Noble Energy (NBL) saw its loss narrow to $144 million, or $0.33 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $283 million, or $0.67 a share. On the other hand, adjusted net loss for the quarter narrowed to $30 million, or $0.07 a share from a loss of $90 million or $0.21 a share, a year ago.
Revenue during the quarter grew 11.11 percent to $910 million from $819 million in the previous year period. Gross margin for the quarter expanded 184 basis points over the previous year period to 85.60 percent. Operating margin for the quarter stood at negative 27.47 percent as compared to a negative 57.02 percent for the previous year period.
Operating loss for the quarter was $250 million, compared with an operating loss of $467 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $645 million compared with $731 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1838 basis points in the quarter to 70.88 percent from 89.26 percent in the last year period.
David L. Stover, Noble Energy’s chairman, president and chief executive officer, commented, "Once again, the strength of our high-quality asset base and operational execution was on display in the third quarter. This was demonstrated by our continued outstanding production performance and cost control. Other recent strategically significant highlights include the successful IPO of the Noble Midstream business, the separation of our Marcellus Joint Venture, and the signing of the first sizable export contract to support Leviathan development. Year to date, we have operated our business within organic cash flows while also monetizing nearly $1.5 billion in assets. Improving our balance sheet has positioned our business for activity acceleration and allowed us to pay down debt. We have already added an additional two rigs to our Texas assets in the fourth quarter and I would expect that we will further increase activity in the near future. Tremendous performance has ensured a bright future for Noble Energy."
Operating cash flow drops significantlyNoble Energy has generated cash of $1,054 million from operating activities during the nine month period, down 29.07 percent or $432 million, when compared with the last year period. The company has spent $386 million cash to meet investing activities during the nine month period as against cash outgo of $2,393 million in the last year period. It has incurred net capital expenditure of $378 million on net basis during the nine month period, down 83.62 percent or $1,929 million from year ago period.
Cash flow from financing activities was $123 million for the nine month period, down 83.64 percent or $629 million, when compared with the last year period.
Cash and cash equivalents stood at $1,819 million as on Sep. 30, 2016, up 76.95 percent or $791 million from $1,028 million on Sep. 30, 2015.
Working capital increases sharply
Noble Energy has recorded an increase in the working capital over the last year. It stood at $1,249 million as at Sep. 30, 2016, up 185.16 percent or $811 million from $438 million on Sep. 30, 2015. Current ratio was at 1.82 as on Sep. 30, 2016, up from 1.21 on Sep. 30, 2015.
Days sales outstanding went down to 53 days for the quarter compared with 63 days for the same period last year.
At the same time, days payable outstanding went down to 705 days for the quarter from 871 for the same period last year.
Debt comes down marginallyNoble Energy has recorded a decline in total debt over the last one year. It stood at $7,854 million as on Sep. 30, 2016, down 2.23 percent or $179 million from $8,033 million on Sep. 30, 2015. Total debt was 34.95 percent of total assets as on Sep. 30, 2016, compared with 30.94 percent on Sep. 30, 2015. Debt to equity ratio was at 0.80 as on Sep. 30, 2016, up from 0.65 as on Sep. 30, 2015. 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
