Evolution Petroleum Corp (EPM) has reported an 180.30 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $2.31 million, or $0.07 a share in the quarter, compared with $0.82 million, or $0.02 a share for the same period last year. Revenue during the quarter grew 28.79 percent to $8.53 million from $6.62 million in the previous year period. Gross margin for the quarter expanded 755 basis points over the previous year period to 73.12 percent. Operating margin for the quarter period stood at positive 43.09 percent as compared to a negative 6.87 percent for the previous year period.
Operating income for the quarter was $3.68 million, compared with an operating loss of $0.45 million in the previous year period.
Randy Keys, president and chief executive officer, said "The Delhi field turned in another solid performance this quarter. Gross production increased by over 200 BOPD from the prior quarter. We continue to see the benefits from diverse conformance workovers and performance enhancement projects designed to improve efficiency in use of the recycle CO2 stream. The combined results have been stellar, as gross production has increased from below 6,000 BOPD to over 7,500 BOPD in the span of less than two years. Further, these results have been achieved while reducing purchased CO2 volumes. We began selling NGL's from the NGL recovery plant after the end of the quarter, so this quarter's production consists entirely of light Louisiana Sweet ("LLS") crude oil from the field. This continuing positive performance of the Delhi field bodes well for our long-term recovery of reserves from the field."
Operating cash flow improves significantly
Evolution Petroleum Corp has generated cash of $5.85 million from operating activities during the first half, up 29.84 percent or $1.35 million, when compared with the last year period. The company has spent $8.33 million cash to meet investing activities during the first six months as against cash outgo of $7.25 million in the last year period.
The company has spent $12.45 million cash to carry out financing activities during the first six months as against cash outgo of $1.05 million in the last year period.
Cash and cash equivalents stood at $19.16 million as on Dec. 31, 2016, up 17.34 percent or $2.83 million from $16.33 million on Dec. 31, 2015.
Working capital increases sharply
Evolution Petroleum Corp has recorded an increase in the working capital over the last year. It stood at $18.61 million as at Dec. 31, 2016, up 35.53 percent or $4.88 million from $13.73 million on Dec. 31, 2015. Current ratio was at 5.36 as on Dec. 31, 2016, up from 3 on Dec. 31, 2015.
Days sales outstanding went down to 31 days for the quarter compared with 36 days for the same period last year.
At the same time, days payable outstanding went down to 119 days for the quarter from 153 for the same period last year.
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