5th Aug 2026 10:07
(Alliance News) - Shares in Gran Tierra Energy Inc were on the rise on Wednesday after announcing a swing to quarterly net income and an agreement to sell its business in Colombia and Ecuador to the Indonesian state oil company.
Gran Tierra shares were up 19% to 610.50 pence early Wednesday in London and have risen 88% over the past 12 months from 325.00p. The company has a market capitalisation of GBP318.1 million.
The company expects to receive total net cash proceeds from the disposal of USD315 million. Gran Tierra is selling its Colombia and Ecuador business, representing all of its assets in South America, to Etablissements Maurel & Prom SA for an enterprise value of USD1.33 billion including debt.
Maurel & Prom is a Paris-listed indirect subsidiary of PT Pertamina. It will assume all of the debt of the Gran Tierra business being acquired and pay Gran Tierra USD250 million in cash on closing, expected around December 31, plus USD65 million within a year of that date.
Gran Tierra said it will return "a portion" of the net cash proceeds to shareholders through a share buyback programme, with the balance retained to fund the company's work programmes in Canada and Azerbaijan.
The purchased business contributed about 29,000 barrels of oil per day to Gran Tierra's working interest production before royalties in the first half of 2026.
In its results for the second quarter, also released on Wednesday, Gran Tierra said working interest production averaged 41,501 barrels of oil equivalent per day, down 9% from the first quarter and 12% from a year before. The annual decline in production was due to lower production in Colombia and the sale of its Simonette and Lodgepole assets in Canada, which was effective on January 1, the company said.
Gran Tierra swung to USD24.9 million in net income in the second quarter from a net loss of USD119.2 million in the first quarter and a USD12.7 million loss a year before. Adjusted earnings before interest, tax, depreciation and amortisation was USD85.1 million in the recent three months, up from USD73.9 million in the first quarter and USD77.0 million a year before.
Free cash flow was USD6.0 million in the second quarter, swung from USD2.5 million in outflow in the first quarter and USD2.7 million in inflow a year before. The company had USD479 million in net debt on June 30
By Tom Waite, Alliance News editor
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