ONE Gas, Inc. (OGS) has reported a 7.94 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $42.31 million, or $0.80 a share in the quarter, compared with $39.20 million, or $0.74 a share for the same period last year.
Revenue during the quarter grew 13.26 percent to $440.75 million from $389.15 million in the previous year period. Gross margin for the quarter contracted 424 basis points over the previous year period to 55.22 percent. Total expenses were 82.18 percent of quarterly revenues, up from 81.01 percent for the same period last year. That has resulted in a contraction of 117 basis points in operating margin to 17.82 percent.
Operating income for the quarter was $78.53 million, compared with $73.90 million in the previous year period.
"Additional investment in our infrastructure, along with continuing to focus on efficient operations, led to positive results for the fourth quarter and full year," said Pierce H. Norton II, president and chief executive officer. "This strategy enables the company to provide the safe and reliable service our customers expect, while also delivering value for shareholders."
For financial year 2017, ONE Gas, Inc. projects net income to be in the range of $152 million to $162 million. It expects diluted earnings per share to be in the range of $2.87 to $3.07 for the same period.
Operating cash flow drops significantly
ONE Gas, Inc. has generated cash of $281.57 million from operating activities during the year, down 28.57 percent or $112.64 million, when compared with the last year.
The company has spent $308.58 million cash to meet investing activities during the year as against cash outgo of $294.32 million in the last year.
Cash flow from financing activities was $39.24 million for the year as against cash outgo of $109.40 million in the last year period.
Cash and cash equivalents stood at $14.66 million as on Dec. 31, 2016, up 502.67 percent or $12.23 million from $2.43 million on Dec. 31, 2015.
Debt moves up
ONE Gas, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,337.45 million as on Dec. 31, 2016, up 11.07 percent or $133.29 million from $1,204.17 million on Dec. 31, 2015. Total debt was 27.06 percent of total assets as on Dec. 31, 2016, compared with 25.93 percent on Dec. 31, 2015. Debt to equity ratio was at 0.71 as on Dec. 31, 2016, up from 0.65 as on Dec. 31, 2015. Interest coverage ratio improved to 6.99 for the quarter from 6.73 for the same period last year.
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