National Fuel Gas Company (NFG) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $89.28 million, or $ 1.04 a share in the quarter, against a net loss of $147.69 million, or $1.74 a share in the last year period.
Revenue during the quarter grew 16.24 percent to $522.08 million from $449.13 million in the previous year period. Gross margin for the quarter contracted 1017 basis points over the previous year period to 71.66 percent. Operating margin for the quarter period stood at positive 32.55 percent as compared to a negative 52.77 percent for the previous year period.
Operating income for the quarter was $169.96 million, compared with an operating loss of $237 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $226.96 million compared with $224.39 million in the prior year period. At the same time, adjusted EBITDA margin contracted 649 basis points in the quarter to 43.47 percent from 49.96 percent in the last year period.
Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated: "Strong performance in our Exploration & Production and Gathering segments over each of our last two quarters bodes well for our whole fiscal year. These segments continue to benefit from improving natural gas prices in the Appalachian basin. Given the relative near-term strength we are seeing in local pricing, we are positioning our near-term development and marketing plans to target a 10-plus percent annual growth rate in our Appalachian production over the next three years and lock-in attractive returns on our low-cost drilling program and gathering investments.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.20 to $3.35.
Operating cash flow improves
National Fuel Gas Company has generated cash of $351.89 million from operating activities during the first half, up 12.51 percent or $39.13 million, when compared with the last year period.
The company has spent $184.90 million cash to meet investing activities during the first six months as against cash outgo of $272.29 million in the last year period. It has incurred net capital expenditure of $181.68 million on net basis during the first six months, down 28.49 percent or $72.37 million from year ago period.
The company has spent $65.79 million cash to carry out financing activities during the first six months as against cash outgo of $60.37 million in the last year period.
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