RSP Permian, Inc. (RSPP) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $1.38 million, or $ 0.01 a share in the quarter, against a net loss of $20.75 million, or $0.21 a share in the last year period. On an adjusted basis, net profit for the quarter was $13.40 million, when compared with $12.07 million in the last year period.
Revenue during the quarter surged 67.24 percent to $122.93 million from $73.51 million in the previous year period. Gross margin for the quarter expanded 235 basis points over the previous year period to 86.64 percent. Operating margin for the quarter period stood at positive 24.32 percent as compared to a negative 29.34 percent for the previous year period.
Operating income for the quarter was $29.89 million, compared with an operating loss of $21.56 million in the previous year period.
Steve Gray, chief executive officer, commented, "I am pleased to report our fourth quarter and full year results, highlighted by annual production growth of nearly 40% with 25% less in capital expenditures as compared to last year. Importantly, we continued to operate efficiently with strong cash margins and record low drill-bit finding and development costs. During the year, we reduced our activity levels in response to depressed oil prices early in the year and remained patient on M&A opportunities until we identified high quality properties that would compete for capital in our existing portfolio."
Working capital increases sharply
RSP Permian, Inc. has recorded an increase in the working capital over the last year. It stood at $667.99 million as at Dec. 31, 2016, up 506.51 percent or $557.85 million from $110.14 million on Dec. 31, 2015. Current ratio was at 7.17 as on Dec. 31, 2016, up from 2.42 on Dec. 31, 2015.
Debt increases substantially
RSP Permian, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,132.28 million as on Dec. 31, 2016, up 64.93 percent or $445.76 million from $686.51 million on Dec. 31, 2015. Rsp Permian Inc has witnessed an increase in long-term debt over the last one year. It stood at $1,132.28 million as on Dec. 31, 2016, up 64.93 percent or $445.76 million from $686.51 million on Dec. 31, 2015. Total debt was 22.66 percent of total assets as on Dec. 31, 2016, compared with 23.04 percent on Dec. 31, 2015. Debt to equity ratio was at 0.33 as on Dec. 31, 2016, down from 0.37 as on Dec. 31, 2015.
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