Tesoro Logistics (TLLP) has reported 11.76 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $76 million, or $0.31 a share in the quarter, compared with $68 million, or $0.49 a share for the same period last year.
Revenue during the quarter grew 9.25 percent to $319 million from $292 million in the previous year period. Total expenses were 61.44 percent of quarterly revenues, down from 66.78 percent for the same period last year. This has led to an improvement of 534 basis points in operating margin to 38.56 percent.
Operating income for the quarter was $123 million, compared with $97 million in the previous year period.
"We are proud of the success that we achieved in 2016 in executing our strategy to grow the business through optimization, organic growth and strategic investments, including third-party acquisitions and drop downs from Tesoro. This delivered growth in net earnings, EBITDA, cash from operating activities and distributable cash flow, despite a challenging market environment characterized by lower crude oil and natural gas prices," said Greg Goff, chairman and chief executive officer of TLLP’s general partner. "TLLP announced $1.1 billion of acquisitions during the fourth quarter and we are excited about the growth opportunities for 2017 as we continue to execute our strategic priorities with our expanded portfolio. This should enable us to achieve our target of $550 million of annual net earnings and $1 billion of annual EBITDA in 2017."
Debt increases substantiallyTesoro Logistics has witnessed an increase in total debt over the last one year. It stood at $4,053 million as on Dec. 31, 2016, up 42.51 percent or $1,209 million from $2,844 million on Dec. 31, 2015. Tesoro Logistics has witnessed an increase in long-term debt over the last one year. It stood at $4,053 million as on Dec. 31, 2016, up 42.51 percent or $1,209 million from $2,844 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.32 for the quarter from 2.55 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
