13th Nov 2025 11:04
(Alliance News) - PetroTal Corp shares plunged on Thursday as it suspended its quarterly dividend due to project delays after it reported a lower net income for the third quarter.
Shares in the Calgary, Alberta-based oil producer in Peru were down 33% at 24.50 pence on Thursday morning in London.
Chief Executive Officer Manuel Pablo Zuniga-Pflucker said the firm is facing "a number of challenges" as it finalises its 2026 budget.
"Most notably, we continue to experience delays in the resumption of our development drilling program, and as a result our production volumes are expected to decline throughout [the first half of 2026]. The updated production forecast, combined with weaker oil prices, is limiting our ability to fund both an adequate development program and return capital to shareholders," said CEO Zuniga-Pflucker.
"As a significant shareholder myself, I would like to assure investors that this decision was not taken lightly; we are evaluating all options to preserve liquidity, as we work to resume our development drilling program as quickly as possible. PetroTal intends to provide more detailed guidance in January 2026, once the development program and associated production forecast are finalised."
PetroTal said the best-case timing to resume drilling at Bretana is mid-year 2026. It said continued development of the site is contingent on facility expansion, particularly water handling capacity.
The firm said it will be challenged to fund both development drilling and an expansion of water handling capacity while returning capital to shareholders.
The board has a "long-standing directive" that it must maintain a minimum available cash balance of USD60 million, PetroTal noted.
PetroTal said average production in the three months to the end of September was 21% higher at 18,414 barrels of oil per day from 15,203 bopd a year ago. It was down 12% from 21,039 bopd in the previous quarter.
Average sales were up 22% at 18,028 bopd from 14,760 bopd a year ago, but 12% lower than 20,578 bopd in the second quarter.
The average Brent price fell 14% to USD66.96 per barrel in the third quarter from USD77.74 a year prior. It had improved 2.2% from USD65.55 in the previous quarter.
Oil revenue declined 8.9% to USD71.9 million from USD78.9 million a year ago. Net operating income dropped 22% to USD44.5 million in the third quarter from USD57.2 million.
Net income fell 50% to USD3.6 million from USD7.2 million a year before. Net income was down 79% from USD17.5 million in the previous quarter.
"Our production increased by 21% compared to the same period last year, supported by healthy river exports, as we continued to benefit from the results of our 2024 development drilling program. While we experienced some unscheduled downtime that temporarily impacted production capacity, our operational teams responded quickly to restore output and sustain our sales volumes," said CEO Zuniga-Pflucker.
Looking ahead, PetroTal said it will continue to refine its development plan.
The company ended the third quater with a total cash position of USD141.5 million, up 6.3% from USD133.1 million at the end of the third quarter of 2024.
Available cash at the end of September was USD108.8 million, down 10% from USD121.3 million at the same time last year.
By Michael Hennessey, Alliance News reporter
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