PIONEER ENERGY SERVICES (PES) saw its loss narrow to $25.12 million, or $0.33 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $27.70 million, or $0.43 a share. On the other hand, adjusted net loss for the quarter narrowed to $15.37 million, or $0.20 a share from a loss of $25.34 million or $0.39 a share, a year ago.
Revenue during the quarter grew 27.76 percent to $95.76 million from $74.95 million in the previous year period. Gross margin for the quarter contracted 621 basis points over the previous year period to 24.03 percent. Operating margin for the quarter stood at negative 19.71 percent as compared to a negative 30.70 percent for the previous year period.
Operating loss for the quarter was $18.87 million, compared with an operating loss of $23.01 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.98 million compared with $6.42 million in the prior year period. At the same time, adjusted EBITDA margin contracted 233 basis points in the quarter to 6.24 percent from 8.57 percent in the last year period.
"Generally improved oil prices and hedging of oil production has allowed operators to significantly increase capital spending," said Wm. Stacy Locke, President and chief executive officer of Pioneer Energy Services. "Steady rig count growth in the broad market and an increase in completion of wells has led to higher demand in all of our businesses. We expect activity levels to steadily improve throughout the year.
Operating cash flow turns negativePIONEER ENERGY SERVICES has spent $21.82 million cash to meet operating activities during the quarter as against cash inflow of $9.63 million in the last year period. The company has spent $14.42 million cash to meet investing activities during the quarter as against cash outgo of $5.06 million in the last year period. It has incurred capital expenditure of $17.54 million on net basis during the quarter, up 246.88 percent or $12.48 million from year ago period.
Cash flow from financing activities was $33.33 million for the quarter as against cash outgo of $0.06 million in the last year period.
Cash and cash equivalents stood at $7.29 million as on Mar. 31, 2017, down 60.95 percent or $11.38 million from $18.67 million on Mar. 31, 2016.
Working capital increases sharply
PIONEER ENERGY SERVICES has recorded an increase in the working capital over the last year. It stood at $53.12 million as at Mar. 31, 2017, up 29.21 percent or $12.01 million from $41.11 million on Mar. 31, 2016. Current ratio was at 1.84 as on Mar. 31, 2017, up from 1.66 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 58 days for the quarter from 78 days for the last year period. Days sales outstanding went down to 75 days for the quarter compared with 88 days for the same period last year.
Days inventory outstanding has decreased to 7 days for the quarter compared with 15 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 26 for the same period last year.
Debt comes down marginallyPIONEER ENERGY SERVICES has recorded a decline in total debt over the last one year. It stood at $373.63 million as on Mar. 31, 2017, down 3.61 percent or $13.99 million from $387.62 million on Mar. 31, 2016. PIONEER ENERGY SERVICES has recorded a decline in long-term debt over the last one year. It stood at $373.63 million as on Mar. 31, 2017, down 3.61 percent or $13.99 million from $387.62 million on Mar. 31, 2016. Total debt was 52.75 percent of total assets as on Mar. 31, 2017, compared with 49.28 percent on Mar. 31, 2016. Debt to equity ratio was at 1.45 as on Mar. 31, 2017, up from 1.23 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
