Full-year results were highlighted by record production per share achieved, up 12% year-over-year. Annual funds flow provided by operations (FFO) was $668M and free funds flow (FFF) was $184M in 2023 down from $725M and $212M respectively from 2022. Revenue also declined nearly 11% year-over-year. Q4 was particularly weak with net income of US$133.8M ($1.28 per share), down 44% on a year-over-year basis from US$250.0M ($2.29 per share). While production was up on a full year basis, headwinds made for a weak full year 2023 while some of these factors are expected to carry into Q1 as well. The decline probably comes more from investor worry over politics. The full-year forecast of 54,000-60,000 barrels a day reflects a buffer for the resurgence of protest-driven operational shut-ins -- most recently in January lasting one month -- and confirms a view of elevated above-ground risk persisting in the near term. Colombian President Gustavo Petro's strong policy opposition to oil development remains a significant headwind for investor sentiment in the region.
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