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Alvopetro Energy Ltd (TSE:ALV)
:ALV

Alvopetro Energy (ALV) AI Stock Analysis

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Alvopetro Energy

(ALV)

87Outperform
Alvopetro Energy demonstrates robust financial performance, strong technical indicators, and attractive valuation metrics. The company shows positive growth prospects with increased production, reserves, and strategic expansions. However, the decline in revenue and return on equity warrants monitoring for future strategic improvements.

Alvopetro Energy (ALV) vs. S&P 500 (SPY)

Alvopetro Energy Business Overview & Revenue Model

Company DescriptionAlvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons. As of December 31, 2021, it held interests in the Caburé and Murucututu natural gas assets; two exploration assets comprising Blocks 182 and the western portion of Block 183; and two oil fields, Bom Lugar and Mãe-da-lua, which include 22,166 acres in the Recôncavo basin onshore Brazil. The company was incorporated in 2013 and is headquartered in Calgary, Canada.
How the Company Makes MoneyAlvopetro Energy generates revenue primarily through the sale of natural gas and oil produced from its exploration and production activities in Brazil. The company's revenue model is centered on extracting natural resources and selling them to industrial, commercial, and power generation customers. Key revenue streams include long-term gas sales agreements with local distributors and industries, ensuring a stable and predictable cash flow. Alvopetro's partnership with key players in the energy sector, along with its strategic positioning in a high-demand market, significantly contributes to its earnings. Additionally, the company may also generate income from the sale of oil byproducts and other ancillary services related to energy production.

Alvopetro Energy Financial Statement Overview

Summary
Alvopetro Energy demonstrates strong financial health with solid profitability, a robust balance sheet, and efficient cash flow management. The company maintains high profit margins and a stable financial position, supporting sustainable growth in the competitive fossil fuels industry.
Income Statement
85
Very Positive
Alvopetro Energy demonstrates strong profitability with high gross profit and net profit margins for the TTM (Trailing-Twelve-Months). While there is a slight decline in revenue from the previous period, the company maintains solid EBIT and EBITDA margins, indicating effective operational management.
Balance Sheet
78
Positive
The company has a healthy financial position with a strong equity ratio and manageable debt levels. The debt-to-equity ratio is low, reflecting prudence in leveraging. Return on Equity (ROE) remains robust, showcasing efficient use of equity for generating profits.
Cash Flow
82
Very Positive
Alvopetro Energy's cash flow performance is commendable, with a solid operating cash flow to net income ratio. Free cash flow remains positive, indicating good cash management. However, the free cash flow growth rate is stable, suggesting room for improvement in cash generation efficiency.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
58.03M63.51M34.98M11.31M240.00K
Gross Profit
53.83M48.47M20.13M7.16M-304.00K
EBIT
47.66M43.00M15.38M3.19M-3.33M
EBITDA
41.96M46.28M22.16M5.64M-3.09M
Net Income Common Stockholders
28.52M31.73M5.59M5.71M-5.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.33M19.78M11.47M5.16M1.22M
Total Assets
109.83M98.43M81.23M80.39M71.42M
Total Debt
8.68M9.43M14.52M23.73M5.19M
Net Debt
-9.64M-10.36M3.06M18.57M3.98M
Total Liabilities
21.62M22.02M22.61M27.28M15.54M
Stockholders Equity
88.21M76.41M58.63M53.11M55.87M
Cash FlowFree Cash Flow
20.25M22.74M19.78M-356.00K-11.97M
Operating Cash Flow
47.70M47.53M24.29M3.06M-2.54M
Investing Cash Flow
-27.75M-22.77M-3.98M-3.23M-7.56M
Financing Cash Flow
-21.74M-16.55M-13.74M4.23M4.20M

Alvopetro Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.35
Price Trends
50DMA
4.85
Positive
100DMA
4.88
Positive
200DMA
4.75
Positive
Market Momentum
MACD
0.17
Negative
RSI
65.36
Neutral
STOCH
66.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALV, the sentiment is Positive. The current price of 5.35 is above the 20-day moving average (MA) of 5.06, above the 50-day MA of 4.85, and above the 200-day MA of 4.75, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ALV.

