National Fuel Gas Company (NFG) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $88.91 million, or $ 1.04 a share in the quarter, against a net loss of $189.11 million, or $2.23 a share in the last year period. Revenue during the quarter grew 12.61 percent to $422.50 million from $375.20 million in the previous year period. Gross margin for the quarter contracted 541 basis points over the previous year period to 83.37 percent. Operating margin for the quarter period stood at positive 40.74 percent as compared to a negative 81.54 percent for the previous year period.
Operating income for the quarter was $172.14 million, compared with an operating loss of $305.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $228.34 million compared with $204.76 million in the prior year period. At the same time, adjusted EBITDA margin contracted 53 basis points in the quarter to 54.04 percent from 54.57 percent in the last year period.
Ronald J. Tanski, president and chief executive officer of National Fuel Gas Company, stated: "Our 2017 fiscal year is off to a great start. Aside from our pipeline and storage segment, where earnings were down modestly, each of the other segments improved its financial performance over the prior year. We are particularly pleased that natural gas prices increased to levels that allowed Seneca to return wells to production. Senecas increased production, and the associated throughput on our gathering systems, were the main drivers that allowed us to exceed our guidance.
For financial year 2017, the company projects diluted earnings per share to be in the range of $3.10 to $3.30.
Operating cash flow improves significantlyNational Fuel Gas Company has generated cash of $144.65 million from operating activities during the quarter, up 26.80 percent or $30.57 million, when compared with the last year period. The company has spent $104.59 million cash to meet investing activities during the quarter as against cash outgo of $191.62 million in the last year period.
The company has spent $33.54 million cash to carry out financing activities during the quarter as against cash inflow of $0.28 million in the last year period.
Cash and cash equivalents stood at $136.49 million as on Dec. 31, 2016, up 275.71 percent or $100.16 million from $36.33 million on Dec. 31, 2015.
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