Erin Energy (ERN) saw its loss narrow to $23.47 million, or $0.11 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $58.68 million, or $0.28 a share.
Revenue during the quarter went down marginally by 0.17 percent to $28.62 million from $28.67 million in the previous year period. Gross margin for the quarter expanded 935 basis points over the previous year period to 12.90 percent.
Operating loss for the quarter was $21.82 million, compared with an operating loss of $53.42 million in the previous year period.
Segun Omidele, chief executive officer commented: "In the third quarter, our strategy remained focused on restructuring our balance sheet and growing our production. We had success in lowering some of our outstanding AP balances and our effort to raise additional capital for our next drilling campaign is progressing well with the expectation that drilling activities will commence soon."
Operating cash flow turns positiveErin Energy has generated cash of $6.68 million from operating activities during the nine month period as against cash outgo of $16.15 million in the last year period. The company has spent $16.48 million cash to meet investing activities during the nine month period as against cash outgo of $83.16 million in the last year period.
Cash flow from financing activities was $5.57 million for the nine month period, down 92.81 percent or $71.96 million, when compared with the last year period.
Cash and cash equivalents stood at $8.30 million as on Sep. 30, 2016, up 97.67 percent or $4.10 million from $4.20 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Erin Energy was negative $255.14 million on Sep. 30, 2016 compared with negative $200.21 million on Sep. 30, 2015. Current ratio was at 0.07 as on Sep. 30, 2016, down from 0.21 on Sep. 30, 2015.
Days sales outstanding went up to 5 days for the quarter compared with 3 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 103 days for the previous year period.
Debt comes down significantlyErin Energy has recorded a decline in total debt over the last one year. It stood at $86.22 million as on Sep. 30, 2016, down 62.69 percent or $144.88 million from $231.09 million on Sep. 30, 2015. Total debt was 25.18 percent of total assets as on Sep. 30, 2016, compared with 32.35 percent on Sep. 30, 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: editor@irisindia.net
