Avista Corporation (AVA) has reported a 4.08 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $40.09 million, or $0.62 a share in the quarter, compared with $38.52 million, or $0.61 a share for the same period last year.
Revenue during the quarter grew 3.83 percent to $402.12 million from $387.30 million in the previous year period. Total expenses were 79.48 percent of quarterly revenues, down from 81.83 percent for the same period last year. This has led to an improvement of 236 basis points in operating margin to 20.52 percent.
Operating income for the quarter was $82.53 million, compared with $70.37 million in the previous year period.
"We had a great year in 2016. We saw increased earnings at Avista Utilities compared to 2015 due to increased electric and natural gas gross margin, which was partially offset by increased operating expenses, depreciation and interest expense. Our strong operational performance in 2016 resulted in continued reliable service for our customers and high customer satisfaction ratings. We also continued making capital investments in our utility infrastructure, which we view as critical for the safety and reliability of our system and to meet the needs of our customers into the future. In addition, we strengthened our commitment to our communities through further development of innovative technologies in our service area," said Scott Morris, chairman, president and chief executive officer of Avista Corp.
For financial year 2017, the company projects diluted earnings per share to be in the range of $1.80 to $2 on adjusted basis.
Debt moves up
Avista Corporation has witnessed an increase in total debt over the last one year. It stood at $1,853.55 million as on Dec. 31, 2016, up 7.15 percent or $123.73 million from $1,729.82 million on Dec. 31, 2015. Total debt was 34.91 percent of total assets as on Dec. 31, 2016, compared with 35.25 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 1.12 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 3.74 for the quarter from 3.60 for the same period last year.
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