Murphy Oil Corporation (MUR) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $58.46 million, or $ 0.34 a share in the quarter, against a net loss of $198.80 million, or $1.16 a share in the last year period. On the other hand, adjusted net loss for the quarter narrowed to $10.20 million, or $0.06 a share from a loss of $112.80 million or $0.66 a share, a year ago.
Revenue during the quarter surged 54.46 percent to $664.62 million from $430.30 million in the previous year period. Operating margin for the quarter period stood at positive 50.20 percent as compared to a negative 54.66 percent for the previous year period.
However, the adjusted EBITDA for the quarter stood at $435.70 million compared with $146.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 3151 basis points in the quarter to 65.56 percent from 34.05 percent in the last year period.
"Murphy had strong first quarter results as we exceeded production guidance with high uptime performance across all our assets. Our production is outstanding considering that we brought online fewer wells than planned in our Eagle Ford Shale asset, as our base production and new wells during the quarter both exceeded our expectations. I continue to be pleased with the significant free cash flow generated by our offshore business. We also addressed the tax status regarding future foreign earnings repatriation, which will allow for additional cash management flexibility across our company," stated Roger W. Jenkins, president and chief executive officer.
Operating cash flow improves significantly
Murphy Oil Corporation has generated cash of $305.51 million from operating activities during the quarter, up 569.63 percent or $259.89 million, when compared with the last year period. The company has spent $246.98 million cash to meet investing activities during the quarter as against cash outgo of $193.95 million in the last year period. It has incurred net capital expenditure of $147.53 million on net basis during the quarter, down 29.74 percent or $62.46 million from year ago period.
The company has spent $58.60 million cash to carry out financing activities during the quarter as against cash inflow of $304.68 million in the last year period.
Cash and cash equivalents stood at $875.90 million as on Mar. 31, 2017, up 107.04 percent or $452.84 million from $423.06 million on Mar. 31, 2016.
Working capital drops significantly
Murphy Oil Corporation has witnessed a decline in the working capital over the last year. It stood at $141.20 million as at Mar. 31, 2017, down 56.04 percent or $179.97 million from $321.17 million on Mar. 31, 2016. Current ratio was at 1.10 as on Mar. 31, 2017, down from 1.23 on Mar. 31, 2016.
Days sales outstanding went down to 35 days for the quarter compared with 110 days for the same period last year.
Debt comes down
Murphy Oil Corporation has recorded a decline in total debt over the last one year. It stood at $2,984 million as on Mar. 31, 2017, down 12.97 percent or $444.60 million from $3,428.60 million on Mar. 31, 2016. Total debt was 29.05 percent of total assets as on Mar. 31, 2017, compared with 29.92 percent on Mar. 31, 2016. Debt to equity ratio was at 0.60 as on Mar. 31, 2017, down from 0.66 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
