Northwest Natural Gas Company (NWN) has reported a 4.81 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $28.28 million, or $1 a share in the quarter, compared with $29.70 million, or $1.08 a share for the same period last year.
Revenue during the quarter went up marginally by 1.22 percent to $233.53 million from $230.72 million in the previous year period. Gross margin for the quarter expanded 77 basis points over the previous year period to 55.88 percent. Total expenses were 75.58 percent of quarterly revenues, up from 73.90 percent for the same period last year. That has resulted in a contraction of 167 basis points in operating margin to 24.42 percent.
Operating income for the quarter was $57.04 million, compared with $60.21 million in the previous year period.
"This was a significant year for NW Natural with important progress on key growth initiatives such as the North Mist Expansion Project," said David H. Anderson, president and chief executive officer. "Our core utility continued to perform well with strong margins and the highest annual customer growth rate since 2008. And I'm proud that once again the dedication of our employees led to the highest residential and business customer satisfaction score in the West according to J.D. Power and Associates. This legacy of service coupled with historically low natural gas prices and a strong customer preference for our product is creating opportunities that I am confident we can execute on for continued growth in the years to come."
For financial year 2017, the company projects diluted earnings per share to be in the range of $2.05 to $2.25.
Operating cash flow improves
Northwest Natural Gas Company has generated cash of $222.15 million from operating activities during the year, up 20.28 percent or $37.46 million, when compared with the last year.
The company has spent $136.63 million cash to meet investing activities during the year as against cash outgo of $115.30 million in the last year. It has incurred net capital expenditure of $138.99 million on net basis during the year, up 17.88 percent or $21.08 million from year ago.
The company has spent $86.21 million cash to carry out financing activities during the year as against cash outgo of $74.71 million in the last year period.
Cash and cash equivalents stood at $3.52 million as on Dec. 31, 2016, down 16.39 percent or $0.69 million from $4.21 million on Dec. 31, 2015.
Debt comes down
Northwest Natural Gas Company has recorded a decline in total debt over the last one year. It stood at $772.62 million as on Dec. 31, 2016, down 10.62 percent or $91.83 million from $864.45 million on Dec. 31, 2015. Total debt was 25.09 percent of total assets as on Dec. 31, 2016, compared with 28.10 percent on Dec. 31, 2015. Debt to equity ratio was at 0.91 as on Dec. 31, 2016, down from 1.11 as on Dec. 31, 2015. Interest coverage ratio improved to 5.74 for the quarter from 5.23 for the same period last year.
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