Freehold Royalties (FRU.TO) after trade Wednesday reported a 6% year-over-year drop in first-quarter profit as revenue fell, though results topped estimates, while the company said it continues to monitor global geopolitical conditions.
The company posted net income of C$35.1 million, or $0.21 per share, compared with $37.3 million, or $0.23, in the year-prior quarter. The consensus estimate among analysts polled by FactSet expected earnings of $0.18 per share.
Royalty and other revenue declined 15% to $77.8 million from $91.1 million in the prior-year period.
In the first quarter, total production stood at 15,533 boe/d (barrels of oil equivalent per day) including crude oil and natural gas liquids production of 10,136 bbls/d, representing a 65% liquids weighting in the quarter. The company also returned $44 million ($0.27/share) to shareholders through monthly dividends during the period.
It also declared a monthly dividend of $0.09 per share to be paid on June 15, 2026, to shareholders of record on May 29.
Additionally, Freehold Intends to apply to Toronto Stock Exchange to renew its Normal Course Issuer Bid (NCIB) for a further one-year period. If accepted, the NCIB will commence after the expiry of the current NCIB on May 26, 2026.
"We continue to expect that our liquids-weighted North American asset base will generate meaningful cash flows with current and expected macroeconomic conditions, supporting the Company's ability to sustain its dividends and deliver robust, long-term shareholder returns," said chief executive David Spyker.
The company said it expects that production levels will continue at a moderate level into the second quarter of 2026, before growing through the latter half of the year. It added that any increase in production resulting from current political volatility is more likely to materialize starting in late 2026.
Shares of the company closed up $0.20 to $17.75 on Toronto Stock Exchange