Williams Partners L.P. (WPZ) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $326 million, or $ 0.42 a share in the quarter, against a net loss of $194 million, or $0.32 a share in the last year period.
Revenue during the quarter grew 6.42 percent to $1,907 million from $1,792 million in the previous year period. Gross margin for the quarter expanded 129 basis points over the previous year period to 55.53 percent. Total expenses were 77.66 percent of quarterly revenues, down from 78.46 percent for the same period last year. This has led to an improvement of 80 basis points in operating margin to 22.34 percent.
Operating income for the quarter was $426 million, compared with $386 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1,189 million compared with $1,100 million in the prior year period. At the same time, adjusted EBITDA margin improved 97 basis points in the quarter to 62.35 percent from 61.38 percent in the last year period.
Alan Armstrong, chief executive officer of Williams Partners' general partner, made the following comments: "With Adjusted EBITDA growth across all five of the partnership’s operating areas and increased distributable cash flow achieved by Williams Partners, our strong third-quarter results highlighted once again the effectiveness of our strategy and how well-positioned we are to capture natural gas demand growth now and in the future. “Our recent accomplishments reflect disciplined execution against our business plan. The new Kodiak, Gunflint and Rock Springs facilities all contributed to our growth in the third quarter. Despite the expanding number of major projects recently placed in-service, we reduced expenses on a year-to-date basis. We also completed win-win contract renegotiations with our customer Chesapeake and completed the sale of our Canadian businesses as we continue to take decisive actions to position our company for predictable growth."
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