Duke Energy Corp (DUK) has reported a 3.17 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $716 million, or $1.02 a share in the quarter, compared with $694 million, or $1.01 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $726 million, or $1.04 a share compared with $777 million or $1.13 a share, a year ago.
Revenue during the quarter grew 6.55 percent to $5,729 million from $5,377 million in the previous year period. Gross margin for the quarter expanded 197 basis points over the previous year period to 45.19 percent. Total expenses were 74.92 percent of quarterly revenues, down from 76.94 percent for the same period last year. This has led to an improvement of 202 basis points in operating margin to 25.08 percent.
Operating income for the quarter was $1,437 million, compared with $1,240 million in the previous year period.
"We have a compelling strategy to deliver value to our stakeholders, and we are making good progress against our plan," said Lynn Good, Duke Energy chairman, president and chief executive officer, "We recently announced Power/Forward Carolinas, our 10-year grid modernization plan in North Carolina. This program and others like it will not only strengthen the energy grid, but will also stimulate economic development and job growth in our communities and provide additional benefits for our customers."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $4.50 to $4.70 on adjusted basis.
Operating cash flow declines
Duke Energy Corp has generated cash of $1,289 million from operating activities during the quarter, down 23.37 percent or $ 393 million, when compared with the last year period.
The company has spent $2,399 million cash to meet investing activities during the quarter as against cash outgo of $1,758 million in the last year period.
Cash flow from financing activities was $1,596 million for the quarter as against cash outgo of $3 million in the last year period.
Cash and cash equivalents stood at $878 million as on Mar. 31, 2017, up 162.87 percent or $544 million from $334 million on Mar. 31, 2016.
Working capital remains almost stable
Working capital of Duke Energy Corp remained almost stable for the quarter at negative $2,936 million, when compared with the previous year period. Current ratio was at 0.73 as on Mar. 31, 2017, up from 0.73 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 56 days for the last year period. Days sales outstanding went up to 24 days for the quarter compared with 11 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 112 days for the previous year period. At the same time, days payable outstanding was almost stable at 66 days for the quarter, when compared with the previous year period.
Debt moves up
Duke Energy Corp has witnessed an increase in total debt over the last one year. It stood at $52,556 million as on Mar. 31, 2017, up 20.01 percent or $8,763 million from $43,793 million on Mar. 31, 2016. Total debt was 39.19 percent of total assets as on Mar. 31, 2017, compared with 35.98 percent on Mar. 31, 2016. Debt to equity ratio was at 1.28 as on Mar. 31, 2017, up from 1.10 as on Mar. 31, 2016. Interest coverage ratio improved to 2.93 for the quarter from 2.54 for the same period last year.
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