Canadian independent energy company Gran Tierra Energy Inc. (GTE,GTE.TO) Friday reported a net loss for the third quarter compared to a profit in the prior year. Results were affected by lower oil prices, a significant increase in operating costs as well as foreign exchanges losses.
For the third quarter, the company's net loss and comprehensive loss was US$2.82 million or US$0.01 per share compared to an income of US$22.99 million or US$0.18 per share last year. Results for the quarter included a foreign exchange loss of US$18.9 million due to an unrealized non-cash foreign exchange loss of US$20.3 million with regard to translation of deferred tax liability recorded on acquisition of Solana Resources. The company stated that a strengthening Colombian peso against the U.S. dollar resulted in foreign exchange losses, estimated at US$70 thousand for each one peso decrease in the exchange rate of Colombian peso to one U.S. dollar.
Revenues and other income for the period surged to US$75.35 million from US$40.34 million in the prior year quarter. Gran Tierra attributed the increase in revenues to a 209% rise in production, primarily due to higher production from continued development of Costayaco field in Chaza Block in Colombia, and addition of production from Solana Resources' interests in Colombia.
Oil and natural gas sales for the third quarter were US$75.17 million versus US$40.08 million, while revenues from interest slumped to US$183 thousand from US$257 thousand a year earlier.
For the quarter ended September 30, 2009, the company increased its production to 12,945 barrels of oil per day, or BOPD, net after royalty from 4,194 BOPD net after royalty in the corresponding period prior year.
The average price received per barrel of oil in the third quarter dropped 39% to US$63.12 from US$103.88 in the previous year. Funds flows from operations were US$53.13 million compared to US$17.77 million in the prior year quarter.
During the three-month period, total expenses incurred by Gran Tierra increased to US$70.21 million from US$9.48 million last year. Operating costs for the third quarter increased to US$9.10 million from US$4.51 million in the same quarter in 2008. On a per barrel basis, operating expenses declined by 35% to US$7.64 per barrel from US$11.70 per barrel a year ago, reflecting higher producing wells.
Depletion, depreciation and accretion expenses for the quarter ended September 30, 2009 rose to US$35.2 million or US$29.59 per barrel from US$6.8 million or US$17.51 per barrel in fiscal 2008, reflecting higher production levels and amortization of US$26.9 million in the quarter with regard to fair value of property, plant and equipment recorded on acquisition of Solana Resources.
General and administrative costs for the quarter were up 75% to US$7.1 million from US$4.0 million in the same period in 2008. However, on a per barrel basis, general and administrative costs fell 43% to US$5.94 per barrel from US$10.46 per barrel in the prior year.
In the preceding second quarter, the Calgary Alberta-based company had reported a net loss of US$28.20 million or US$0.12 per share compared to an income of US$8.53 million or US$0.07 per share in the year-ago quarter. Revenues and interest for the second quarter surged 77% to US$58.51 million from US$33.14 million in the second quarter of fiscal 2008.
For the nine-month period, Gran Tierra's net loss and comprehensive loss was US$16.88 million or US$0.07 per share as compared with a profit of US$36.19 million or US$0.30 per share in the 2008-year period. Year-to-date revenues surged to US$167.43 million from US$94.30 million in the same period last year.
President and chief executive officer Dana Coffield said, "--we are positioned to support future growth and fund our ongoing development and exploration program, including an extensive exploration drilling campaign in Colombia and Peru beginning in late 2009 and continuing through 2010."
In Thursday's regular trading session, GTE closed trading on the AMEX at $5.04 per share up 0.40% on a volume of 166,650 shares. In the past 52-week period, the shares have been trading in a range of $1.96 to $5.49.
In Thursday's regular trading session, GTE.TO closed trading on the Toronto Stock Exchange at C$5.39 per share up C$0.02 or 0.37% on a volume of 97,560 shares. In the past 52-week period, the shares have been trading in a range of C$2.51 to C$5.79.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.