DCP Midstream, LP (DPM) has reported a 16.67 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $75 million, or $0.38 a share in the quarter, compared with $90 million, or $0.51 a share for the same period last year.
Revenue during the quarter dropped 8.51 percent to $398 million from $435 million in the previous year period. Gross margin for the quarter contracted 474 basis points over the previous year period to 36.18 percent. Total expenses were 88.19 percent of quarterly revenues, up from 85.52 percent for the same period last year. That has resulted in a contraction of 267 basis points in operating margin to 11.81 percent.
Operating income for the quarter was $47 million, compared with $63 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $151 million compared with $176 million in the prior year period. At the same time, adjusted EBITDA margin contracted 252 basis points in the quarter to 37.94 percent from 40.46 percent in the last year period.
"We delivered on our 2016 commitments and finished the year strong with adjusted EBITDA and distributable cash flow coming in above our 2016 target ranges, resulting in solid distribution coverage of 1.11 times for the year," said Wouter van Kempen, chairman, CEO and president of the Partnership. "We are excited about our recent transaction and the growth opportunities that it provides, paving the way to sustainable distribution growth."
Working capital turns negative
Working capital of DCP Midstream, LP has turned negative to $507 million on Dec. 31, 2016 from positive $106 million on Dec. 31, 2015. Current ratio was at 0.31 as on Dec. 31, 2016, down from 1.53 on Dec. 31, 2015.
Debt comes down
DCP Midstream, LP has recorded a decline in total debt over the last one year. It stood at $2,250 million as on Dec. 31, 2016, down 7.18 percent or $174 million from $2,424 million on Dec. 31, 2015. Short-term debt stood at $500 million as on Dec. 31, 2016. Total debt was 43.60 percent of total assets as on Dec. 31, 2016, compared with 44.26 percent on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.04 for the quarter from 2.74 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
