Western Gas Partners, LP (WES) has reported an 8.90 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $167.75 million, or $0.54 a share in the quarter, compared with $184.14 million, or $0.79 a share for the same period last year.
Revenue during the quarter grew 11.36 percent to $481.64 million from $432.52 million in the previous year period. Gross margin for the quarter contracted 71 basis points over the previous year period to 69.76 percent. Total expenses were 59.04 percent of quarterly revenues, up from 47.65 percent for the same period last year. That has resulted in a contraction of 1139 basis points in operating margin to 40.96 percent.
Operating income for the quarter was $197.29 million, compared with $226.43 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $278.17 million compared with $220.70 million in the prior year period. At the same time, adjusted EBITDA margin improved 673 basis points in the quarter to 57.75 percent from 51.03 percent in the last year period.
"The Partnership delivered yet another outstanding financial quarter highlighted by the resiliency of our asset portfolio. We continue to experience strong growth in the Delaware Basin with Ramsey IV successfully ramping to capacity during the quarter, and Ramsey V being placed into service last week," said chief executive officer, Don Sinclair. "Additionally, Ramsey II remains on schedule to return to service by the end of the year, and we have accelerated the scheduled start-up of Ramsey VI to the fourth quarter of 2017."
Operating cash flow improves
Western Gas Partners, LP has generated cash of $657.74 million from operating activities during the nine month period, up 10.19 percent or $60.85 million, when compared with the last year period.
The company has spent $1,040.69 million cash to meet investing activities during the nine month period as against cash outgo of $368.65 million in the last year period. It has incurred net capital expenditure of $1,080.75 million on net basis during the nine month period, up 190.52 percent or $708.74 million from year ago period.
Cash flow from financing activities was $429.37 million for the nine month period as against cash outgo of $222.10 million in the last year period.
Cash and cash equivalents stood at $144.45 million as on Sep. 30, 2016, up 97.33 percent or $71.25 million from $73.20 million on Sep. 30, 2015.
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