Energy Transfer Equity L.P. (ETE) has reported a 28.67 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $209 million, or $0.19 a share in the quarter, compared with $293 million, or $0.28 a share for the same period last year.
Revenue during the quarter dropped 8.86 percent to $9,675 million from $10,616 million in the previous year period. Gross margin for the quarter expanded 385 basis points over the previous year period to 23.02 percent. Total expenses were 92.80 percent of quarterly revenues, down from 93.88 percent for the same period last year. This has led to an improvement of 108 basis points in operating margin to 7.20 percent.
Operating income for the quarter was $697 million, compared with $650 million in the previous year period.
Working capital turns negative
Working capital of Energy Transfer Equity L.P. has turned negative to $575 million on Sep. 30, 2016 from positive $1,023 million on Sep. 30, 2015. Current ratio was at 0.92 as on Sep. 30, 2016, down from 1.20 on Sep. 30, 2015.
Days sales outstanding went down to 16 days for the quarter compared with 27 days for the same period last year.
Debt moves up
Energy Transfer Equity L.P. has witnessed an increase in total debt over the last one year. It stood at $40,103 million as on Sep. 30, 2016, up 10.33 percent or $3,756 million from $36,347 million on Sep. 30, 2015. Total debt was 52.19 percent of total assets as on Sep. 30, 2016, compared with 51.80 percent on Sep. 30, 2015. Debt to equity ratio was at 1.73 as on Sep. 30, 2016, up from 1.52 as on Sep. 30, 2015.
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