RSP PERMIAN INC (RSPP) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $38.93 million, or $ 0.26 a share in the quarter, against a net loss of $17.42 million, or $0.17 a share in the last year period. On an adjusted basis, net profit for the quarter was $24.21 million, when compared with net loss $16.23 million in the last year period.
Revenue during the quarter surged 204.45 percent to $169.93 million from $55.82 million in the previous year period. Gross margin for the quarter expanded 850 basis points over the previous year period to 85.05 percent. Operating margin for the quarter period stood at positive 32.59 percent as compared to a negative 25.70 percent for the previous year period.
Operating income for the quarter was $55.39 million, compared with an operating loss of $14.34 million in the previous year period.
Steve Gray, chief executive officer, commented, "I'm pleased to report solid quarterly results, particularly given we only recently closed SHEP II and assumed full operational control over our Delaware Basin assets. The second quarter will include the full contribution of these assets to our operating and financial results. Our operations team has made significant progress enhancing efficiency and coordinating infrastructure additions on the Delaware assets to accommodate higher activity levels during the second half of this year. We have accelerated the build-out of infrastructure projects in the second quarter on these properties and we anticipate adding a third horizontal rig in the Delaware Basin in May, bringing our total operated rig count to seven."
Working capital decreases marginally
RSP Permian Inc has witnessed a decline in the working capital over the last year. It stood at $32.91 million as at Mar. 31, 2017, down 2.59 percent or $0.87 million from $33.78 million on Mar. 31, 2016. Current ratio was at 1.29 as on Mar. 31, 2017, down from 1.45 on Mar. 31, 2016.
Days sales outstanding went down to 10 days for the quarter compared with 55 days for the same period last year.
Debt increases substantially
RSP Permian Inc has witnessed an increase in total debt over the last one year. It stood at $1,132.36 million as on Mar. 31, 2017, up 64.85 percent or $445.45 million from $686.90 million on Mar. 31, 2016. Rsp Permian Inc has witnessed an increase in long-term debt over the last one year. It stood at $1,132.36 million as on Mar. 31, 2017, up 64.85 percent or $445.45 million from $686.90 million on Mar. 31, 2016. Total debt was 19.78 percent of total assets as on Mar. 31, 2017, compared with 23.34 percent on Mar. 31, 2016. Debt to equity ratio was at 0.28 as on Mar. 31, 2017, down from 0.37 as on Mar. 31, 2016.
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