Trio Petroleum Reports Revenue Growth, Operating Expenses Increase, and Net Loss in Latest Quarter

Trio Petroleum Corp. reported its financial results for the three and nine months ended July 31, 2024, highlighting significant developments in revenue, expenses, and overall financial health compared to the previous fiscal period.

For the three months ended July 31, 2024, the company generated revenues of $63,052, a notable increase from $0 in the same period of 2023. For the nine months, total revenues reached $135,975, reflecting a modest increase from the prior year. The company attributed this revenue generation to its operations at the McCool Ranch Oil Field, where oil production restarted in February 2024.

Total operating expenses for the three months decreased to $1,569,032 from $2,157,550 in the prior year, marking a 27.3% reduction. However, for the nine months, operating expenses rose to $5,030,721, up 50.6% from $3,339,858 in 2023. The increase was primarily driven by higher general and administrative expenses, which surged to $3,744,914, up 69% year-over-year, due to increased marketing, legal fees, and salary costs.

The company reported a loss from operations of $(1,505,980) for the three months, an improvement from $(2,157,550) in 2023. However, the nine-month loss from operations increased to $(4,894,746) from $(3,339,858) in the previous year. The net loss for the three months was $(2,178,571), slightly worse than $(2,170,601) in 2023, while the nine-month net loss rose to $(7,926,554) from $(5,224,839).

As of July 31, 2024, current assets were reported at $617,710, a significant decline from $1,695,341 as of October 31, 2023. Current liabilities increased to $3,588,138, resulting in a working capital deficit of $(2,970,428), compared to $(156,045) in the previous period. The company’s accumulated deficit also widened to $(18,373,436) from $(10,446,882).

Strategically, Trio Petroleum has made several acquisitions, including a 21.918315% working interest in the McCool Ranch Oil Field and a 2.25% interest in the Asphalt Ridge Project. The company is also pursuing additional funding through public offerings and has raised approximately $2.37 million through convertible note financing.

The company regained compliance with NYSE American listing requirements on May 1, 2024, after demonstrating sustained price improvement. However, it continues to face challenges, including a significant working capital deficit and the need for additional capital to support ongoing operations and development projects.