USD Partners LP (USDP) has reported 40.73 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $3.96 million in the quarter, compared with $6.68 million for the same period last year.
Revenue during the quarter grew 9.56 percent to $28.55 million from $26.06 million in the previous year period. Gross margin for the quarter expanded 556 basis points over the previous year period to 72.56 percent. Total expenses were 78.29 percent of quarterly revenues, up from 66.12 percent for the same period last year. That has resulted in a contraction of 1217 basis points in operating margin to 21.71 percent.
Operating income for the quarter was $6.20 million, compared with $8.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $16.83 million compared with $12.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 981 basis points in the quarter to 58.94 percent from 49.13 percent in the last year period.
"We are pleased to report another strong quarter at USD Partners and to announce our seventh consecutive distribution increase while delivering over 2.0x distribution coverage," said Dan Borgen, the Partnership’s chief executive officer. "We believe that our high-quality customer base and strategically located assets will continue to provide an excellent foundation for future growth. As crude oil production in Western Canada and demand for our assets increase, we expect to grow the distribution by 5-10% in 2017."
Operating cash flow improves significantlyUSD Partners LP has generated cash of $53.08 million from operating activities during the year, up 46.60 percent or $16.87 million, when compared with the last year. The company has spent $0.09 million cash to meet investing activities during the year as against cash outgo of $213.28 million in the last year.
The company has spent $51.30 million cash to carry out financing activities during the year as against cash inflow of $147.96 million in the last year period.
Cash and cash equivalents stood at $11.70 million as on Dec. 31, 2016, up 11.48 percent or $1.20 million from $10.50 million on Dec. 31, 2015.
Debt comes down
USD Partners LP has recorded a decline in total debt over the last one year. It stood at $220.89 million as on Dec. 31, 2016, down 7.75 percent or $18.55 million from $239.44 million on Dec. 31, 2015. USD Partners LP has recorded a decline in long-term debt over the last one year. It stood at $220.89 million as on Dec. 31, 2016, down 7.75 percent or $18.55 million from $239.44 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.43 for the quarter from 6.06 for the same period last year.
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