ONEOK, Inc. (OKE) has reported a 254.71 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $90.50 million, or $0.43 a share in the quarter, compared with $25.52 million, or $0.12 a share for the same period last year.
Revenue during the quarter surged 37.47 percent to $2,654.46 million from $1,930.90 million in the previous year period. Gross margin for the quarter contracted 710 basis points over the previous year period to 23.85 percent. Total expenses were 87.58 percent of quarterly revenues, up from 87.47 percent for the same period last year. That has resulted in a contraction of 12 basis points in operating margin to 12.42 percent.
Operating income for the quarter was $329.60 million, compared with $242.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $469.03 million compared with $448.37 million in the prior year period. At the same time, adjusted EBITDA margin contracted 555 basis points in the quarter to 17.67 percent from 23.22 percent in the last year period.
"ONEOK reported strong 2016 financial performance as a result of ONEOK Partners' adjusted EBITDA increasing nearly 18 percent compared with 2015, driven by higher fee-based earnings in all three business segments," said Terry K. Spencer, president and chief executive officer of ONEOK and ONEOK Partners. "ONEOK maintained its healthy dividend coverage throughout 2016, ending with full-year coverage of 1.31 times and approximately $250 million in cash."
Operating cash flow improves significantly
ONEOK, Inc. has generated cash of $1,351.61 million from operating activities during the year, up 34.22 percent or $344.63 million, when compared with the last year.
The company has spent $615.44 million cash to meet investing activities during the year as against cash outgo of $1,190.72 million in the last year. It has incurred net capital expenditure of $599.21 million on net basis during the year, down 49.41 percent or $585.27 million from year ago.
The company has spent $584.79 million cash to carry out financing activities during the year as against cash inflow of $108.59 million in the last year period.
Cash and cash equivalents stood at $248.88 million as on Dec. 31, 2016, up 154.95 percent or $151.26 million from $97.62 million on Dec. 31, 2015.
Working capital remains negative
Working capital of ONEOK, Inc. was negative $1,407.02 million on Dec. 31, 2016 compared with negative $663.06 million on Dec. 31, 2015. Current ratio was at 0.50 as on Dec. 31, 2016, down from 0.60 on Dec. 31, 2015.
Debt moves up
ONEOK, Inc. has witnessed an increase in total debt over the last one year. It stood at $9,440.92 million as on Dec. 31, 2016, up 5.13 percent or $460.35 million from $8,980.57 million on Dec. 31, 2015. Total debt was 58.50 percent of total assets as on Dec. 31, 2016, compared with 58.14 percent on Dec. 31, 2015. Debt to equity ratio was at 2.75 as on Dec. 31, 2016, up from 2.38 as on Dec. 31, 2015. Interest coverage ratio improved to 2.89 for the quarter from 2.19 for the same period last year.
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