Avangrid, Inc. (AGR) has reported an 115.62 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $207 million, or $0.67 a share in the quarter, compared with $96 million, or $0.37 a share for the same period last year. On an adjusted basis, net profit for the quarter was almost stable at $206 million, or $0.67 a share, when compared with the last year period. Revenue during the quarter grew 29.31 percent to $1,491 million from $1,153 million in the previous year period. Total expenses were 79.48 percent of quarterly revenues, down from 92.80 percent for the same period last year. This has led to an improvement of 1332 basis points in operating margin to 20.52 percent.
Operating income for the quarter was $306 million, compared with $83 million in the previous year period.
"It’s been a little over a year since the merger of Iberdrola USA/UIL Holdings and 2016 was clearly a very productive first year," said James P. Torgerson, chief executive officer of Avangrid. “Integration of the companies is proceeding as planned and the implementation of best practices is well underway. Our financial performance and cash flow significantly improved in 2016 helping us to fund our growth strategy as we invested $1.9 billion of capital in Networks and Renewables in 2016. The Renewables Safe Harbor and Repowering opportunities in 2016 enabled us to secure the full value of production tax credits for up to 2 GW of new wind. Earnings improved in part due to the execution of our regulatory strategy with further investment, rate base growth and the achievement of constructive rate agreements in 2016."
For financial year 2017, Avangrid, Inc. projects diluted earnings per share to be in the range of $2.10 to $2.35 on adjusted basis.
Operating cash flow improves
Avangrid, Inc. has generated cash of $1,561 million from operating activities during the year, up 14.53 percent or $198 million, when compared with the last year. The company has spent $1,527 million cash to meet investing activities during the year as against cash outgo of $1,518 million in the last year.
The company has spent $372 million cash to carry out financing activities during the year as against cash inflow of $102 million in the last year period.
Cash and cash equivalents stood at $96 million as on Dec. 31, 2016, down 77.88 percent or $338 million from $434 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Avangrid, Inc. has turned negative to $460 million on Dec. 31, 2016 from positive $439 million on Dec. 31, 2015. Current ratio was at 0.83 as on Dec. 31, 2016, down from 1.22 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Avangrid, Inc. remained almost stable for the quarter at $4,510 million, when compared with the last year period. Total debt was 14.40 percent of total assets as on Dec. 31, 2016, compared with 14.74 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.30 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 5.46 for the quarter from 1.09 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
