California Resources Corporation (CRC) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $546 million, or $ 13.06 a share in the quarter, against a net loss of $104 million, or $2.72 a share in the last year period. On the other hand, adjusted net loss for the quarter narrowed to $71 million, or $1.75 a share from a loss of $86 million or $2.25 a share, a year ago.
Revenue during the quarter dropped 27.16 percent to $456 million from $626 million in the previous year period. Operating margin for the quarter period stood at positive 3.95 percent as compared to a negative 4.79 percent for the previous year period.
Todd Stevens, president and chief executive officer, said, "In the third quarter, we began to ramp up our field activities, while continuing to keep our investments within our cash flow. Importantly, our teams safely re initiated our capital investment programs while maintaining our cost reductions and drilling efficiencies. We anticipate our increased drilling activity in the remainder of 2016 and 2017 has the potential to position CRC for an inflection point in our business."
Operating cash flow drops significantly
California Resources Corporation has generated cash of $145 million from operating activities during the nine month period, down 64.81 percent or $267 million, when compared with the last year period.
The company has spent $31 million cash to meet investing activities during the nine month period as against cash outgo of $542 million in the last year period.
The company has spent $116 million cash to carry out financing activities during the nine month period as against cash inflow of $120 million in the last year period.
Working capital remains negative
Working capital of California Resources Corporation was negative $302 million on Sep. 30, 2016 compared with negative $146 million on Sep. 30, 2015. Current ratio was at 0.54 as on Sep. 30, 2016, down from 0.80 on Sep. 30, 2015.
Days sales outstanding went down to 27 days for the quarter compared with 36 days for the same period last year.
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