Genesis Energy, L.P. (GEL) has reported a 19.38 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $22.12 million, or $0.19 a share in the quarter, compared with $27.43 million, or $0.25 a share for the same period last year. Revenue during the quarter dropped 12.82 percent to $428.05 million from $491.01 million in the previous year period. Gross margin for the quarter expanded 319 basis points over the previous year period to 27.97 percent. Total expenses were 89.86 percent of quarterly revenues, up from 88.21 percent for the same period last year. That has resulted in a contraction of 164 basis points in operating margin to 10.14 percent.
Operating income for the quarter was $43.41 million, compared with $57.87 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $133.13 million compared with $137.58 million in the prior year period. At the same time, adjusted EBITDA margin improved 308 basis points in the quarter to 31.10 percent from 28.02 percent in the last year period.
Grant Sims, chief executive officer of Genesis Energy, said, "Given the continuing challenging operating environment in the energy midstream space, we continue to be pleased with the financial performance of our diversified, yet increasingly integrated, businesses. Our significant infrastructure projects in the Baton Rouge area were substantially completed in the fourth quarter, and we anticipate completing our repurposing project in Texas in the second quarter of 2017. We would expect to see contributions from these projects to continue to ramp throughout this year and into 2018. At Raceland, we would expect to see volumes start to ramp in mid-2017 as we will be fully capable of receiving and terminaling heavy crudes via rail and medium sour crudes via pipeline."
Debt moves up
Genesis Energy, L.P. has witnessed an increase in total debt over the last one year. It stood at $3,091.37 million as on Dec. 31, 2016, up 5.79 percent or $169.32 million from $2,922.05 million on Dec. 31, 2015. GENESIS ENERGY LP has witnessed an increase in long-term debt over the last one year. It stood at $3,091.37 million as on Dec. 31, 2016, up 5.79 percent or $169.32 million from $2,922.05 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.23 for the quarter from 1.71 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
