Bloomberg News

Petrominerales Drops After Surprise Quarterly Loss: Bogota Mover

March 06, 2013

Petrominerales Ltd. (PMG), the Calgary- based oil company that operates in Colombia and Peru, dropped to a record after reporting a surprise fourth-quarter loss.

Shares declined 6.9 percent to 13,240 pesos at 1:17 p.m. in Bogota, the all-time low on a closing basis. The stock has fallen 9.7 percent this year, the third-worst performance on Colombia’s Colcap index, which has decreased 1.5 percent. The stock sank 6.9 percent in Toronto trading.

Petrominerales reported an adjusted net loss of 63 cents a share in the fourth quarter after profit of 72 cents in the same period a year earlier. Analysts surveyed by Bloomberg expected earnings per share of 32 cents.

“The business is broken,” Ian Macqueen, an analyst at CIBC World Markets Inc. in Calgary, said by e-mail. Investors “will likely focus on the current production and the lack of reserves growth.”

Production fell 29 percent to an average 25,140 barrels a day in the fourth quarter and has since declined to 22,461 barrels a day so far in the first quarter, the company said today in a statement.

“We’re not going to pretend that we’re happy with the results we’ve generated on an exploration basis,” Chief Executive Officer Corey Ruttan said today on a conference call. “We’re being a bit more balanced with our capital program between developments, our core exploration and positioning plays for the future.”

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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