NGL Energy Partners LP (NGL) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $25.74 million, or $ 0.14 a share in the quarter, against a net loss of $204.13 million, or $1.94 a share in the last year period.
Revenue during the quarter surged 65.48 percent to $3,848.08 million from $2,325.44 million in the previous year period. Gross margin for the quarter contracted 420 basis points over the previous year period to 6.48 percent. Operating margin for the quarter period stood at positive 1.93 percent as compared to a negative 8.78 percent for the previous year period.
Operating income for the quarter was $74.45 million, compared with an operating loss of $204.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $121 million compared with $154.04 million in the prior year period. At the same time, adjusted EBITDA margin contracted 348 basis points in the quarter to 3.14 percent from 6.62 percent in the last year period.
"Our fourth quarter results were adversely impacted by one of the warmest winters in the United States for the past 100 years negatively impacting both Retail Propane and Liquids as well as a decrease in Refined Products' results due to lower than historical line space values. While neither of these items change our core business strategies, we did adjust our expectations for the upcoming fiscal year for the refined products and propane businesses to account for the potential effects of similar events occurring in the upcoming year," stated Mike Krimbill, CEO of the Partnership. "We had many positive accomplishments during fiscal 2017, including the scheduled startup of Grand Mesa Pipeline, continued expansion of the Retail Propane, Water and Liquids businesses and a restructuring of our balance sheet. We look forward to fiscal 2018 and the continued growth of our Partnership."
Working capital increases sharply
NGL Energy Partners LP has recorded an increase in the working capital over the last year. It stood at $545.61 million as at Mar. 31, 2017, up 69.20 percent or $223.15 million from $322.46 million on Mar. 31, 2016. Current ratio was at 1.58 as on Mar. 31, 2017, up from 1.46 on Mar. 31, 2016.
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