Canacol Energy Ltd. (TSX: CNE) announced today its financial results for Q1 2021, recording US$65.8 million in revenue. This is a 7% decrease from Q1 2020’s revenue of US$71.0 million.
The company attributes the revenue decrease mainly to the decline of natural gas production and lower gas sales prices.
Further down the line, the financials recorded a net loss of US$3.1 million for the quarter, an 88% improvement from last year’s net loss of US$26.0 million. Canacol points the loss to the non-cash deferred tax expense of US$11.3 million due to the reduction in the Colombian peso exchange rate. The quarter’s net loss translates to a US$0.02 loss per share.
The average natural gas production for the quarter sat at 179.5 MMscfpd, an 11% decrease from the 201.4 MMscfpd produced in the year ago period. The company relayed that this decrease is due to a large portion of annual contractual downtime being spent on regular maintenance and a decrease in spot market sales as a result of the COVID-19 pandemic.
The company ended the quarter with US$71.5 million in cash and cash equivalents, up 5% from last year’s US$68.3 million.
For 2021, Canacol also shared that it intends to focus on drilling 12 exploration, appraisal, and development wells to target a 2P reserves replacement ratio of more than 200 percent; acquiring 655 square kilometers of 3D seismic on its VIM-5 and SSJN-7 blocks; constructing a new gas pipeline from the Jobo natural gas processing facility to increase natural gas sales by 100 MMscfpd in 2024; and strengthening its environmental, social and governance strategy.
You may see the full details of Canacol’s financial results for Q1 2021 here.
Canacol Energy Ltd. last traded at $3.36 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.