Evolution Petroleum Corporation (EPM) has reported 41.25 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $1.82 million, or $0.02 a share in the quarter, compared with $3.09 million, or $0.09 a share for the same period last year. Revenue during the quarter went up marginally by 2.91 percent to $7.59 million from $7.38 million in the previous year period. Gross margin for the quarter expanded 461 basis points over the previous year period to 69.12 percent. Total expenses were 64.08 percent of quarterly revenues, down from 74.98 percent for the same period last year. This has led to an improvement of 1090 basis points in operating margin to 35.92 percent.
Operating income for the quarter was $2.73 million, compared with $1.85 million in the previous year period.
Randy Keys, president and chief executive officer, said: "The decisions to redeem our preferred stock and increase the common stock dividend reflect our consistent focus on delivering value to our common shareholders. Our balance sheet strength, with almost $20 million of net cash, combined with the end of the capital spending on the NGL plant, the anticipated increase in field cash flow and the outstanding performance of the Delhi field, gives us the confidence to increase the dividend at this time. The Board of Directors plans to again review the dividend in 2017 based on results from the NGL plant start-up and the future outlook for crude oil prices. We ended the past fiscal year with our best financial position since this industry downturn began two years ago, and our financial position and outlook have only improved during the quarter."
Operating cash flow drops significantlyEvolution Petroleum Corp has generated cash of $1.47 million from operating activities during the quarter, down 34.08 percent or $ 0.76 million, when compared with the last year period. The company has spent $5.16 million cash to meet investing activities during the quarter as against cash outgo of $6.04 million in the last year period.
The company has spent $2.15 million cash to carry out financing activities during the quarter as against cash inflow of $0.01 million in the last year period.
Cash and cash equivalents stood at $28.24 million as on Sep. 30, 2016, up 73.05 percent or $11.92 million from $16.32 million on Sep. 30, 2015.
Working capital increases
Evolution Petroleum Corp has recorded an increase in the working capital over the last year. It stood at $19.65 million as at Sep. 30, 2016, up 20.84 percent or $3.39 million from $16.26 million on Sep. 30, 2015. Current ratio was at 2.73 as on Sep. 30, 2016, down from 5.05 on Sep. 30, 2015.
Days sales outstanding went down to 34 days for the quarter compared with 36 days for the same period last year.
At the same time, days payable outstanding went up to 210 days for the quarter from 190 for the same period last year.
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