Image source: © Peshkov | Megapixl.com

Highlights

  • The revenue of the company dropped by 15.5% in Q1 FY23.
  • Despite lower net profit, the company will pay its shareholders a monthly cash dividend of CAD 0.015 per common share on July 31, 2023.
  • The company has reported rising total production along industry beating margins and minimized its net debt in Q1 2023.

TSX-listed oil development and production company, InPlay Oil Corp. (TSX: IPO) has been building its position in the energy sector with a strong vision to acquire, explore, and develop petroleum and natural gas properties. It is also involved in the production and sale of natural gas, crude oil, and natural gas liquids.

For the first quarter of FY23, the company posted a 15.5% annual drop in revenue. This was primarily because lower volumes were sold at a lower realized price during the period. Furthermore, the total expense increased to CAD 29.70 million for the quarter due to higher operating expenses and higher depletion and depreciation cost. Overall, the impact was seen on the profit before tax as it decreased to CAD 9.82 million as compared to CAD 12.82 million in the previous corresponding period. IPO ended the quarter with net profit of CAD 9.29 million, down from CAD 18.77 million in Q1 2022.

Despite lower net profit, the company announced recently to pay its shareholders a monthly cash dividend of CAD 0.015 per common share on July 31, 2023.

Interestingly, the company has reported rising total production along with industry beating margins and minimized its net debt in Q1 2023, which is a key positive.

 

Outlook for FY23

The company believes that it will be able to secure free adjusted funds flow in between CAD 37 million and CAD 48 million for FY 2023. It is expecting the annual production to be between 9,500 boe/d and 10,500 boe/d (barrels of oil equivalent per day) for the current financial year.                                                 

Top Shareholders

For InPlay Oil, the top five shareholders constitute around 25.49% of the total shareholding. Maximum stake of around ­­­23.48% is held by JOG Capital, Inc. in the company. Samarang Asset Management S.A. and Bartole (Douglas J) hold 0.57% and 0.53% shares in the company, respectively.  

Stock price performance

The company share price levelled up by around 4.01% in the last one month, while it has decreased by 10.06% over the last three months. Its 52-week high and 52-week low price stand at CAD 4.00 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 July 11, 2023. The reference data in this report has been partly sourced from EODHD/Others.