- Gran Tierra Energy (GTE) has posted its second quarter production and financial results, following an historically difficult few months for the industry
- The company went from a net profit of approximately C$51,000 in 2019’s June quarter to a net loss of $491,470 this year
- Further, production fell 32 per cent for the quarter, down to 20,165 barrels of oil per day from 35,340 barrels per day last year
- The company attributed the drop in profits and production to the onset of the COVID-19 pandemic and the resulting oil price crash
- Gran Tierra Energy (GTE) is down 4.71 per cent and is trading at C$0.40 per share
Gran Tierra Energy (GTE) has posted its second quarter production and financial results, following an historically difficult few months for the industry.
The company’s production for the quarter hovered around 20,165 barrels of oil per day, a 32 per cent reduction on the previous quarter’s average. The drop was matched by greater losses, moving from a profit of approximately $51,000 in 2019’s June quarter to a net loss of approximately $491,470 this quarter.
Last year the company soil a barrel at an average of approximately C$90.59 per barrel, whereas this year the company sold a barrel at an average of approximately $44.26 per share.
The company stated that the impact of covid-19 and the related crash in world oil prices meant the company had to take decisive actions to protect its balance sheet and liquidity.
As a result Gran Tierra shut-in production, deferred development drilling, closed unproductive wells and delayed mechanical maintenance work.
Meanwhile, the company also had to suspend production at its facilities in the Putumayo region of Colombia due to a blockade by local farmers.
However, it would appear that has had significantly less of an effect on the company’s bottom line that it may normally have had, as shutting in production was expected due to the pandemic.
President and CEO of Gran Tierra, Gary Guidry commented on the company’s steps, following the oil price crash.
“We swiftly reduced our 2020 capital program and implemented cost saving initiates throughout the company.
“The team has made significant progress on lowering operating and general and administrative costs, and done a great job managing the crisis on all fronts.
“We believe we are well-positioned to withstand the current volatile environment with our last based decline, conventional oil asset base and the operational control for capital allocation and timing, while maintaining a low cost structure,” he said.
Gran Tierra Energy (GTE) is down 4.7 per cent and is trading at $0.40 per share at 9:50 am EDT.