Spectra Energy Partners, LP (SEP) has reported 6.38 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $317 million in the quarter, compared with $298 million for the same period last year.
Revenue during the quarter grew 12.18 percent to $700 million from $624 million in the previous year period. Total expenses were 52.57 percent of quarterly revenues, up from 48.08 percent for the same period last year. That has resulted in a contraction of 449 basis points in operating margin to 47.43 percent.
Operating income for the quarter was $332 million, compared with $324 million in the previous year period.
"As seen in this quarter's results, Spectra Energy Partners' strong base business continues to perform well, and is being further enhanced by the expansion projects we placed into service in 2016 and those that we are advancing," said Bill Yardley, chairman and president of Spectra Energy Partners. "We continue to generate solid and reliable cash flows that support our distribution growth, and earlier this month we announced our 38th consecutive quarterly distribution increase."
Working capital remains negative
Working capital of Spectra Energy Partners, LP was negative $1,514 million on Mar. 31, 2017 compared with negative $1,134 million on Mar. 31, 2016. Current ratio was at 0.31 as on Mar. 31, 2017, down from 0.34 on Mar. 31, 2016.
Days sales outstanding went down to 17 days for the quarter compared with 39 days for the same period last year.
Debt comes down
Spectra Energy Partners, LP has recorded a decline in total debt over the last one year. It stood at $6,212 million as on Mar. 31, 2017, down 10.63 percent or $739 million from $6,951 million on Mar. 31, 2016. Total debt was 27.71 percent of total assets as on Mar. 31, 2017, compared with 35.86 percent on Mar. 31, 2016. Interest coverage ratio improved to 5.93 for the quarter from 5.79 for the same period last year.
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