ALLETE, Inc. (ALE) has reported a 6.75 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $49 million, or $0.97 a share in the quarter, compared with $45.90 million, or $0.93 a share for the same period last year.
Revenue during the quarter grew 9.53 percent to $365.60 million from $333.80 million in the previous year period. Gross margin for the quarter contracted 156 basis points over the previous year period to 60.39 percent. Total expenses were 80.14 percent of quarterly revenues, up from 79.99 percent for the same period last year. That has resulted in a contraction of 15 basis points in operating margin to 19.86 percent.
Operating income for the quarter was $72.60 million, compared with $66.80 million in the previous year period.
"It has been a tremendous start to 2017 as ALLETE begins the year with solid financial results and significant progress with several key growth initiatives. As previously disclosed, ALLETE Clean Energy has made a strategic investment of approximately $100 million in federal tax credit qualified turbines. This investment further positions ALLETE Clean Energy with additional growth opportunities as evidenced by two recently announced wind projects; a project expansion of up to 50 megawatts for Montana-Dakota Utilities Co. and a new 100 megawatt wind energy facility to be built and operated to service a long term PPA with Xcel Energy Inc. We anticipate additional future investment opportunities as these turbines have added to an already strong deal flow pipeline for ALLETE Clean Energy. Minnesota Power and Superior Water, Light and Power continue to move forward with their respective rate reviews in support of earning a fair return on their investments to serve customers," said ALLETE chairman, president and chief executive officer Al Hodnik. "These accomplishments and our positioning initiatives over the past several years will benefit our stakeholders this year and beyond."
Debt comes down
ALLETE, Inc. has recorded a decline in total debt over the last one year. It stood at $1,370.20 million as on Mar. 31, 2017, down 12.55 percent or $196.60 million from $1,566.80 million on Mar. 31, 2016. Total debt was 27.73 percent of total assets as on Mar. 31, 2017, compared with 32.15 percent on Mar. 31, 2016. Debt to equity ratio was at 0.68 as on Mar. 31, 2017, down from 0.85 as on Mar. 31, 2016. Interest coverage ratio improved to 4.22 for the quarter from 3.95 for the same period last year.
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