August 13, 2013 (www.investorideas.com newswire) 2Q13 production was in line with our expectations and those of the market, but sales volume and financial results posted negative surprises. Production continued to stand at the upper limit of the 2013 target range. However, according to the Company, sales volume was adversely affected by restrictions in the Coveñas seaport, what led to a delay in the export of a 1Mbbl cargo which could not be accounted in these quarterly results (and will be registered for all purposes in the 3Q13). Consequently, revenues and EBITDA were lower than expected, although we highlight the increase in EBITDA margin, due to the favorable performance of operating costs. On the other hand, depreciation, depletion and amortization costs continued to grow considerably, affecting operating profit. Thus, net income for the quarter declined significantly, also affected by lower non-operating income and higher income tax provision.
We maintain our expectation of a better performance for the sector and for the Company in the second half of 2013, supported on higher oil prices, the recently granted environmental permit for additional water disposal in the Rubiales Field, the start of operations of the Bicentenario Pipeline and further implementation of initiatives to reduce costs. Other major catalysts for Pacific Rubiales would be: i) Possible granting of the environmental permit to continue the exploration and development of the CPE-6 block, which would mark a significant milestone for the Company; ii) The USD 150 million investment by International Finance Corporation (IFC), member of the World Bank Group, in Pacific Infrastructure Venture Inc.; and iii) Possible certification in August 2013 of an increase in the recovery factor in STAR’s pilot area, according to the 2Q13 MD&A. However, it should be noted the high sensitivity of Pacific’s share to many factors, which affect the realization of expectations and cause a significant volatility.
This report has been prepared by Inversiones IMT S.A. and/or Correval S.A. Sociedad Comisionista de Bolsa and/or BCP Capital S.A.A. and/or their subsidiaries for informative purposes only. This report is based on publicly available information that it should be considered to come from reliable sources. However we do not guarantee it as accurate or complete and it should not be relied on as such.
Unless otherwise stated, this report does not include privileged information that could violate either copyrights or market regulations.
This material belongs to Inversiones IMT S.A. and/or Correval S.A. Sociedad Comisionista de Bolsa and/or BCP Capital S.A.A. and/or their subsidiaries and cannot be copied, distributed or redistributed in any form by any means or without the prior written consent of Inversiones IMT S.A. and/or Correval S.A. Sociedad Comisionista de Bolsa and/or BCP Capital S.A.A. and/or their subsidiaries.
The purpose of this report is not to predict the future, nor guarantee specific financial results. It is also important to consider that the information contained in this research may be oriented to a specific segment of clients or investors, with a certain risk profile that may not be yours. Unless otherwise stated, the report does not contain investment recommendations or other suggestions that can be understood to be given under the capital market intermediaries’ special duty to clients classified as investors. When recommendations are made, the report will specify a risk profile. Inversiones IMT S.A. and/or Correval S.A. Sociedad Comisionista de Bolsa and/or BCP Capital S.A.A. and/or their subsidiaries can seek and/or conduct business with companies that are mentioned in the report, and they can also execute buying and selling transactions of shares that are mentioned.
It is important to state that fluctuations in Exchange rates can have adverse effects on investment value. Inversiones IMT S.A. and/or Correval S.A. Sociedad Comisionista de Bolsa and/or BCP Capital S.A.A. and/or their subsidiaries recommend their clients to seek assistance from professionals accredited by the appropriate regulatory agency. It is up to the client to determine if the information in this report is sufficient to make an investment decision or any other market operation.
Under no circumstances can the information published here be considered as provided legal, accounting or taxation concept. When it is required, Inversiones IMT S.A. and/or Correval S.A. Sociedad Comisionista de Bolsa and/or BCP Capital S.A.A. and/or their subsidiaries recommend their clients to seek advice from accredited professionals.
Inversiones IMT S.A. and/or Correval S.A. Sociedad Comisionista de Bolsa and/or BCP Capital S.A.A. do not assume any responsibility, obligation nor any loss related to the information contained in this report, neither do these same firms assume civil responsibility for any legal recourse caused by action or omission derived from this document.
This news is published on the Investorideas.com Newswire and its syndicated partner network
Published at the Investorideas.com Newswire - Big ideas for Global Investors
Disclaimer/ Disclosure:The Investorideas.com newswire is a third party publisher of news and research as well as creates original content as a news source. Original content created by investorideas is protected by copyright laws other than syndication rights. Investorideas is a news source on Google news and Linkedintoday plus hundreds of syndication partners. Our site does not make recommendations for purchases or sale of stocks or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated by featured companies, news submissions, content marketing and online advertising. Contact each company directly for press release questions. Disclosure is posted on each release if required but otherwise the news was not compensated for and is published for the sole interest of our readers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
BC Residents and Investor Disclaimer : Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.