Evolution Petroleum Corporation (EPM) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $2.42 million, or $ 0.07 a share in the quarter, against a net loss of $0.13 million, or $0.01 a share in the last year period.
Revenue during the quarter surged 86.53 percent to $9.53 million from $5.11 million in the previous year period. Gross margin for the quarter expanded 1363 basis points over the previous year period to 70.49 percent. Operating margin for the quarter period stood at positive 40.87 percent as compared to a negative 13.34 percent for the previous year period.
Operating income for the quarter was $3.89 million, compared with an operating loss of $0.68 million in the previous year period.
"Oil production in the Delhi field continues its positive trend, with gross production increasing by over 200 BOPD from the prior quarter," said Randy Keys, president and chief executive officer. "We continue to see the benefits from diverse conformance workovers and performance enhancement projects designed to improve efficiency in use of the recycle CO2 stream. Further, these results have been achieved while reducing purchased CO2 volumes.
Operating cash flow improves significantlyEvolution Petroleum Corporation has generated cash of $11.35 million from operating activities during the nine month period, up 96.88 percent or $5.59 million, when compared with the last year period. The company has spent $10.45 million cash to meet investing activities during the nine month period as against cash outgo of $8.84 million in the last year period.
The company has spent $14.76 million cash to carry out financing activities during the nine month period as against cash outgo of $3.04 million in the last year period.
Cash and cash equivalents stood at $20.22 million as on Mar. 31, 2017, up 44.37 percent or $6.21 million from $14.01 million on Mar. 31, 2016.
Working capital increases sharply
Evolution Petroleum Corporation has recorded an increase in the working capital over the last year. It stood at $21.48 million as at Mar. 31, 2017, up 171.33 percent or $13.56 million from $7.92 million on Mar. 31, 2016. Current ratio was at 8.51 as on Mar. 31, 2017, up from 1.89 on Mar. 31, 2016.
Days sales outstanding went down to 28 days for the quarter compared with 44 days for the same period last year.
At the same time, days payable outstanding went down to 106 days for the quarter from 255 for the same period last year.
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