Jupiter Energy Limited - Quarterly Cash Flow Report - June 2024
JPR (JPR) Share Update July 2024 Sunday 21st
Jupiter Energy Limited Releases Quarterly Cash Flow Report
Jupiter Energy Limited (ASX: JPR) has released its quarterly cash flow report for the period ending 30 June 2024, showcasing a positive net cash flow from operating activities.
Instant Summary:
- Net cash from operating activities: $1.39 million for the quarter.
- Cash and cash equivalents increased to $3.245 million.
- No new borrowings; $7.548 million in unused financing facilities available.
- Repayment of $1.724 million prepayment for 'gas to electricity' generators.
Operational Cash Flow
Jupiter Energy Limited reported a net cash inflow from operating activities of $1.39 million for the June 2024 quarter. This was primarily driven by receipts from customers amounting to $3.277 million, offset by production costs of $1.218 million, staff costs of $339,000, and administration and corporate costs of $382,000.
Other notable cash outflows included a $1.724 million repayment for a prepayment associated with the purchase of five 'gas to electricity' generators. Interest received during the quarter was $52,000.
Investing and Financing Activities
Investing activities saw minimal movement, with payments for property, plant, and equipment totaling $8,000. Proceeds from other sources amounted to $30,000, resulting in a net cash inflow of $22,000 from investing activities.
On the financing front, there were no new borrowings, and the company repaid $1.067 million in existing borrowings over the year. The net cash outflow from financing activities for the quarter was $2,000.
Financial Position
As of 30 June 2024, Jupiter Energy Limited's cash and cash equivalents stood at $3.245 million, up from $2 million at the beginning of the quarter. The company also has $7.548 million in unused financing facilities, provided interest-free by major shareholder Waterford Finance & International Limited, available until 31 December 2024.
The company continues to manage its debt effectively, with $24.3 million in noteholder debt remaining interest-free until 31 December 2026. The next repayment of $500,000 is expected before the end of August 2024.
The positive net cash flow from operating activities and the increase in cash and cash equivalents are likely to have a favorable impact on Jupiter Energy Limited's stock price. The availability of substantial unused financing facilities provides a cushion for future operations and growth. However, the repayment obligations and the company's reliance on customer receipts for cash flow may be points of concern for some investors.
Investor Reaction:
Analysts have generally reacted positively to the report, noting the company's strong cash position and effective debt management. Some investors have expressed optimism about the company's ability to meet its future financial obligations and continue its operations without the need for additional borrowing.
Conclusion:
Investors should keep an eye on Jupiter Energy Limited's future cash flow reports and any updates on their debt repayment schedule. The company's strong cash position and available financing facilities suggest a stable outlook, but ongoing monitoring of operational performance and market conditions is advisable.