PetroTal upbeat after solid full-year results
By Josh White
Date: Thursday 20 Mar 2025
(Sharecast News) - PetroTal reported a strong set of operational and financial results for 2024 on Thursday, with production exceeding guidance and a significant return of capital to shareholders.
The AIM-traded company said it achieved average daily production of 17,785 barrels of oil per day, a 25% increase from the prior year and slightly above its guidance range.
Fourth-quarter production averaged 19,142 daily barrels, boosted by volumes from Block 131, which PetroTal acquired in late November.
Production had continued to rise in early 2025, averaging about 23,200 barrels per day year-to-date.
PetroTal said it generated full-year EBITDA of $237m, near the upper end of its $200m to $240m guidance range.
In the fourth quarter, EBITDA reached $40.2m, equating to $22.86 per barrel.
Development capital expenditure totalled $163m for the year, within the expected range, while annual free funds flow stood at $74.1m before shareholder distributions.
The company said it had strengthened its financial position, increasing available cash to $103m at year-end, up from $91m a year earlier.
PetroTal said it returned about $65m to shareholders in 2024 through dividends and share buybacks, exceeding the $62m returned in 2023.
That included total dividend payments of six cents per share and the repurchase of 11.3 million common shares.
On 14 March, it distributed a dividend of 1.5 cents per share for the fourth quarter, marking its eighth consecutive quarterly payout and bringing total capital returned under its dividend programme to $116m.
Operationally, PetroTal said it completed seven new oil wells during the year.
Six of the wells produced over two million barrels of oil and generated around $85m in net operating income, delivering a full return on investment by year-end.
With strong production momentum and a continued focus on capital efficiency, PetroTal said it was well-positioned for growth in 2025 while maintaining its commitment to shareholder returns.
"PetroTal reported strong financial and operational results in 2024, increasing our production by an average of 25% over 2023, while returning more than $65m to shareholders through dividends and share buybacks," said president and chief executive officer Manuel Pablo Zuniga-Pflucker.
"The company also successfully managed a period of record low river levels during the dry season, on our way to exceeding annual production guidance.
"2025 is off to an excellent start, with the results of our development drilling campaign and facility investments supporting year-to-date average production of more than 23,000 barrels of oil per day."
Zuniga-Pflucker said the company was also excited to start development on its new asset at the Los Angeles field, along with the greater Block 131 region, with a new drilling rig expected to arrive around mid-year.
"Over the past eight months, PetroTal has been actively hedging its 2025 production volumes and has no long-term debt or significant drilling commitments.
"We are committed to our ongoing capital programme which prioritises a material dividend in tandem with strategic initiatives that include Block 131 development and the erosion control project."
At 1149 GMT, shares in PetroTal were up 0.27% at 36.6p.
Reporting by Josh White for Sharecast.com.
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