Genesis Energy, L.P. (GEL) has reported a 23.26 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $27.09 million, or $0.23 a share in the quarter, compared with $35.30 million, or $0.32 a share for the same period last year.
Revenue during the quarter grew 9.80 percent to $415.49 million from $378.41 million in the previous year period. Gross margin for the quarter contracted 280 basis points over the previous year period to 28.56 percent. Total expenses were 87.34 percent of quarterly revenues, up from 84.18 percent for the same period last year. That has resulted in a contraction of 316 basis points in operating margin to 12.66 percent.
Operating income for the quarter was $52.60 million, compared with $59.85 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $131.36 million compared with $133.83 million in the prior year period. At the same time, adjusted EBITDA margin contracted 375 basis points in the quarter to 31.62 percent from 35.36 percent in the last year period.
Grant Sims, chief executive officer of Genesis Energy, said, "While certain headwinds persist, we are encouraged by the performance of our base businesses some of which we feel are clearly bottoming and poised to potentially deliver increased financial contributions in future periods with little or no additional capital required. As expected, even though we experienced certain delays, our growth projects are starting to contribute meaningfully and should accelerate as we reach full operational capability across our suite of projects. If anything, based in part on actual first quarter activities as well as nominated volumes for the second quarter, we have reason to believe the ultimate performance of our investments will likely exceed our original expectations."
Working capital increases sharply
Genesis Energy, L.P. has recorded an increase in the working capital over the last year. It stood at $121.11 million as at Mar. 31, 2017, up 75.54 percent or $52.12 million from $69 million on Mar. 31, 2016. Current ratio was at 1.52 as on Mar. 31, 2017, up from 1.27 on Mar. 31, 2016.
Cash conversion cycle (CCC) has increased to 19 days for the quarter from 17 days for the last year period. Days sales outstanding went down to 23 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding has increased to 14 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding went down to 18 days for the quarter from 20 for the same period last year.
Debt comes down marginally
Genesis Energy, L.P. has recorded a decline in total debt over the last one year. It stood at $3,024.71 million as on Mar. 31, 2017, down 2.07 percent or $63.86 million from $3,088.58 million on Mar. 31, 2016. Genesis Energy, L.P. has recorded a decline in long-term debt over the last one year. It stood at $3,024.71 million as on Mar. 31, 2017, down 2.07 percent or $63.86 million from $3,088.58 million on Mar. 31, 2016. Total debt was 53.19 percent of total assets as on Mar. 31, 2017, compared with 55.46 percent on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.43 for the quarter from 1.74 for the same period last year.
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