GeoPark(US:GPRK)2025-11-05 21:39Financial Performance - Revenue for the three-month period ended September 30, 2025, was $125.1 million, a decrease of 21.5% compared to $159.5 million in the same period of 2024[12] - Operating profit for the nine-month period ended September 30, 2025, was $89.9 million, down 60.7% from $229.0 million in the same period of 2024[12] - Profit for the three-month period ended September 30, 2025, was $15.9 million, a decline of 36.8% compared to $25.1 million in the same period of 2024[15] - Basic earnings per share for the three-month period ended September 30, 2025, was $0.31, down from $0.49 in the same period of 2024[12] - The Company reported a total comprehensive profit for the nine-month period ended September 30, 2025, of $24.7 million, compared to $79.5 million in the same period of 2024[15] - Profit for the nine-month period ended September 30, 2025, was $18,589,000, a decrease of 77% compared to $81,035,000 in the same period of 2024[24] - Adjusted EBITDA for the nine-month period ended September 30, 2025, was $230,851,000, down 32% from $339,202,000 in the prior year[43][44] - Adjusted EBITDA for the three-month period ended September 30, 2025, was $71,396,000, down 28.5% from $99,803,000 in the same period of 2024[47] Assets and Liabilities - Total assets as of September 30, 2025, were $1,007.1 million, a decrease from $1,200.1 million at the end of 2024[19] - Total equity attributable to owners of the Company increased to $208.6 million as of September 30, 2025, compared to $203.3 million at the end of 2024[19] - Non-current liabilities increased to $674.0 million as of September 30, 2025, from $628.1 million at the end of 2024[19] - Cash and cash equivalents decreased to $197.0 million as of September 30, 2025, from $276.8 million at the end of 2024[19] - Total revenue for the nine-month period ended September 30, 2025, was $382,224,000, a decline of 26% from $517,124,000 in the same period of 2024[43][44] - Cash and cash equivalents at the end of the period were $197,007,000, an increase from $123,440,000 at the end of September 2024[24] - The carrying amount of property, plant, and equipment decreased to US$ 652,614,000 as of September 30, 2025, from US$ 728,560,000 in 2024[71] - As of September 30, 2025, total borrowings amounted to US$ 570,368,000, an increase from US$ 514,333,000 at the end of 2024[80] Cash Flow and Expenses - Cash flows used in operating activities for the nine-month period ended September 30, 2025, were $(40,158,000), compared to $269,521,000 in 2024[24] - The company incurred financial expenses of $60.7 million for the nine-month period ended September 30, 2025, compared to $32.7 million in the same period of 2024[12] - Financial expenses increased to $16,829,000 in Q3 2025 from $10,634,000 in Q3 2024, reflecting a rise of 58.5%[47] - Financial expenses for the nine-month period ended September 30, 2025, totaled US$ 60,712,000, a 86% increase from US$ 32,656,000 in 2024[64] - The Group reported a current income tax expense of US$ 10,691,000 for the three-month period ended September 30, 2025, down 53% from US$ 23,063,000 in 2024[67] - The consolidated effective tax rate was 20% for the three-month period ended September 30, 2025, significantly lower than 46% in the same period of 2024[69] Operational Changes and Investments - The production in the Manati gas field was temporarily suspended between March 2024 and May 2025 due to maintenance activities[44] - Total production and operating costs for the nine-month period ended September 30, 2025, were $101,293,000, down 15.4% from $119,771,000 in the same period of 2024[59] - Staff costs for the three-month period ended September 30, 2025, were $3,515,000, a decrease of 12.3% from $4,010,000 in Q3 2024[59] - The company incurred investments of US$ 9,934,000 to fulfill capital commitments during the nine-month period ended September 30, 2025[92] Acquisitions and Divestments - The company completed the acquisition of 100% of Fenix Oil & Gas Limited on April 11, 2025[39] - GeoPark announced the acquisition of a 100% operated working interest in the Loma Jarillosa Este and Puesto Silva Oeste Blocks in Argentina for US$ 115,000,000, with a security deposit of US$ 22,700,000 recognized[96][98] - The divestment of working interests in Ecuador was executed for a total consideration of US$ 6,910,000, including a contingent consideration of US$ 750,000[101] - The company agreed to transfer its non-operated working interest in the Llanos 32 Block in Colombia for US$ 19,000,000, minus a working capital adjustment of US$ 3,660,000, with net proceeds already received[104] - GeoPark entered into an agreement to sell its 10% non-operated working interest in the Manati gas field in Brazil for US$ 1,000,000, plus a contingent payment of an additional US$ 1,000,000, with an advance payment of US$ 500,000 already collected[105] Market Conditions and Risks - The Brent crude oil price fell by more than 20% in early April 2025, reaching levels below US$ 60 per barrel, significantly impacting the company's market outlook[111] - Cost efficiency measures implemented from March to September 2025 included workforce reductions, incurring termination costs of US$ 6,945,000[114] - GeoPark's Board of Directors rejected an unsolicited proposal from Parex Resources Inc. to acquire the company for US$ 9.00 per share, deeming it significantly undervalued[115] - As of September 30, 2025, no additional indicators of impairment were identified, and the company will continue to monitor macroeconomic developments and oil market conditions[113] - The divestment process of the Perico and Espejo Blocks was considered an indicator of impairment as of June 30, 2025, leading to the recognition of the impairment loss[110] Financial Management - The Company declared cash dividends of US$ 0.147 per share in March, May, and August 2025, totaling approximately US$ 6,000,000 for the next four quarters, followed by a dividend suspension starting Q3 2026[78] - The Company successfully placed US$ 550,000,000 senior notes due 2030 with a coupon of 8.75% per annum, with an effective debt issuance rate of 8.98%[81] - A realized gain of US$ 6,138,000 on commodity risk management contracts was recorded during the nine-month period ended September 30, 2025[79] - The Company repurchased US$ 77,405,000 of its Notes due 2030 at an average price of US$ 0.89, recognizing US$ 7,969,000 as financial income[84] - The Group recognized a one-off non-cash charge of US$ 6,240,000 related to borrowings cancellation costs during the nine-month period ended September 30, 2025[64]