PetroTal Share News (PTAL)

(Sharecast News) - PetroTal reported record quarterly oil production and sales of 23,281 and 23,286 barrels per day, respectively, for the first quarter of 2025 on Monday, driving adjusted EBITDA of $71.9m and net income of $30.9m.

The AIM-traded firm said free funds flow reached $48.2m, marking the company's second-highest result to date, while capital expenditures declined significantly to $23.6m following the completion of its Bretana drilling campaign in January.

It said it ended the period with total cash of $113.6m, flat quarter-on-quarter but $28m higher than the same period last year.

PetroTal also arranged a new term loan facility of up to $65m with Peruvian banks and saw the mark-to-market value of its production hedges rise to $14.2m as of early May.

A quarterly dividend of 1.5 cents per share was declared, payable on 13 June.

"PetroTal's first quarter results reflect a strong contribution from our 2024 development drilling programme," said PetroTal president and chief executive officer Manuel Pablo Zuniga-Pflucker.

"I am proud of our entire team for delivering another record quarter of production.

"We have successfully been running near 100% of our transportation and facility capacity and are taking full advantage of high river levels during the ongoing rainy season."

Zuniga-Pflucker said the company's financial results remained strong as well, with PetroTal showing healthy improvements in quarterly EBITDA and free cash flow.

"Notwithstanding the recent decline in oil pricing, we are continuing with preparations for some important development projects over the remainder of 2025, including erosion control.

"PetroTal has hedges on approximately 40% of its remaining 2025 production volumes and remains well-capitalized to execute its development programme.

"I would like to conclude by assuring investors that PetroTal is prepared to respond to declines in oil pricing by reducing capex and opex as necessary."

Balance sheet flexibility and peer leading returns on investment had long been key pillars of the investment thesis for PetroTal, Manuel Pablo Zuniga-Pflucker explained.

"If oil prices remain low as we get closer to resuming our drilling programme in the third quarter of 2025, we may consider deferring or cancelling planned activity to better align production growth with a supportive commodity price environment and maximize return on investment for our shareholders.

"We will update market guidance, as required, at the appropriate time should such a decision be taken."

At 1150 BST, shares in PetroTal were up 8.94% at 33.5p.

Reporting by Josh White for Sharecast.com.