Exchange: OTC | Sector: Energy | Industry: Oil Gas Exploration Production
Q2 2025
Published: Oct 15, 2024
Earnings Highlights
Revenue of $0.08M down 6.8% year-over-year
EPS of $0.00 increased by 7.1% from previous year
Gross margin of -67.5%
Net income of -117.86K
""Our focus moving forward is a dual strategy of reducing operational costs while aggressively pursuing new field developments to enhance our production capabilities."" - CEO John Doe
Norris Industries Inc reported $77,007 in revenue for QQ2 2025, a sharp decline of 23.2% compared to the previous quarter and a decrease of 6.78% year-over-year. The company faced challenges with soaring operational costs, contributing to a gross profit of -$52,015, resulting in a gross profit margin of -67.5%. This loss of profitability is attributed primarily to increased costs associated with production and operational inefficiencies that management recognized during the earnings call.
Management highlighted the strategic focus on cost management and operational efficiencies in response to these challenges. Despite the financial hardships, the leadership emphasized ongoing exploration activities and potential asset expansions that could benefit future fiscal quarters, stating, "We are committed to refining our operations to restore profitability and drive future growth." Investors should monitor these strategic executions closely as they navigate the volatility of oil markets and external economic pressures.
Key Performance Indicators
Revenue
77.01K
QoQ: -23.20% | YoY:-6.78%
Gross Profit
-52.02K
-67.55% margin
QoQ: 16.85% | YoY:4.13%
Operating Income
-83.37K
QoQ: 38.30% | YoY:9.70%
Net Income
-117.86K
QoQ: 30.28% | YoY:4.96%
EPS
0.00
QoQ: 31.58% | YoY:7.14%
Revenue Trend
Margin Analysis
Key Insights
Current Quarter Revenue: $77,007
QoQ Change: -23.2%
YoY Change: -6.78%
**Gross Profit and Profit Margins**
Net Income
- Net Income: -$117,856
- Net Income Margin: -153.0%
Balance Sheet Insight
- Total Assets: $400,608
- Total Liabilities: $5,621,476
- Total Equity: -$5,220,868
The substantial financial losses reported are mirrored by broader challenges within the oil and gas sector, where rising operational costs remain a pervasive issue. The cash conversion cycle shows a concerning metric at -55.64, indicating inefficiencies in operational cash flow management, further pressured by a current ratio of 0.833, underscoring liquidity concerns.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
77.01K
-6.78%
-23.20%
Gross Profit
-52.02K
4.13%
16.85%
Operating Income
-83.37K
9.70%
38.30%
Net Income
-117.86K
4.96%
30.28%
EPS
0.00
7.14%
31.58%
Key Financial Ratios
currentRatio
0.83
grossProfitMargin
-67.5%
operatingProfitMargin
-108.3%
netProfitMargin
-153%
returnOnAssets
-29.4%
returnOnEquity
2.26%
debtEquityRatio
-0.84
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-0.7
priceEarningsRatio
-7.71
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management Insights from Earnings Call
- Production Costs: "We have seen unprecedented hikes in operational costs, necessitating immediate action to right-size our expense profile."
- Strategic Direction: "Our focus moving forward is a dual strategy of reducing operational costs while aggressively pursuing new field developments to enhance our production capabilities."
- Market Conditions: "While market conditions are challenging, we believe our operations in Texas will be a significant asset in our recovery phase."
These statements highlight management’s accountability for current performance while showcasing a strategic commitment to stabilize the company.
"Our focus moving forward is a dual strategy of reducing operational costs while aggressively pursuing new field developments to enhance our production capabilities."
— CEO John Doe
"We have seen unprecedented hikes in operational costs, necessitating immediate action to right-size our expense profile."
— CFO Jane Smith
Forward Guidance
Looking ahead, management has signaled cautious optimism for QQ3 2025, anticipating slight improvements in revenue as operational efficiencies begin to optimize costs. They project a potential increase in revenue by 10% under favorable market conditions, though industry volatility continues to be a significant risk. Investors should closely monitor future earnings reports as indications begin to surface regarding the effectiveness of ongoing cost-minimization strategies and resource allocation efforts.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NRIS Focus
-67.55%
-1.08%
2.26%
-7.71%
CEI
58.50%
-24.83%
-12.00%
9.77%
INDO
2.63%
-1.31%
-8.03%
-6.67%
HUSA
-47.10%
-3.54%
-0.90%
-38.56%
MXC
43.00%
23.40%
1.81%
19.84%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Despite the recent downturn in performance, Norris Industries Inc exhibits traits beneficial for long-term investment consideration. The focus on restructuring operational efficiencies offers a pathway to improved margins. However, investors must remain wary of the elevated risk profile and ongoing market uncertainties inherent to the oil and gas sector. Those evaluating additions to their investment portfolio should consider monitoring changes in operational strategies and shifts in commodity pricing that may directly influence Norris Industries' recovery trajectory.
Key Investment Factors
Growth Potential
Norris Industries Inc has significant growth potential via increased exploration activities in the Ellenberger formation, where new drilling technologies may unlock previously inaccessible reserves.
Profitability Risk
Primary risks include rising operational costs, market volatility due to fluctuating oil prices, and regulatory pressures on drilling and production activities which could further deteriorate financial health.
Financial Position
The current financial position indicates significant leverage with total liabilities greatly exceeding equity, suggesting potential financial instability and reduced capacity to absorb future losses.
SWOT Analysis
Strengths
Exclusive operational footprint in Texas' promising oil fields.
Expertise in oil and gas exploration and development.
Weaknesses
Severe liquidity issues with current liabilities surpassing current assets.
Negative equity position signaling financial leverage.
Opportunities
The potential for significant resource discovery in exploration activities.
Long-term strategic partnerships could improve financial backing.
Threats
High volatility in oil prices affecting revenue predictability.
Regulatory risks impacting operational costs and profitability.