Anadarko Petroleum Corporation (APC) saw its loss narrow to $318 million, or $0.58 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1,034 million, or $2.03 a share. On the other hand, adjusted net loss for the quarter narrowed to $330 million, or $0.60 a share from a loss of $569 million or $1.12 a share, a year ago.
Revenue during the quarter surged 125.03 percent to $3,767 million from $1,674 million in the previous year period. Gross margin for the quarter expanded 910 basis points over the previous year period to 83.83 percent. Operating margin for the quarter stood at negative 2.92 percent as compared to a negative 51.61 percent for the previous year period.
Operating loss for the quarter was $110 million, compared with an operating loss of $864 million in the previous year period.
"The first quarter of 2017 provides a clear picture of the power of our streamlined portfolio and the three ‘Ds’, with record oil sales volume, significantly improved margins and strong cash flow," said Al Walker, Anadarko Chairman, President and CEO. "We have largely completed our divestiture program and ended the quarter with nearly $6 billion of cash on hand. These actions have increased our liquids product mix which, combined with the strengthening of commodity prices, substantially expanded our margins year over year. During the quarter, we continued to increase activity in the Delaware and DJ basins, adding six rigs to bring our current total to 21 across the U.S. onshore. In March, we also announced a 1.5-billion-barrel increase to our estimated net resources in the two basins, which now total more than 5 billion BOE."
Operating cash flow turns positive
Anadarko Petroleum Corporation has generated cash of $1,123 million from operating activities during the quarter as against cash outgo of $137 million in the last year period.
Cash flow from investing activities was $1,722 million for the quarter as against cash outgo of $973 million in the last year period.
The company has spent $198 million cash to carry out financing activities during the quarter as against cash inflow of $3,119 million in the last year period.
Cash and cash equivalents stood at $5,831 million as on Mar. 31, 2017, up 97.86 percent or $2,884 million from $2,947 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Anadarko Petroleum Corporation has turned positive to $3,945 million on Mar. 31, 2017 from negative $890 million on Mar. 31, 2016. Current ratio was at 2.05 as on Mar. 31, 2017, up from 0.87 on Mar. 31, 2016.
Days sales outstanding went down to 48 days for the quarter compared with 132 days for the same period last year.
Debt comes down
Anadarko Petroleum Corporation has recorded a decline in total debt over the last one year. It stood at $15,326 million as on Mar. 31, 2017, down 18.27 percent or $3,425 million from $18,751 million on Mar. 31, 2016. Total debt was 34.29 percent of total assets as on Mar. 31, 2017, compared with 39.13 percent on Mar. 31, 2016. Debt to equity ratio was at 1.02 as on Mar. 31, 2017, down from 1.28 as on Mar. 31, 2016.
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