Delek Logistics Partners, LP (DKL) has reported a marginal increase of a 0.11 percent in profit for the quarter ended Dec. 31, 2016. The company has earned $15.31 million, or $0.47 a share, compared with $15.30 million or $0.55 a share, a year ago. Revenue during the quarter grew 14.46 percent to $124.68 million from $108.93 million in the previous year period. Gross margin for the quarter contracted 601 basis points over the previous year period to 28.80 percent. Total expenses were 84.63 percent of quarterly revenues, up from 83.60 percent for the same period last year. That has resulted in a contraction of 103 basis points in operating margin to 15.37 percent.
Operating income for the quarter was $19.16 million, compared with $17.86 million in the previous year period.
Uzi Yemin, chairman and chief executive officer of Delek Logistics' general partner, remarked: "During the fourth quarter, our focus on cost savings initiatives played a role in the 25 percent year-over-year decline in operating expenses. Also the improvement in west Texas activity in the Permian Basin that benefited our wholesale business during the fourth quarter has continued into 2017. We maintained financial flexibility, ending the quarter with approximately $300 million of capacity on our credit facility and a leverage ratio of 3.85 times. This financial position supported the 15.3 percent year-over-year increase in our declared fourth quarter distribution."
Operating cash flow improves significantly
Delek Logistics Partners, LP has generated cash of $100.71 million from operating activities during the year, up 48.05 percent or $32.68 million, when compared with the last year. The company has spent $72.69 million cash to meet investing activities during the year as against cash outgo of $56.59 million in the last year.
The company has spent $27.96 million cash to carry out financing activities during the year as against cash outgo of $13.29 million in the last year period.
Cash and cash equivalents stood at stood at $0.06 million as at Dec. 31, 2016.
Working capital drops significantly
Delek Logistics Partners, LP has witnessed a decline in the working capital over the last year. It stood at $11.31 million as at Dec. 31, 2016, down 57.07 percent or $15.04 million from $26.35 million on Dec. 31, 2015. Current ratio was at 1.55 as on Dec. 31, 2016, down from 2.27 on Dec. 31, 2015.
Debt moves up
Delek Logistics Partners, LP has witnessed an increase in total debt over the last one year. It stood at $392.60 million as on Dec. 31, 2016, up 11.66 percent or $41 million from $351.60 million on Dec. 31, 2015. Delek Logistics Partners, LP has witnessed an increase in long-term debt over the last one year. It stood at $392.60 million as on Dec. 31, 2016, up 11.66 percent or $41 million from $351.60 million on Dec. 31, 2015. Total debt was 94.48 percent of total assets as on Dec. 31, 2016, compared with 93.69 percent on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.19 for the quarter from 5.87 for the same period last year.
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