RSP Permian, Inc. (RSPP) has reported an 89.02 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.98 million, or $0.01 a share in the quarter, compared with $8.97 million, or $0.10 a share for the same period last year. On an adjusted basis, net loss for the quarter was $0.76 million, when compared with net profit $13.47 million in the last year period.
Revenue during the quarter grew 16.09 percent to $93.62 million from $80.64 million in the previous year period. Gross margin for the quarter expanded 256 basis points over the previous year period to 84.86 percent. Total expenses were 85.85 percent of quarterly revenues, down from 90.77 percent for the same period last year. This has led to an improvement of 492 basis points in operating margin to 14.15 percent.
Operating income for the quarter was $13.25 million, compared with $7.44 million in the previous year period.
Steve Gray, Chief Executive Officer, commented, "We're pleased to report another strong quarter highlighted by our sequential double digit production growth and record low cash operating costs per barrel. Our recent horizontal wells appear to confirm the effectiveness of our enhanced completion designs. The excellent well results across our asset base along with our current record production led us to raise our annual production guidance for the second consecutive quarter. As a result of the increased rate of return on our capital, we began accelerating our drilling and completion pace during the third quarter with the addition of a third operated horizontal rig. We expect to add a fourth rig in early 2017."
Working capital drops significantly
RSP Permian, Inc. has witnessed a decline in the working capital over the last year. It stood at $12.31 million as at Sep. 30, 2016, down 74.71 percent or $36.34 million from $48.65 million on Sep. 30, 2015. Current ratio was at 1.17 as on Sep. 30, 2016, down from 1.48 on Sep. 30, 2015.
Days sales outstanding went down to 30 days for the quarter compared with 71 days for the same period last year.
Debt moves up marginally
RSP Permian, Inc. has witnessed an increase in total debt over the last one year. It stood at $722.72 million as on Sep. 30, 2016, up 3.45 percent or $24.12 million from $698.60 million on Sep. 30, 2015. Rsp Permian Inc has witnessed an increase in long-term debt over the last one year. It stood at $722.72 million as on Sep. 30, 2016, up 3.45 percent or $24.12 million from $698.60 million on Sep. 30, 2015. Total debt was 24.29 percent of total assets as on Sep. 30, 2016, compared with 24.83 percent on Sep. 30, 2015. Debt to equity ratio was at 0.39 as on Sep. 30, 2016, down from 0.42 as on Sep. 30, 2015. Interest coverage ratio improved to 1.01 for the quarter from 0.64 for the same period last year.
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