Shares of International Petroleum declined as the company’s financial performance in the final quarter of last year fell short of expectations. On the Toronto Stock Exchange, the shares were down 3.2% at C$13.90, narrowing the year-on-year advance to 1.8%.
In the fourth quarter, the Canadian energy company reported a net income of $29.7 million, compared to $61.2 million in the previous year and below the mean forecast of analysts polled by FactSet, which was $38.9 million. Furthermore, revenue for the period was $198.5 million, a decrease of 22% and lower than the expected $225.3 million.
Despite these disappointing results, International Petroleum’s assets produced an average net production of 49,600 oil-equivalent barrels per day during the quarter, aligning with the company’s high-end guidance and within the range projected by analysts.
Looking ahead, the company forecasts a production range of 46,000 to 48,000 barrels of oil equivalent per day for this year, which is lower than the average of 51,100 barrels in 2023. However, International Petroleum aims to achieve an average net production of approximately 55,000 between 2024 and 2028, and a further increase to 65,000 starting from 2029 until 2033.
Despite indicating a record level of capital investment planned for 2024, International Petroleum remains committed to its share buyback program. The company intends to repurchase up to 6.5 million common shares by December 4th, resulting in the cancellation of approximately 6.5% of its outstanding shares as of December last year.
