Canacol Annual Net Income Slips as Production Capacity Dips

Canacol Energy Ltd. closed 2023 with a slip in net income while total revenues rose in a challenging market. The company’s net income for the year ending December 31, 2023, stood at $86.2 million, down from the $147.3 million reported for 2022.

Realized contractual natural gas sales volume decreased two percent to 178.3 million cubic feet per day (MMcfpd) for the year ended December 31, 2023, compared to 182.4 MMcfpd for 2022. The decrease is due to the unusual and unexpected decrease in the corporation’s production capacity, it said in a media release.

Canacol said it has successfully navigated through unexpected production capacity constraints, ultimately achieving a commendable net income figure.

Furthermore, total revenues, net of royalties and transportation expenses experienced a substantial 11 percent growth, reaching $304.9 million. The revenue increase can be attributed to higher average sales prices, net of transportation expenses, which more than compensated for the rise in operating expenses and royalties, Canacol said.

“As we previously stated, the Corporation’s long-term plan is focused on maintaining and growing our reserve base and production from our core assets in the Lower Magdalena Valley Basin, targeting the full use of existing transportation infrastructure; exploring high impact exploration opportunities in the Middle Magdalena Valley Basin; strategic entrance into the gas market in Bolivia, and continue to develop and improve in the area of ESG”, Canacol President and CEO Charle Gamba said.

Looking forward, Canacol is aiming to grow and maintain its reserves and production in its core gas assets in the Lower Magdalena Valley Basin through comprehensive development and exploration programs. It plans to drill up to five development wells, install new compression and processing facilities as required, and perform workover operations at producing wells in key gas fields.

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