Home Sports Australian Oil & Gas Company (ASX:ATS) Raises Q3 2022 Profit – The...

Australian Oil & Gas Company (ASX:ATS) Raises Q3 2022 Profit – The Market Herald

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  • Australis Oil and Gas (ATS) sees another positive cash flow in 2022, ending Q3 with a cash balance of US$8.3 million (A$12.9 million)
  • EBITDA jumped 80 percent from the previous quarter to US$1.8 million, while revenue increased one percent to US$7.4 million.
  • Netback increased 21 percent to US$3.5 million and the company sold eight percent more barrels of oil compared to the previous quarter.
  • The company also reduced its net debt from US$6.7 million at the beginning of the year to US$4.7 million by September 30.
  • ATS shares rose 5.71 percent to trade at 3.7 cents at the close

Australis Oil and Gas ( ATS ) has recorded another positive cash flow in 2022 after ending Q3 with a cash balance of US$8.3 million (A$12.9 million).

Australis sold 89,600 barrels of oil in the third quarter, up eight percent from the previous quarter.

Net reserves did decline by about 2,000 barrels, but production rose 6 percent, helped by production from the recently spudded Painter 5H well.

Revenue increased one percent to US$7.4 million, including a hedge loss of US$1.1 million on the required oil price hedging credit facility (down from US$1.8 million in 2Q2022) .

Net income, or gross profit from the sale of oil, increased 21 percent to $3.5 million, helped by a reduction in required well repairs. Only two wells required maintenance, which reduced operating costs.

EBITDA increased 80 percent from the second quarter to $1.8 million, which the company attributed to higher sales and lower costs in the quarter.

The company managed to reduce its net debt from US$6.7 million at the beginning of the year to US$4.7 million by September 30.

ATS’ outstanding debt under Macquarie’s credit facility decreased by US$1 million in the quarter, bringing the balance to US$13 million as of September 30.

In addition, the company received an 18-month extension of the facility’s maturity until May 2025.

Capital expenditure to date is US$3.3 million.

ATS shares rose 5.71 percent to trade at 3.7 cents at the market close.

https://themarketherald.com.au/australia-oil-and-gas-asxats-posts-earnings-increase-for-q3-2022-2022-10-26/

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