IPC third quarter 2020 financial results and Sustainability Report
November 3, 2020
International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operating results and related management’s discussion and analysis for the nine months ended September 30, 2020. IPC also announces the release of its first Sustainability Report, which details the Corporation’s environmental, social, and governance (“ESG”) performance.
Business Update
• Forecast 2020 net average production revised upwards to over 41,000 barrels of oil equivalent per day (boepd) from the prior guidance of 37,000 to 40,000 boepd.
• Capital and decommissioning expenditure guidance forecast for full year 2020 unchanged at MUSD 80.
• Continued financial flexibility with access to more than MUSD 100 of spare financial headroom as at the end of Q3 2020.
• First IPC Sustainability Report published.
Q3 2020 Financial and Operational Highlights
• Average net production of approximately 41,800 boepd for Q3 2020 (39% heavy crude oil, 21% light and medium crude oil and 40% natural gas).
• Strong production performance with a faster than forecast production ramp up and good reservoir performance at the major oil assets in Canada. Full year net average daily production now expected to exceed the high end of Q2 guidance.
• Operating costs of USD 12.4 per boe for Q3 2020, in line with Q2 2020 guidance. Full year forecast expected at the lower end of the range of USD 12 to 13 per boe.
| Three months ended September 30 | Nine months ended September 30 | |||
| USD Thousands | 2020 | 2019 | 2020 | 2019 |
| Revenue | 95,346 | 131,437 | 220,811 | 408,214 |
| Gross profit / (loss) | 5,557 | 23,487 | (23,416) | 109,659 |
| Net result | 8,850 | 6,330 | (32,691) | 65,216 |
| Operating cash flow | 37,181 | 69,504 | 73,404 | 229,056 |
| Free cash flow | 22,766 | 9,989 | (19,229) | 84,809 |
| EBITDA | 34,251 | 68,885 | 65,447 | 225,160 |
| Net Debt | ||||