Thu, May 15, 6:25 PM (39 days ago)
**Permex Petroleum Corporation (Ticker: OIL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $295,906,000, a significant increase from $30,870,000 in Q1 2024, driven by resumed oil production at the Breedlove field. - **Net Loss:** Q1 2025 net loss was $1,313,137,000, compared to $415,355,000 in Q1 2024, primarily due to higher operating expenses and interest expenses. - **Operating Expenses:** Q1 2025 operating expenses were $1,135,167,000, up from $451,842,000 in Q1 2024, largely due to increased general and administrative expenses. - **Cash Flow:** Q1 2025 saw a net cash used in operating activities of $1,671,224,000, compared to $183,021,000 in Q1 2024. **Profit Margins:** - **Operating Margin:** Negative, with operating losses of $839,261,000 in Q1 2025 compared to $420,972,000 in Q1 2024. - **Net Margin:** Negative, with net losses as mentioned above. **Earnings Changes:** - **Earnings per Share (EPS):** Basic and diluted loss per share was $2.38 in Q1 2025, compared to $0.75 in Q1 2024. **Quarterly Performance Discussion:** - **Operational Highlights:** Resumed production at the Breedlove field, increased general and administrative expenses, and higher interest expenses. - **Financial Highlights:** Significant increase in revenue but also a substantial increase in net loss due to higher expenses. **Trends and Uncertainties:** - **Positive Trends:** Increased oil production and revenue. - **Negative Trends:** Rising operating expenses and interest expenses. - **Uncertainties:** Dependence on successful capital raising efforts and market conditions. **Future Operations Impact:** - **Capital Expenditures:** The company plans to spend approximately $6 million in capital expenditures towards developing proved undeveloped reserves during the 2025 fiscal year, subject to securing necessary financing. - **Financing:** The company needs substantial additional funding to pay outstanding payables and resume full production, raising substantial doubt about its ability to continue as a going concern. **Key Financial Metrics:** - **Cash Balance:** $253,349,000 as of March 31, 2025, down from $1,513,591,000 on September 30, 2024. - **Working Capital Deficiency:** $7,228,821,000 as of March 31, 2025, compared to $5,857,870,000 as of September 30, 2024. **Conclusion:** Permex Petroleum Corporation faces significant financial challenges, including a substantial working capital deficiency and the need for additional funding to resume full operations. While there are positive trends in increased oil production and revenue, the company must address rising expenses and secure financing to ensure future sustainability.