Duke Energy Corp (DUK) has reported a 26.18 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $1,176 million, or $1.70 a share in the quarter, compared with $932 million, or $1.35 a share for the same period last year. On an adjusted basis, earnings per share were at $1.68 for the quarter compared with $1.47 in the same period last year.
Revenue during the quarter grew 5.21 percent to $6,821 million from $6,483 million in the previous year period. Gross margin for the quarter expanded 227 basis points over the previous year period to 46.42 percent. Total expenses were 70.36 percent of quarterly revenues, down from 73.96 percent for the same period last year. This has led to an improvement of 361 basis points in operating margin to 29.64 percent.
Operating income for the quarter was $2,022 million, compared with $1,688 million in the previous year period.
"We delivered strong financial results again this quarter underpinned by solid operational performance and reached pivotal milestones in transitioning our business portfolio," said Lynn Good, Duke Energy chairman, president and CEO. "The recent closing of our Piedmont Natural Gas acquisition, complemented by the announced sale of our international business, advances our portfolio transition and positions us as a premier regulated energy company."
For fiscal year 2016, the company expects diluted earnings per share to be in the range of $4.50 to $4.70 on adjusted basis.
Operating cash flow improves marginally
Duke Energy Corp has generated cash of $5,592 million from operating activities during the nine month period, up 3.63 percent or $196 million, when compared with the last year period.
The company has spent $5,555 million cash to meet investing activities during the nine month period as against cash outgo of $3,291 million in the last year period.
Cash flow from financing activities was $5,285 million for the nine month period as against cash outgo of $2,771 million in the last year period.
Cash and cash equivalents stood at $6,179 million as on Sep. 30, 2016, up 351.02 percent or $4,809 million from $1,370 million on Sep. 30, 2015.
Working capital turns positive
Working capital of Duke Energy Corp has turned positive to $1,458 million on Sep. 30, 2016 from negative $321 million on Sep. 30, 2015. Current ratio was at 1.12 as on Sep. 30, 2016, up from 0.97 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 77 days for the last year period. Days sales outstanding went down to 37 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 42 days for the quarter compared with 89 days for the previous year period. At the same time, days payable outstanding was almost stable at 51 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 $50,176 million as on Sep. 30, 2016, up 17.72 percent or $7,554 million from $42,622 million on Sep. 30, 2015. Total debt was 38.69 percent of total assets as on Sep. 30, 2016, compared with 35.22 percent on Sep. 30, 2015. Debt to equity ratio was at 1.24 as on Sep. 30, 2016, up from 1.07 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 4.20 for the quarter from 4.20 for the same period last year.
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