09:28 AM EST, 03/05/2025 (MT Newswires) -- Parex Resources ( PARXF ) on Wednesday reported a swing to a net loss for the fourth quarter, largely on non-cash impairments, but said it is "tracking" to deliver fiscal year 2025 average production guidance.

For Q4, Parex reported a net loss of US$69 million or $0.70 per share basic versus net income of $133.8 million a year earlier.

Among other highlights, for Q4 average production was 45,297 boe/d; the company generated FFO of $141 million and FFO per share of $1.43; and it produced an operating netback of $34.90/boe and an FFO netback of $32.39/boe from an average Brent price of $74.01/bbl.

Parex said it recovered current tax of $6 million in the quarter; for 2025 the company expects its FFO netback to be supported by lower current tax expenses compared to prior periods due to the company's before tax cash flow profile, previous capital expenditures, and certain tax strategies that have been deployed over recent years.

For Q4, Parex incurred $82 million of capital expenditures, primarily from activities at LLA-34, LLA-32, and Capachos. It generated $59 million of free funds flow; working capital surplus was $59 million and cash was $98 million at quarter end.

In 2024, the company said it added 10 mmboe 1P reserves and 7 mmboe 2P reserves at LLA-34 and Cabrestero through "positive" technical revisions as well as extensions and improved recovery; 2024 reserves evaluation supported by technology, including waterflood and polymer injection results. It is "tracking" to deliver FY 2025 average production guidance of 43,000 to 47,000 boe/d (45,000 boe/d midpoint); YTD average production is 44,500 boe/d.

Also, Parex appointed Cameron Grainger as Chief Financial Officer, effective immediately.

The board of directors has approved a Q1 2025 regular dividend of C$0.385 per share to holders of record on March 11, 2025, to be paid on March 18, 2025.

As at February 28, 2025, Parex has repurchased approximately 0.3 million shares under its current NCIB at an average price of C$14.30 per share, for a total consideration of roughly C$4 million.

Imad Mohsen, President & Chief Executive Officer, said: "Despite challenges, we accomplished multiple strategic milestones throughout the year that reinforce Parex's long-term sustainability. Building on a strong foundation, as reflected in today's reserve report, we remain focused on executing our 2025 plan, which is characterized by lower-risk activities and a high-graded set of opportunities. The team at Parex is dedicated to rebuilding market confidence, by delivering steady results, evolving our Colombian portfolio, and strengthening our track record of shareholder returns -- while also progressing towards Llanos Foothills exploration in 2026."

PXT fell 3.75% to $12.58 on the TSX yesterday.