National Fuel Gas Company (NFG) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $37.55 million, or $ 0.44 a share in the quarter, against a net loss of $187.70 million, or $2.22 a share in the last year period.
Revenue during the quarter went down marginally by 2.85 percent to $292.47 million from $301.06 million in the previous year period. Gross margin for the quarter expanded 147 basis points over the previous year period to 99.72 percent.
Operating income for the quarter was $81.24 million, compared with an operating loss of $326.73 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $170.12 million compared with $153.55 million in the prior year period. At the same time, adjusted EBITDA margin improved 716 basis points in the quarter to 58.17 percent from 51 percent in the last year period.
Ronald J. Tanski, president and chief executive officer of National Fuel Gas Company, stated: “We are pleased to finish our 2016 fiscal year with a strong fourth quarter. Realized commodity prices that declined by more than 10% over the entire fiscal year had a negative effect on our financial performance, as did weather that was 16% warmer than normal. Nonetheless, we were able to improve on our overall results from the prior year. Our team’s continued focus on cost control and operational efficiencies across the Company’s entire value chain helped drive the improved results for the year.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.85 to $3.15.
Operating cash flow drops significantly
National Fuel Gas Company has generated cash of $588.98 million from operating activities during the year, down 31 percent or $264.60 million, when compared with the last year.
The company has spent $453.50 million cash to meet investing activities during the year as against cash outgo of $1,024.79 million in the last year.
The company has spent $119.11 million cash to carry out financing activities during the year as against cash inflow of $247.92 million in the last year period.
Cash and cash equivalents stood at $129.97 million as on Sep. 30, 2016, up 14.42 percent or $16.38 million from $113.60 million on Sep. 30, 2015.
Working capital increases sharply
National Fuel Gas Company has recorded an increase in the working capital over the last year. It stood at $109.29 million as at Sep. 30, 2016, up 63.46 percent or $42.43 million from $66.86 million on Sep. 30, 2015. Current ratio was at 1.36 as on Sep. 30, 2016, up from 1.15 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 2094 days for the quarter from 997 days for the last year period. Days sales outstanding went up to 21 days for the quarter compared with 16 days for the same period last year.
Days inventory outstanding has increased to 3992 days for the quarter compared with 566 days for the previous year period. At the same time, days payable outstanding went up to 6106 days for the quarter from 1579 for the same period last year.
Debt remains almost stable
Total debt of National Fuel Gas Company remained almost stable for the quarter at $2,086.25 million, when compared with the last year period. Long-term debt of National Fuel Gas Co remained almost stable for the quarter at $2,086.25 million, when compared with the last year period. Total debt was 37.01 percent of total assets as on Sep. 30, 2016, compared with 31.09 percent on Sep. 30, 2015. Debt to equity ratio was at 1.37 as on Sep. 30, 2016, up from 1.03 as on Sep. 30, 2015.
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