Southcross Energy Partners (SXE) saw its loss widen to $39.47 million, or $0.58 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $16.48 million, or $0.17 a share.
Revenue during the quarter dropped 3.63 percent to $159.72 million from $165.74 million in the previous year period. Gross margin for the quarter contracted 270 basis points over the previous year period to 13.41 percent. Operating margin for the quarter stood at negative 14.63 percent as compared to a negative 3.15 percent for the previous year period.
Operating loss for the quarter was $23.37 million, compared with an operating loss of $5.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $18.40 million compared with $24.89 million in the prior year period. At the same time, adjusted EBITDA margin contracted 350 basis points in the quarter to 11.52 percent from 15.02 percent in the last year period.
"In 2016, Southcross focused on improving safe, reliable operation of its assets and beginning to reduce costs to better align with the current energy market environment and realities," said Bruce A. Williamson, president and chief executive officer of Southcross’ general partner. "We began several initiatives that should result in reduced 2017 general and administrative and operating expenses and lower future capital expenditure requirements. We also began rationalizing some of our assets including the planned shut-down and sale of two of our older and less efficient processing facilities."
Operating cash flow improves significantlySouthcross Energy Partners has generated cash of $50.90 million from operating activities during the year, up 171.84 percent or $32.18 million, when compared with the last year. The company has spent $8.90 million cash to meet investing activities during the year as against cash outgo of $127.84 million in the last year. It has incurred net capital expenditure of $3.60 million on net basis during the year, down 96.54 percent or $100.41 million from year ago.
The company has spent $32.12 million cash to carry out financing activities during the year as against cash inflow of $118.81 million in the last year period.
Cash and cash equivalents stood at $21.23 million as on Dec. 31, 2016, up 87.05 percent or $9.88 million from $11.35 million on Dec. 31, 2015.
Debt comes down
Southcross Energy Partners has recorded a decline in total debt over the last one year. It stood at $548.37 million as on Dec. 31, 2016, down 9.96 percent or $60.65 million from $609.02 million on Dec. 31, 2015.
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