Vaalco Energy Inc (EGY) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $4.26 million, or $ 0.07 a share in the quarter, against a net loss of $7.62 million, or $0.13 a share in the last year period. Revenue during the quarter surged 93.75 percent to $21.27 million from $10.98 million in the previous year period.
Operating income for the quarter was $8.15 million, compared with an operating loss of $13.52 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.41 million compared to negative $10.71 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 48.96 percent for the quarter compared to negative 97.57 percent in the last year period.
Cary Bounds, VAALCO’s chief executive officer commented: “We continue to enhance value by delivering solid production results and minimizing costs. We successfully completed two well interventions utilizing a cost effective hydraulic workover unit versus the traditional method of mobilizing a more expensive drilling rig. VAALCO produced 4,622 BOPD of net production which, coupled with improved pricing, allowed us to grow operating income and Adjusted EBITDAX significantly versus the fourth quarter 2016. Our focus in 2017 is to maximize margins through operational excellence and continue to execute on our corporate strategy while Bounds continued, “Financially, in the first quarter we reported earnings per share of $0.07, our highest earnings per share since the second quarter of 2014. Operationally, we delivered production above the high end of our guidance range and costs at the low end of the guidance range. We continue our evaluation of development opportunities on our offshore Gabon asset, and we are seeking similar growth opportunities in West Africa, where we can leverage our strong operational and technical expertise. We look to carry the positive momentum from the first quarter results forward into 2017.”
Operating cash flow turns positive
Vaalco Energy Inc has generated cash of $4.10 million from operating activities during the quarter as against cash outgo of $0.18 million in the last year period. The company has spent $0.78 million cash to meet investing activities during the quarter as against cash outgo of $1.02 million in the last year period.
Cash flow from financing activities was almost stable for the quarter at $0.46 million, when compared with the previous year period.
Cash and cash equivalents stood at $24.24 million as on Mar. 31, 2017, up 0.37 percent or $0.09 million from $24.16 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Vaalco Energy Inc was negative $11.67 million on Mar. 31, 2017 compared with negative $8.12 million on Mar. 31, 2016. Current ratio was at 0.77 as on Mar. 31, 2017, down from 0.88 on Mar. 31, 2016.
Days sales outstanding went down to 84 days for the quarter compared with 257 days for the same period last year.
Debt remains almost stable
Total debt of Vaalco Energy Inc remained almost stable for the quarter at $14.95 million, when compared with the last year period. Short-term debt stood at $8.33 million as on Mar. 31, 2017. Total debt was 18.69 percent of total assets as on Mar. 31, 2017, compared with 12.85 percent on Mar. 31, 2016. Debt to equity ratio was at 3.67 as on Mar. 31, 2017, up from 0.80 as on Mar. 31, 2016.
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