :-)
I reckon that may be an error of judgement. Just my opinion. This looks like it's been consolidating around 47p to 48p. The future looks very bright after yesterday's and today's RNS. Dividend same as Q1 last year, but growth accelerating IMO.
Dididend has not dropped, it was raised last time -
''Maintaining a return of capital program consisting of quarterly dividends at US$0.015/share and share buybacks of approximately $1.0 million/month in accordance with the Company's return of capital policy;''
''10. Dividends are assumed at the base dividend level of US$0.015/share and buybacks are assumed at $1.0 million per month''
The bas dividend is USD 0.15, the previous slightly higher dividend was due to -''Based on the Company's current liquidity exceeding USD$60 million, PetroTal confirms that a cash dividend of USD$0.02 per common share will be declared and paid in Q1 2024. ''
Sold this morning, expecting short term turbulence.
Jeezus. the negativity arppund the divi. I mean its terrible only having a 10% return to shareholders iin the qtr.... they are accelerating drill, so more production and more revenue earlier, I dont care about the capex, its what you do when expanding a business and out of free cash flow which BTW is up by 80% on last qtr.. give you head a wobble people
They dropped the dividend by 25%, is this to support their buybacks.
They paid dividends of (US$0.02/share) on March 15 to now plan a dividend of USD$0.015. I feel this is an error of judgement, these buybacks do not support increased share prices as has been seen again and again, dropping the divi is never going to go down well particularly when they are growing cash. Buybacks really support the institutions.
I wonder what the market will say to this. Results are great (better than guided) - however the increase to CAPEX due to river erosion is not. Dividend to the low side, but same as last year and they are now ready to pay for the additional CAPEX and the new field (I guess we'll get quite some CAPEX on the new block next year). A bit disappointing to see buy backs so low (so that means I'll just hold what I have for now and not increase - dividend will go to other companies).