Overview

* Alvopetro Q3 oil and gas sales rise 10% yr/yr, driven by higher sales volumes

* Net income for Q3 falls 36% yr/yr due to impairment losses and higher expenses

* Company sets record October sales volumes, driven by Brazil and Canada operations

Outlook

* Company expects natural gas price of $10.15/Mcf from Nov 2025 to Jan 2026

* Alvopetro plans to drill two earning wells in Canada by late 2025

* Company continues development in Brazil's Murucututu field with increased sales

Result Drivers

* MURUCUTUTU FIELD - 183-D4 well in Brazil exceeded co's pre-drill estimates, boosting production

* OCTOBER SALES RECORD - Record sales volumes in October driven by Brazil and Canada operations

* SPOT CONTRACTS - Spot contracts with Bahiagas for volumes above firm contract contributed to increased sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Oil & $14.18

Gas mln

Sales

Q3 Net $4.61

Income mln

Q3 Capex $11.25

mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for Alvopetro Energy Ltd ( ALVOF ) is C$7.88, about 18.3% above its November 4 closing price of C$6.43

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)