VAALCO Energy, Inc (EGY) saw its loss narrow to $3.64 million, or $0.06 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $80.78 million, or $1.38 a share. Revenue during the quarter dropped 12.54 percent to $15.33 million from $17.52 million in the previous year period.
Operating income for the quarter was $0.82 million, compared with an operating loss of $64.69 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.15 million compared with $3.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 482 basis points in the quarter to 14.03 percent from 18.86 percent in the last year period.
Cary Bounds, VAALCO’s Chief Executive Officer commented: “I am proud of the talented team at VAALCO and commend them for the meaningful accomplishments we were able to achieve together in 2016. We operated in a safe and environmentally responsible manner without a recordable incident in 2016. We successfully completed two well interventions utilizing a more cost effective hydraulic workover unit versus the traditional method of mobilizing a drilling rig and restored over 1,000 BOPD of net production. We added additional interest in our Etame Marin block offshore Gabon through an acquisition. We were able to replace reserves almost equal to our production rate, while spending no capital on drilling new wells. In sum, we were able to execute on our corporate strategy and enhance value through operational successes, cost reductions and opportunistic transactions.”
Operating cash flow turns negative
VAALCO Energy, Inc has spent $3.45 million cash to meet operating activities during the year as against cash inflow of $38.88 million in the last year. The company has spent $1.29 million cash to meet investing activities during the year as against cash outgo of $83.01 million in the last year. It has incurred net capital expenditure of $13.57 million on net basis during the year, down 79.95 percent or $54.10 million from year ago.
The company has spent $0.14 million cash to carry out financing activities during the year as against cash inflow of $0.44 million in the last year period.
Cash and cash equivalents stood at $20.47 million as on Dec. 31, 2016, down 19.26 percent or $4.88 million from $25.36 million on Dec. 31, 2015.
Working capital remains negative
Working capital of VAALCO Energy, Inc was negative $17.08 million on Dec. 31, 2016 compared with negative $2.97 million on Dec. 31, 2015. Current ratio was at 0.69 as on Dec. 31, 2016, down from 0.96 on Dec. 31, 2015.
Debt comes down marginally
VAALCO Energy, Inc has recorded a decline in total debt over the last one year. It stood at $14.44 million as on Dec. 31, 2016, down 3.73 percent or $0.56 million from $15 million on Dec. 31, 2015. Short-term debt stood at $7.50 million as on Dec. 31, 2016. Total debt was 17.82 percent of total assets as on Dec. 31, 2016, compared with 12.10 percent on Dec. 31, 2015. 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: [email protected]
