New Concept Energy, Inc. (NYSEMKT:GBR), a leading oil and gas company based in Dallas, is pleased to announce financial results for the three-month period ending March 31, 2015. As per the reports, the net income of the company bounced to $314,000 in 1Q2015 compared to previous year’s net loss of $40,000.
Financial Insights For March Quarter:
A number of aspects played a vital role in this increased revenue during the March 2015 quarter. The oil and gas revenue for the company amounted to $172,000 in 1Q2015 compared to $344,000 in 1Q2014. Due to market fluctuations and reduced demand, it experienced a negative growth of $172,000 in revenues. When it comes to average oil price over a period of 12 months, one can see a huge difference. The prices were as much as $93 barrel during the first quarter of 2014 while they came down to $46 per barrel.
Of total $172,000 reduction in the revenues, $100,000 was due to negative growth in oil prices. During 1Q2015, the company witnessed harsh weather in the areas where it had oil wells. The bad weather conditions not only made it difficult for the company to repair the wells, but also to pick up oil on various occasions. New Concept feels that weather played as important role in the revenue reduction as the reduced oil price played.
It recorded as much as $717,000 worth of revenues in 1Q2015 from its retirement property, compared to $725,000 during the same period in 2014. The operating expenses for the March 2015 quarter were $1.27 million compared to $1.31 million during the same period in the previous year.
In 2014, it had a total bills receivables worth of $10.3 million and was unsure if it would be able to collect the amount in full. To nullify the possible loss, it even established a reserve of $10.3 million. However, the management is delighted to experience positive growth in net income and hopes that things will continue to fall in line in the coming quarters as well.