CONSOL Energy Inc. (CNX) has reported a 78.70 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $25.34 million, or $0.11 a share in the quarter, compared with $118.98 million, or $0.52 a share for the same period last year.
Revenue during the quarter grew 3.42 percent to $745.58 million from $720.93 million in the previous year period. Total expenses were 78.17 percent of quarterly revenues, up from 66.19 percent for the same period last year. That has resulted in a contraction of 1198 basis points in operating margin to 21.83 percent.
Operating income for the quarter was $162.74 million, compared with $243.74 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $158.57 million compared with $152.48 million in the prior year period. At the same time, adjusted EBITDA margin improved 12 basis points in the quarter to 21.27 percent from 21.15 percent in the last year period.
"During the quarter, CONSOL continued to execute its plan and generated approximately $103 million in organic free cash flow from continuing operations1, which, along with a portion of the $97.6 million of the cash on hand from June 30, 2016, was used to further reduce CONSOL's revolver by approximately $112 million, and to improve liquidity to $1.4 billion," commented Nicholas J. DeIuliis, president and CEO. "With a track record over the past three quarters of reducing debt through generating total free cash flow of approximately $608 million, and, beginning this quarter, restarting drilling activity in the dry Utica in Monroe County, Ohio, our focus remains unchanged: continue to generate free cash flow and prudently allocate capital with the goal of increasing our company's net asset value (NAV) per share over the long-term. This is the cornerstone of our company and what drives our corporate and operational decision-making."
Operating cash flow falls marginally
CONSOL Energy Inc. has generated cash of $386.64 million from operating activities during the nine month period, down 4.36 percent or $17.65 million, when compared with the last year period.
Cash flow from investing activities was $221.28 million for the nine month period as against cash outgo of $882.34 million in the last year period.
The company has spent $600.25 million cash to carry out financing activities during the nine month period as against cash inflow of $384.08 million in the last year period.
Cash and cash equivalents stood at $80.25 million as on Sep. 30, 2016, down 3.34 percent or $2.77 million from $83.02 million on Sep. 30, 2015.
Working capital remains negative
Working capital of CONSOL Energy Inc. was negative $555.33 million on Sep. 30, 2016 compared with negative $897.24 million on Sep. 30, 2015. Current ratio was at 0.48 as on Sep. 30, 2016, down from 0.52 on Sep. 30, 2015.
Days sales outstanding went down to 43 days for the quarter compared with 57 days for the same period last year.
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