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(Alliance News) - PetroTal Corp on Friday reported a reduction in earnings for the third quarter of 2020 due to challenging conditions but said it believes it has turned a corner.
Shares in the Peru-focused oil and gas development and production firm were trading 1.4% lower at 7.30 pence each on Friday afternoon in London.
For the three months ended September 30, PetroTal posted revenue of USD7.6 million, down 22% from USD9.8 million recorded in the second quarter. Net income was USD3.2 million, down significantly from USD16.0 million.
The company blamed the decline in revenue on lower oil production as a result of social unrest. The Bretana oil field in Peru shut down in August, after anti-government protests culminated in a violent confrontation between protestors and the police, leaving three protesters dead. Peruvian indigenous people angry over the pandemic and armed with spears had assaulted a settlement for oil workers.
Average production for the three months 2,444 barrels of oil per day, down from 4,185 barrels of oil per day in the second quarter due to a shut-down of PetroTal's oil-field operations.
Operating costs were USD2.5 million, up from USD2.4 million the previous quarter. Cash held by PetroTal as at September 30 was USD9.8 million, down from USD20.4 million on June 30.
Revenue for the nine months ended September 30 was USD59.2 million, up from USD32.3 million. Net loss was USD12.2 million, swinging from a profit of USD1.9 million the year prior. Average production was 5,426 barrels of oil per day, up from 2,905 the year prior. Average brent oil price was USD42.69 per barrel, down from USD64.67 last year.
Looking ahead, PetroTal Chief Executive Manuel Zuniga-Pflucker said: "Whilst the last few months have been challenging, from both a Covid-19 and a social unrest perspective, we believe we have now turned the corner. Although we continue to restrict current production to 5,000 barrels of oil per day, in order to manage our inventory levels, we are confident that we can increase production back to 11,500 bopd once the northern oil pipeline reopens."
Earlier this week, Peru's 76-year-old new president Francisco Sagasti was sworn at a special session of Congress, tasked with resolving the South American country's crippling political crisis.
Sagasti, from the centrist Morado party, will serve as interim president until the end of July 2021, completing the mandate of Martin Vizcarra, whose impeachment by Congress set off a snowballing crisis. His immediate predecessor, former Congress speaker Manuel Merino, was forced to resign Sunday after days of street protests culminated the day before in the death of two people.
By Ife Taiwo; ifetaiwo@alliancenews.com
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