Alvopetro Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSALV
87
Outperform
C$194.75M9.1719.30%9.68%-22.78%-43.14%
TSHME
81
Outperform
C$163.57M4.9848.82%5.92%17.74%40.78%
TSPRQ
62
Neutral
C$164.11M3.97-0.40%9.38%-25.10%-102.44%
TSIPO
61
Neutral
C$188.59M10.423.24%16.00%-14.73%-71.36%
56
Neutral
$6.93B3.23-4.86%5.94%0.12%-48.32%
51
Neutral
C$232.00M-188.18%219.95%-127.76%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ALV
Alvopetro Energy
5.40
1.05
24.14%
PIFYF
Pine Cliff Energy
0.41
-0.27
-39.71%
TSE:HME
Hemisphere Energy
1.70
0.20
13.33%
TSE:GASX
NG Energy International
0.89
0.05
5.95%
TSE:PRQ
Petrus Resources
1.28
0.02
1.59%
TSE:IPO
InPlay Oil Corp.
6.73
-6.23
-48.07%

Alvopetro Energy Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q4-2024)
|
% Change Since: 0.00%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in production, reserve increases, and strategic expansion into new markets, demonstrating a positive outlook for 2025. While there were some financial challenges in Q4 2024, such as decreased operating netback and foreign exchange losses, the overall sentiment remains optimistic due to operational achievements and strategic initiatives.
Q4-2024 Updates
Positive Updates
Increased Production Capacity
Alvopetro's January and February production averaged 2,375 barrels of oil equivalent per day, up 37% from Q4 2024 production.
Dividend Increase
Announced an increase in the dividend for Q1 2025 to US$0.10 per share, reflecting a 12% yield at current share prices.
Significant Reserve Growth
Proved reserves increased by 65% and proved + probable reserves increased by 5% year-over-year.
Strong Operating Netback Margin
Despite a slight decrease, the operating netback remained high at 86%.
Debt-Free Status
Maintained a strong balance sheet with $13.2 million in working capital and no debt since September 2022.
Strategic Expansion into Canada
Entered the Western Canadian Sedimentary Basin, targeting Mannville heavy oil fairway with promising new technologies.
Successful Contract Revision
Revised gas sales agreement with Bahiagás, increasing firm sales by 33% and removing previous contractual ceiling provisions.
Negative Updates
Decreased Q4 Operating Netback
Operating netback decreased by $4.10 from the previous quarter, primarily due to lower sales volumes and prices.
Foreign Exchange Losses
Experienced a $2 million foreign exchange loss in Q4 2024, a significant swing from a $600,000 gain in Q3.
Reduced Natural Gas Sales Price
Natural gas sales price decreased by about 4% from the previous quarter.
Sales Volume Reduction
Q4 2024 saw a 17% reduction in sales volumes compared to Q3.
Company Guidance
In the Q4 2024 results webcast, Alvopetro provided detailed guidance for 2025, highlighting several key metrics. The company has increased its firm natural gas supply to Bahiagás by 33%, leading to an average production of 2,375 barrels of oil equivalent per day in January and February, up 37% from Q4 2024. The operating netback was reported at $55.09, with a margin of 86%, despite a 4% reduction in realized sales price and a 17% reduction in volumes. Alvopetro announced a dividend increase to US$0.10 per share for Q1 2025, reflecting higher sales volumes. The year-end reserve report showed a 65% increase in 1P reserves, totaling 4.5 million BOE, and a 5% increase in 2P reserves, totaling 9.1 million BOE. The company's balance sheet remains strong, with $13.2 million in working capital and no debt. Alvopetro has strategically entered the Canadian market, drilling two wells in the Mannville heavy oil fairway, aiming to capitalize on multi-zone reservoirs. The company projects a strong 2025 with a focus on maintaining a balanced capital allocation model, emphasizing both organic growth and stakeholder returns.

