Pioneer Energy Services (PES) saw its loss widen to $34.62 million, or $0.53 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $17.54 million, or $0.27 a share. On the other hand, adjusted net loss for the quarter widened to $18.86 million, or $0.29 a share from a loss of $18.51 million or $0.29 a share, a year ago. Revenue during the quarter plunged 36.40 percent to $68.35 million from $107.48 million in the previous year period. Gross margin for the quarter contracted 896 basis points over the previous year period to 24.38 percent. Operating margin for the quarter stood at negative 43.72 percent as compared to a negative 16.72 percent for the previous year period.
Operating loss for the quarter was $29.88 million, compared with an operating loss of $17.97 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.28 million compared with $18.83 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1271 basis points in the quarter to 4.81 percent from 17.52 percent in the last year period.
"With commodity prices remaining well above the lows seen in the first quarter, demand for our services has continued to improve," said Wm. Stacy Locke, president and chief executive officer of Pioneer Energy Services. "Higher activity that drove a notable improvement in our Production Services Segment in the third quarter is expected to continue through the fourth quarter and we are optimistic it will offset the seasonal decline we typically experience during that period due to reduced daylight hours, holidays and exhausted customer budgets.
Operating cash flow drops significantly
Pioneer Energy Services has generated cash of $7.64 million from operating activities during the nine month period, down 94.50 percent or $131.42 million, when compared with the last year period. The company has spent $22.84 million cash to meet investing activities during the nine month period as against cash outgo of $92.36 million in the last year period. It has incurred net capital expenditure of $22.84 million on net basis during the nine month period, down 75.33 percent or $69.75 million from year ago period.
Cash flow from financing activities was $10.74 million for the nine month period as against cash outgo of $45.95 million in the last year period.
Cash and cash equivalents stood at $9.70 million as on Sep. 30, 2016, down 72.80 percent or $25.98 million from $35.68 million on Sep. 30, 2015.
Working capital declines
Pioneer Energy Services has witnessed a decline in the working capital over the last year. It stood at $36.13 million as at Sep. 30, 2016, down 17.19 percent or $7.50 million from $43.63 million on Sep. 30, 2015. Current ratio was at 1.66 as on Sep. 30, 2016, up from 1.45 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 63 days for the quarter from 37 days for the last year period. Days sales outstanding went up to 111 days for the quarter compared with 79 days for the same period last year.
Days inventory outstanding has decreased to 7 days for the quarter compared with 12 days for the previous year period. At the same time, days payable outstanding went up to 55 days for the quarter from 54 for the same period last year.
Debt comes down marginally
Pioneer Energy Services has recorded a decline in total debt over the last one year. It stood at $399.51 million as on Sep. 30, 2016, down 2.56 percent or $10.49 million from $410 million on Sep. 30, 2015. Pioneer Drilling Co has recorded a decline in long-term debt over the last one year. It stood at $399.51 million as on Sep. 30, 2016, down 2.56 percent or $10.49 million from $410 million on Sep. 30, 2015. Total debt was 55.27 percent of total assets as on Sep. 30, 2016, compared with 43.20 percent on Sep. 30, 2015. Debt to equity ratio was at 1.59 as on Sep. 30, 2016, up from 1.05 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
