SemGroup Corporation (SEMG) has reported 1,654.39 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $12 million, or $0.18 a share in the quarter, compared with $0.68 million, or $0.02 a share for the same period last year. Revenue during the quarter grew 5.14 percent to $402.17 million from $382.49 million in the previous year period. Gross margin for the quarter expanded 34 basis points over the previous year period to 30.09 percent. Total expenses were 90.57 percent of quarterly revenues, down from 94.24 percent for the same period last year. This has led to an improvement of 367 basis points in operating margin to 9.43 percent.
Operating income for the quarter was $37.93 million, compared with $22.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $66.20 million compared with $79.32 million in the prior year period. At the same time, adjusted EBITDA margin contracted 428 basis points in the quarter to 16.46 percent from 20.74 percent in the last year period.
"In 2016, much was accomplished despite continued pressure on our customers and in our markets. Even with these headwinds and lower asset utilization, we achieved our earnings expectations and delivered returns back to our shareholders," said SemGroup President and Chief Executive Officer Carlin Conner. “We simplified our corporate structure, prefunded our capital needs for 2017 and announced more than a quarter of a billion dollars in growth projects in Alberta's Montney region and Oklahoma's STACK play. I expect this momentum to build through 2017 as we complete the Maurepas pipeline project, finalize additional growth via unannounced projects and take advantage of operational leverage in a stronger market."
Working capital increases sharply
SemGroup Corporation has recorded an increase in the working capital over the last year. It stood at $147.52 million as at Dec. 31, 2016, up 42.73 percent or $44.17 million from $103.35 million on Dec. 31, 2015. Current ratio was at 1.30 as on Dec. 31, 2016, up from 1.27 on Dec. 31, 2015.
Debt remains almost stable
SemGroup Corporation has recorded a decline in total debt over the last one year. It stood at $1,050.94 million as on Dec. 31, 2016, down 0.65 percent or $6.90 million from $1,057.85 million on Dec. 31, 2015. Total debt was 34.18 percent of total assets as on Dec. 31, 2016, compared with 36.85 percent on Dec. 31, 2015. Debt to equity ratio was at 0.73 as on Dec. 31, 2016, down from 0.88 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
