Avangrid (AGR) has reported a 12.74 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $239 million, or $0.77 a share in the quarter, compared with $212 million, or $0.69 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $227 million, or $0.73 a share compared with $204 million or $0.66 a share, a year ago.
Revenue during the quarter grew 5.27 percent to $1,758 million from $1,670 million in the previous year period. Total expenses were 77.36 percent of quarterly revenues, down from 79.10 percent for the same period last year. This has led to an improvement of 174 basis points in operating margin to 22.64 percent.
Operating income for the quarter was $398 million, compared with $349 million in the previous year period.
"We delivered strong financial results in the first quarter of 2017," said James P. Torgerson, chief executive officer of Avangrid. "Earnings improved primarily due to the implementation of new rate plans in New York and Connecticut and higher wind production. As we move ahead with our Forward 2020 initiatives, we are implementing our plans on a number of levels including necessary facility consolidations that will give us a more strategic real estate portfolio."
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.10 to $2.35 on adjusted basis.
Operating cash flow improves Avangrid has generated cash of $441 million from operating activities during the quarter, up 11.36 percent or $45 million, when compared with the last year period.
The company has spent $514 million cash to meet investing activities during the quarter as against cash outgo of $201 million in the last year period.
Cash flow from financing activities was $12 million for the quarter as against cash outgo of $220 million in the last year period.
Cash and cash equivalents stood at $35 million as on Mar. 31, 2017, down 91.44 percent or $374 million from $409 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Avangrid has turned negative to $490 million on Mar. 31, 2017 from positive $502 million on Mar. 31, 2016. Current ratio was at 0.81 as on Mar. 31, 2017, down from 1.28 on Mar. 31, 2016.
Days sales outstanding went down to 27 days for the quarter compared with 57 days for the same period last year.
Debt comes down marginally
Avangrid has recorded a decline in total debt over the last one year. It stood at $4,507 million as on Mar. 31, 2017, down 3.86 percent or $181 million from $4,688 million on Mar. 31, 2016. Total debt was 14.36 percent of total assets as on Mar. 31, 2017, compared with 15.35 percent on Mar. 31, 2016. Debt to equity ratio was at 0.30 as on Mar. 31, 2017, down from 0.31 as on Mar. 31, 2016. Interest coverage ratio improved to 5.61 for the quarter from 4.15 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
