Dawson Geophysical Company (DWSN) saw its loss widen to $7.19 million, or $0.33 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.94 million, or $0.23 a share.
Revenue during the quarter plunged 45.46 percent to $30.07 million from $55.13 million in the previous year period. Operating margin for the quarter stood at negative 37.52 percent as compared to a negative 14.77 percent for the previous year period.
Operating loss for the quarter was $11.28 million, compared with an operating loss of $8.14 million in the previous year period.
Stephen C. Jumper, president and chief executive officer, said, “Demand for seismic data acquisition services in North America and worldwide continues to be soft in response to low and uncertain oil prices and reduced client expenditures. During the quarter ended December 31, 2016, oil prices averaged approximately $49 per barrel, an increase from the September 30, 2016 quarter average of approximately $45 per barrel. While encouraging, it remains to be determined if the recent strengthening in oil prices can be sustained, and the price increases have yet to result in a meaningful increase in demand for our services. As we experienced uncertainty in oil and natural gas prices during our first three quarters of 2016, our client base continues to take a cautious approach to their capital spending. Based on currently available information, seismic service demand levels and the winter season in Canada, we believe we will continue to operate four to six crews in the United States and Canada through the first quarter of 2017. Visibility beyond the first quarter of 2017 remains unclear. In response to these factors, we will continue our on-going effort to control costs and maintain a strong balance sheet, our experienced personnel and our position as a leading onshore seismic data acquisition company in North America.”
Working capital declines
Dawson Geophysical Company has witnessed a decline in the working capital over the last year. It stood at $60.73 million as at Dec. 31, 2016, down 14.52 percent or $10.32 million from $71.05 million on Dec. 31, 2015. Current ratio was at 5.05 as on Dec. 31, 2016, up from 3.47 on Dec. 31, 2015.
Debt comes down significantly
Dawson Geophysical Company has recorded a decline in total debt over the last one year. It stood at $2.36 million as on Dec. 31, 2016, down 77.95 percent or $8.33 million from $10.69 million on Dec. 31, 2015. Total debt was 1.26 percent of total assets as on Dec. 31, 2016, compared with 4.31 percent on Dec. 31, 2015. Debt to equity ratio was at 0.01 as on Dec. 31, 2016, down from 0.05 as on Dec. 31, 2015.
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