Kinder Morgan, Inc. (KMI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $209 million, or $ 0.08 a share in the quarter, against a net loss of $695 million, or $0.32 a share in the last year period.
Revenue during the quarter dropped 6.79 percent to $3,389 million from $3,636 million in the previous year period. Gross margin for the quarter contracted 787 basis points over the previous year period to 69.19 percent. Operating margin for the quarter period stood at positive 27.56 percent as compared to a negative 6.71 percent for the previous year period.
Operating income for the quarter was $934 million, compared with an operating loss of $244 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1,830 million compared with $1,947 million in the prior year period. At the same time, adjusted EBITDA margin improved 45 basis points in the quarter to 54 percent from 53.55 percent in the last year period.
Steve Kean president and chief executive officer said, "We are pleased with our operational performance for the quarter, which contributed to full year 2016 results that were in line with our guidance provided since April. We generated full year 2016 distributable cash flow in excess of our dividends and growth capital expenditures, and did not access the capital markets to fund growth projects. We continue to demonstrate the resiliency of our cash flows, generated by our large, diversified portfolio of predominately fee-based assets. We generated earnings per common share for the quarter of $0.08 and distributable cash flow of $0.51 per common share, resulting in $867 million of excess distributable cash flow above our dividend."
Working capital remains negative
Working capital of Kinder Morgan, Inc. was negative $2,703 million on Dec. 31, 2016 compared with negative $1,241 million on Dec. 31, 2015. Current ratio was at 0.54 as on Dec. 31, 2016, down from 0.69 on Dec. 31, 2015.
Debt comes down
Kinder Morgan, Inc. has recorded a decline in total debt over the last one year. It stood at $39,950 million as on Dec. 31, 2016, down 7.37 percent or $3,177 million from $43,127 million on Dec. 31, 2015. Total debt was 49.75 percent of total assets as on Dec. 31, 2016, compared with 51.28 percent on Dec. 31, 2015. Debt to equity ratio was at 1.15 as on Dec. 31, 2016, down from 1.22 as on Dec. 31, 2015.
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