Frontera Energy (OTC:FECCF) Corporation has announced a turn to profitability in its latest quarterly earnings despite a drop in oil and gas sales and production. The company reported on Thursday that it generated a profit of $32.6 million, or 37 cents per share, which is a significant improvement from the loss of $26.9 million, or 30 cents per share, recorded in the same period last year. This comes even as the company faced a decline in third-quarter sales to $254.8 million, down from last year's $304.9 million, and a decrease in production to an average of 40,802 barrels per day.
In response to the financial results and with an aim to boost shareholder value, Frontera has unveiled plans for a share buyback program. The initiative targets up to 10% of its outstanding shares over the next 12 months.
Despite these strategic moves, investors reacted negatively to the news. Today, Frontera's shares traded at C$8.31, which is 26% lower than the previous day's close. This downturn reflects a broader 33% decline in the company's share value over the course of this year.
The buyback plan appears to be a strategic step by Frontera to capitalize on what it perceives as undervaluation in its share price amidst challenging market conditions that have affected its sales and production volumes. The company's ability to generate profit despite these challenges signals a resilient operational performance that could reassure investors over the long term.
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