Alvopetro Energy Corporate Events

Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports Strong Q1 2025 Results and Strategic Expansion
Positive
May 7, 2025

Alvopetro Energy Ltd. reported a 41% increase in Q1 2025 sales volumes, indicating a strong start to the year and positioning the company for an ambitious capital program. The company is capitalizing on high-return opportunities in Brazil and Canada, with its first two Canadian wells exceeding expectations. Alvopetro’s strategic entry into the Western Canadian Sedimentary Basin is part of its plan to expand its inventory of prospective opportunities while maintaining a disciplined capital allocation model. The company also announced a 7% increase in natural gas prices under its agreement with Bahiagás, effective May 1, 2025, which will impact its revenue positively.

Spark’s Take on TSE:ALV Stock

According to Spark, TipRanks’ AI Analyst, TSE:ALV is a Outperform.

Alvopetro Energy demonstrates robust financial performance, buoyed by strong operational efficiency and strategic growth initiatives. The company benefits from a solid technical setup and attractive valuation metrics. The stock’s positive outlook is reinforced by strong production growth and strategic expansions, although past revenue declines warrant monitoring.

To see Spark’s full report on TSE:ALV stock, click here.

Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports 41% Increase in Q1 2025 Sales Volumes
Positive
Apr 3, 2025

Alvopetro Energy Ltd. reported a significant increase in sales volumes for March 2025, with an average daily sales volume of 2,580 boepd, marking a 41% rise from the previous quarter. This growth is attributed to increased production from their Caburé and Murucututu fields, reflecting the company’s successful strategic investments and positioning in the natural gas market.

Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports 41% Increase in Q1 2025 Sales Volumes
Positive
Apr 3, 2025

Alvopetro Energy Ltd. reported a significant increase in its sales volumes for March 2025, with an average daily sales volume of 2,580 barrels of oil equivalent per day (boepd), marking a 41% increase from the previous quarter. This growth is attributed to increased production from its Caburé and Murucututu natural gas fields, positioning the company strongly within the energy market and indicating robust operational performance and strategic infrastructure development.

DividendsBusiness Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports Strong Start to 2025 with Increased Gas Sales and Reserve Growth
Positive
Mar 18, 2025

Alvopetro Energy Ltd. reported a 37% increase in natural gas sales volumes for the start of 2025, attributed to enhanced productive capacity and an updated gas sales agreement. The company announced a quarterly dividend increase to US$0.10 per share, reflecting its commitment to balanced capital allocation. Alvopetro also revealed significant reserve increases, with 1P reserves up by 65% and 2P reserves by 5%, boosting the company’s net present value and indicating strong future potential. The company is actively expanding its operations with new drilling projects in both the Murucututu natural gas field and Western Saskatchewan.

Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Reports February Sales and Strategic Focus
Neutral
Mar 5, 2025

Alvopetro Energy reported February 2025 sales volumes of 2,285 barrels of oil equivalent per day, with natural gas sales reaching 13.0 million cubic feet per day. The sales volumes were slightly impacted by reduced demand in the last week of February, but March sales are expected to align with January levels. The company’s strategic focus on organic growth and balanced capital allocation continues to support its operations and stakeholder returns.

Business Operations and StrategyFinancial Disclosures
Alvopetro Energy Boosts Reserves and Market Position with Successful 2024 Developments
Positive
Feb 27, 2025

Alvopetro Energy Ltd. reported a significant increase in its reserves as of December 31, 2024, with a 65% rise in total proved (1P) reserves to 4.5 MMboe and a 5% increase in total proved plus probable (2P) reserves to 9.1 MMboe. The company’s net present value (NPV10) of these reserves also saw substantial growth, with a 53% increase for 1P reserves and a 6% increase for 2P reserves. This growth is attributed to a successful redetermination of working interest in the Caburé field and successful results from the 183-A3 well in the Murucututu project. These developments have enabled Alvopetro to commit to higher sales volumes with its offtaker, Bahiagás, for 2025, enhancing its capital allocation strategy and strengthening its market position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.