Enterprise Products Partners L P (EPD) has reported a 3.80 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $658.80 million, or $0.31 a share in the quarter, compared with $684.80 million, or $0.34 a share for the same period last year.
Revenue during the quarter grew 5.26 percent to $6,478.80 million from $6,155 million in the previous year period. Gross margin for the quarter contracted 140 basis points over the previous year period to 13.43 percent. Total expenses were 85.75 percent of quarterly revenues, up from 84.82 percent for the same period last year. That has resulted in a contraction of 93 basis points in operating margin to 14.25 percent.
Operating income for the quarter was $923.20 million, compared with $934.50 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $1,357.30 million when compared with the prior year period. At the same time, adjusted operating margin contracted 106 basis points in the quarter to 20.95 percent from 22.01 percent in the last year period.
"Enterprise reported solid results in 2016, despite another challenging year for the U.S. energy industry," stated Jim Teague, chief executive officer of Enterprise's general partner. "Our performance for 2016 was highlighted by 11.7 percent volume growth for our NGL, refined products and petrochemical pipeline and marine terminal assets to a record 4.6 million barrels per day, which more than offset the impact of a 7.3 percent decline in volumes on our onshore crude oil pipelines and marine terminals compared to 2015. Cash flow generated from our fee-based businesses, new assets, expansions and cost control more than offset the decrease in cash flow from our crude oil, natural gas and commodity-sensitive businesses." "During 2016, we successfully completed $2.2 billion of organic growth projects that began commercial operations, including two new cryogenic natural gas processing plants in the Delaware Basin and our ethane export marine terminal on the Houston Ship Channel. Our commercial teams have been successful in developing new organic growth projects during this business cycle."
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