Spectra Energy Corporation (SE) has reported 14.33 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $275 million in the quarter, compared with $321 million for the same period last year. Revenue during the quarter went up marginally by 2.61 percent to $628 million from $612 million in the previous year period. Total expenses were 55.41 percent of quarterly revenues, up from 47.88 percent for the same period last year. That has resulted in a contraction of 754 basis points in operating margin to 44.59 percent.
Operating income for the quarter was $280 million, compared with $319 million in the previous year period.
"Spectra Energy Partners' results once again benefited from our robust expansion program, and reflect the strength of our fee-based business model that has no direct commodity exposure, virtually no volume exposure, and high credit-quality customers," said Greg Ebel, chief executive officer, Spectra Energy Partners. "Our base business continues to perform well, and we achieved a renewal rate of more than 98 percent of contracted revenues on our U.S. natural gas pipelines ��" a very solid indication of the value our customers place on our system and the strategic value of having assets in the ground to build upon. We continue to generate strong and reliable cash flows that support the growth in the distributions we promised to investors at the beginning of the year.
Working capital remains negative
Working capital of Spectra Energy Corporation was negative $1,500 million on Sep. 30, 2016 compared with negative $1,568 million on Sep. 30, 2015. Current ratio was at 0.34 as on Sep. 30, 2016, down from 0.54 on Sep. 30, 2015. Days sales outstanding went down to 64 days for the quarter compared with 129 days for the same period last year.
Debt comes down significantly
Spectra Energy Corporation has recorded a decline in total debt over the last one year. It stood at $5,454 million as on Sep. 30, 2016, down 61.70 percent or $8,787 million from $14,241 million on Sep. 30, 2015. Total debt was 26.16 percent of total assets as on Sep. 30, 2016, compared with 42.82 percent on Sep. 30, 2015. Debt to equity ratio was at 0.42 as on Sep. 30, 2016, down from 1.43 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 5.28 for the quarter from 5.41 for the same period last year. 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
