Q: CJ announced Q2 Financial & Operating results. I am confused that Prod Vol only dropped 700 boe of about 22000 boe. But the Revenue dropped 40% compared to 2022 Q2 along with other financial components. I am surprised with such mismatch but market seems to ignore it. Please review and advise what am I missing here.
5i Research Answer:
Despite only a small drop in production, actual revenue showed a drop of 40% ($229M to $137M) because of a significant year over year drop in oil and gas prices. Netbacks (revenue per barrel after costs) dropped more than half to $32.51 from $66.51 last year.