Noble Energy, Inc. (NBL) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $36 million, or $ 0.08 a share in the quarter, against a net loss of $287 million, or $0.67 a share in the last year period. On the other hand, adjusted net loss for the quarter narrowed to $23 million, or $0.05 a share from a loss of $228 million or $0.53 a share, a year ago.
Revenue during the quarter surged 43.09 percent to $1,036 million from $724 million in the previous year period. Gross margin for the quarter expanded 882 basis points over the previous year period to 86.58 percent. Operating margin for the quarter period stood at positive 3.38 percent as compared to a negative 58.29 percent for the previous year period.
Operating income for the quarter was $35 million, compared with an operating loss of $422 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $600 million compared with $518 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1363 basis points in the quarter to 57.92 percent from 71.55 percent in the last year period.
David L. Stover, Noble Energy's chairman, president and chief executive officer, commented, "Noble Energy is off to a great start in 2017, with strong operational and financial performance and importantly, numerous recent strategic accomplishments. Our top-tier U.S. onshore assets and execution are delivering ahead of plan as a result of drilling advancements in all basins and continued industry-leading well performance. During the second quarter, we are expecting volume growth in each of our U.S. onshore liquids assets. This is driven by an increased completion schedule, including the impact of the Clayton Williams Energy transaction. Offshore, we are maximizing the cash flow from our existing assets, while progressing the recently-sanctioned Leviathan major project. With our continued superior execution, I am confident that we will deliver industry-leading performance throughout this year."
Operating cash flow improves significantly
Noble Energy, Inc. has generated cash of $536 million from operating activities during the quarter, up 113.55 percent or $285 million, when compared with the last year period.
The company has spent $863 million cash to meet investing activities during the quarter as against cash outgo of $264 million in the last year period. It has incurred capital expenditure of $547 million on net basis during the quarter, up 107.20 percent or $283 million from year ago period.
The company has spent $66 million cash to carry out financing activities during the quarter as against cash outgo of $62 million in the last year period.
Cash and cash equivalents stood at $787 million as on Mar. 31, 2017, down 17.42 percent or $166 million from $953 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Noble Energy, Inc. has turned negative to $48 million on Mar. 31, 2017 from positive $486 million on Mar. 31, 2016. Current ratio was at 0.97 as on Mar. 31, 2017, down from 1.30 on Mar. 31, 2016.
Days sales outstanding went down to 42 days for the quarter compared with 62 days for the same period last year.
At the same time, days payable outstanding went up to 655 days for the quarter from 603 for the same period last year.
Debt comes down
Noble Energy, Inc. has recorded a decline in total debt over the last one year. It stood at $6,995 million as on Mar. 31, 2017, down 11.25 percent or $887 million from $7,882 million on Mar. 31, 2016. Total debt was 33.30 percent of total assets as on Mar. 31, 2017, compared with 33.67 percent on Mar. 31, 2016. Debt to equity ratio was at 0.73 as on Mar. 31, 2017, down from 0.78 as on Mar. 31, 2016.
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