Dawson Geophysical Company (DWSN) saw its loss widen to $12.42 million, or $0.57 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.87 million, or $0.13 a share.
Revenue during the quarter plunged 55 percent to $28.12 million from $62.50 million in the previous year period. Operating margin for the quarter stood at negative 50.70 percent as compared to a negative 7.46 percent for the previous year period.
Operating loss for the quarter was $14.26 million, compared with an operating loss of $4.66 million in the previous year period.
Stephen C. Jumper, president and chief executive officer, said, "Demand for seismic data acquisition services in North America and worldwide continues to be soft in response to low and uncertain oil prices and reduced client expenditures. During the quarter ended September 30, 2016, oil prices averaged approximately $45 per barrel, starting the quarter at just over $49 per barrel, dropping to a quarterly low below $40 per barrel on August 2, and ending the quarter at just under $48 per barrel for West Texas Intermediate. While encouraging, it remains to be determined if the recent strengthening in oil prices can be sustained, and the price increases have yet to result in a meaningful increase in demand for our services."
Working capital declines
Dawson Geophysical Company has witnessed a decline in the working capital over the last year. It stood at $63.88 million as at Sep. 30, 2016, down 12.01 percent or $8.72 million from $72.60 million on Sep. 30, 2015. Current ratio was at 5.15 as on Sep. 30, 2016, up from 3.34 on Sep. 30, 2015.
Days sales outstanding went up to 72 days for the quarter compared with 51 days for the same period last year.
Debt comes down significantly
Dawson Geophysical Company has recorded a decline in total debt over the last one year. It stood at $3.99 million as on Sep. 30, 2016, down 67.22 percent or $8.19 million from $12.18 million on Sep. 30, 2015. Total debt was 2.02 percent of total assets as on Sep. 30, 2016, compared with 4.68 percent on Sep. 30, 2015. Debt to equity ratio was at 0.02 as on Sep. 30, 2016, down from 0.06 as on Sep. 30, 2015.
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