W&T Offshore, Inc. (WTI) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $45.93 million, or $ 0.48 a share in the quarter, against a net loss of $477.57 million, or $6.29 a share in the last year period. On an adjusted basis, net loss for the quarter was $22.57 million, when compared with $60.02 million in the last year period.
Revenue during the quarter dropped 14.91 percent to $107.40 million from $126.23 million in the previous year period. Gross margin for the quarter contracted 97 basis points over the previous year period to 59.81 percent.
Operating loss for the quarter was $58.28 million, compared with an operating loss of $468.57 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $52.48 million compared with $61.37 million in the prior year period. At the same time, adjusted EBITDA margin improved 24 basis points in the quarter to 48.86 percent from 48.62 percent in the last year period.
Tracy W. Krohn, W&T Offshore's chairman and chief executive officer, stated, "We are pleased to have received the support of our shareholders and senior noteholders in completing our Exchange Transaction, significantly improving our liquidity which in turn will allow us to turn our focus toward new capital projects. While operating margins are still below our historic levels, they have improved from early in the year, allowing us to expand our capital program in 2016, currently estimated at $60 million, and pursue projects that were delayed when margins began declining rapidly. We are currently working on our plan for 2017 and expect to increase our capital budget to levels well above 2016 expenditures. We intend to devote more capital to drilling and completing new wells along with an expanded recompletion program."
Operating cash flow turns negative
W&T Offshore, Inc. has spent $9.17 million cash to meet operating activities during the nine month period as against cash inflow of $134.79 million in the last year period.
The company has spent $60.06 million cash to meet investing activities during the nine month period as against cash outgo of $259.46 million in the last year period.
Cash flow from financing activities was $57.16 million for the nine month period, down 47.30 percent or $51.30 million, when compared with the last year period.
Cash and cash equivalents stood at $73.35 million as on Sep. 30, 2016, up 882.86 percent or $65.89 million from $7.46 million on Sep. 30, 2015.
Working capital remains negative
Working capital of W&T Offshore, Inc. was negative $80.08 million on Sep. 30, 2016 compared with negative $136.40 million on Sep. 30, 2015. Current ratio was at 0.64 as on Sep. 30, 2016, up from 0.48 on Sep. 30, 2015.
Days sales outstanding went down to 59 days for the quarter compared with 62 days for the same period last year.
At the same time, days payable outstanding went up to 287 days for the quarter from 280 for the same period last year.
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