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Highlights

  • InPlay Oil Corp. (TSX: IPO) saw a 9% decline in its net debt to CAD 41.8 million in Q2 FY23.
  • Its revenue dropped by 40.4% in quarter, mainly because of decrease in volumes sold at a reduced realized price.

Based in Calgary (Alberta), InPlay Oil Corp. (TSX: IPO) is an oil development and production company involved in development, acquisition and exploration of petroleum and natural gas properties.

In Q2 FY23, InPlay Oil witnessed a fall of 9% in its net debt to CAD 41.8 million, as compared to CAD 46.2 million in the first quarter of the year. Also, the company’s net debt to EBITDA leverage ratio stood at 0.4x, as of 30 June 2023, versus 0.5x in the previous corresponding period.

However, its revenue dropped by 40.4% in the second quarter of 2023, mainly because of a decrease in volumes sold at a reduced realized price. Furthermore, the firm’ total expenses increased to CAD 29.3 million in Q2 2023. Its profit before tax stands at CAD 7.4 million for the quarter, versus CAD 32.9 million in pcp.

Consequently, InPlay Oil reported a decreased net profit of CAD 4.3 million compared to CAD 29.0 million in pcp.

IPO shares traded at a dividend yield of 6.72%, at the last closing price of CAD 2.64 on 19 September 2023. Also, InPlay Oil has increased its dividend by 6.8% to CAD 0.01958 per share per month from CAD 0.01833 per share per month, with effect from October 2022.

For the full FY23, the company expects its annual production to be between 9,100 and 9,500 boe/d. Also, IPO is expecting the free adjusted funds flow to be between CAD 23 million and CAD 33 million for FY 2023.                                               

Top 10 Shareholders

A total of 25.87% of the shareholding in the firm are held by its top ten shareholders. While JOG Capital, Inc. holds maximum shares in the company at around ­­­23.37%, Samarang Asset Management S.A.  owns about 0.56% of the total shareholding.

 Stock Price Performance
The company’s stock has gained 4.76% over the last one month. It has increased by approximately 9.09% in the last three months. The stock’s 52-week high and low price stand at CAD 3.74 and CAD 2.25, respectively.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 19, 2023. The reference data in this report has been partly sourced from EODHD/Others.