Northwest Natural Gas Company (NWN) has reported a 10.01 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $40.31 million, or $1.40 a share in the quarter, compared with $36.64 million, or $1.33 a share for the same period last year. Revenue during the quarter grew 16.36 percent to $297.32 million from $255.53 million in the previous year period. Gross margin for the quarter contracted 588 basis points over the previous year period to 51.70 percent. Total expenses were 74.36 percent of quarterly revenues, up from 71.01 percent for the same period last year. That has resulted in a contraction of 335 basis points in operating margin to 25.64 percent.
Operating income for the quarter was $76.23 million, compared with $74.07 million in the previous year period.
"The first quarter financial results were solid with the utility continuing to grow organically and providing stable returns," said David H. Anderson, president and chief executive officer of NW Natural. "Operationally our distribution system performed very well through some periods of exceptionally cold weather this past winter. I'm proud of all our dedicated employees that provided outstanding customer service and kept the natural gas system running smoothly."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.05 to $2.25.
Operating cash flow remains almost stable
Northwest Natural Gas Company has generated cash of $145.17 million from operating activities during the quarter, down 0.67 percent or $ 0.97 million, when compared with the last year period. The company has spent $38.83 million cash to meet investing activities during the quarter as against cash outgo of $30.03 million in the last year period.
The company has spent $69.22 million cash to carry out financing activities during the quarter as against cash outgo of $116 million in the last year period.
Cash and cash equivalents stood at $40.64 million as on Mar. 31, 2017, up 840.50 percent or $36.32 million from $4.32 million on Mar. 31, 2016.
Working capital turns positive
Working capital of Northwest Natural Gas Company has turned positive to $30.87 million on Mar. 31, 2017 from negative $90.02 million on Mar. 31, 2016. Current ratio was at 1.13 as on Mar. 31, 2017, up from 0.75 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 37 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 15 days for the quarter compared with 55 days for the previous year period. At the same time, days payable outstanding went down to 46 days for the quarter from 55 for the same period last year.
Debt comes down
Northwest Natural Gas Company has recorded a decline in total debt over the last one year. It stood at $719.71 million as on Mar. 31, 2017, down 5.25 percent or $39.91 million from $759.62 million on Mar. 31, 2016. Total debt was 23.44 percent of total assets as on Mar. 31, 2017, compared with 25.30 percent on Mar. 31, 2016. Debt to equity ratio was at 0.82 as on Mar. 31, 2017, down from 0.94 as on Mar. 31, 2016. Interest coverage ratio improved to 7.72 for the quarter from 7.61 for the same period last year.
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