In a disappointing turn of events, Frontera Energy, a Canadian energy company, has experienced a significant drop in its shares and oil and gas sales during the recent quarter. The company’s shares plummeted by 26% to C$8.31 in morning trading, resulting in a year-to-date decrease of 33%.
Frontera reported a decline in third-quarter oil and gas sales, net of purchases, which amounted to $254.8 million. This figure is notably lower than the $221.22 million reported in the previous quarter and the $304.9 million during the same period last year.
Moreover, Frontera’s production levels also suffered a setback. In the latest quarter, the company’s average daily production dropped to 40,802 barrels of oil equivalent compared to 42,049 barrels the previous quarter and 41,033 barrels a year ago. Frontera owns various exploration and production assets in Colombia, Ecuador, and Guyana, along with pipeline and port facilities in Colombia.
Despite the decline in net income from the second quarter, Frontera managed to achieve a third-quarter profit of $32.6 million or 37 cents per share. This is a significant improvement from the $26.9 million loss (30 cents per share) reported during the same period last year.
To address this challenging situation, Frontera has announced its intention to launch a buyback program aimed at repurchasing up to 10% of its outstanding shares over the next year.