CF Industries Holdings, Inc. (CF) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $320 million, or $ 1.38 a share in the quarter, against a net profit of $27 million, or $0.11 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $90 million, or $0.39 a share compared with a net profit of $168 million, or $0.72 a share in the last year period.
Revenue during the quarter dropped 22.24 percent to $867 million from $1,115 million in the previous year period. Gross margin for the quarter contracted 1427 basis points over the previous year period to 10.84 percent. Operating margin for the quarter stood at negative 11.53 percent as compared to a positive 12.29 percent for the previous year period.
Operating loss for the quarter was $100 million, compared with an operating income of $137 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $133 million compared with $445 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2457 basis points in the quarter to 15.34 percent from 39.91 percent in the last year period.
"Our expansion projects are complete, and the company's production capacity is now 25 percent greater on a nutrient ton basis than it was this time last year," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. "With our cash generation capability strengthened significantly as a result, and the structural advantages of being the low cost producer in an import-dependent region, we believe CF is the best-positioned company to benefit both from the improving market in the first half of 2017 and from the sustained recovery we see ahead for the sector over the next several years."
Operating cash flow drops significantly
CF Industries Holdings, Inc. has generated cash of $617 million from operating activities during the year, down 48.88 percent or $590 million, when compared with the last year.
The company has spent $2,177 million cash to meet investing activities during the year as against cash outgo of $2,976 million in the last year. It has incurred net capital expenditure of $2,197 million on net basis during the year, down 10.58 percent or $260 million from year ago.
Cash flow from financing activities was $2,439 million for the year, up 3,067.53 percent or $2,362 million, when compared with the last year.
Cash and cash equivalents stood at $1,164 million as on Dec. 31, 2016, up 306.99 percent or $878 million from $286 million on Dec. 31, 2015.
Debt moves up marginally
CF Industries Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $5,778 million as on Dec. 31, 2016, up 4.35 percent or $241 million from $5,537 million on Dec. 31, 2015. Total debt was 38.19 percent of total assets as on Dec. 31, 2016, compared with 43.47 percent on Dec. 31, 2015. Debt to equity ratio was at 0.89 as on Dec. 31, 2016, down from 1.26 as on Dec. 31, 2015.
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