ONEOK Partners, L.P (OKS) has reported a 20.86 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $274.31 million, or $0.59 a share in the quarter, compared with $226.96 million, or $0.45 a share for the same period last year.
Revenue during the quarter grew 24.18 percent to $2,357.39 million from $1,898.42 million in the previous year period. Gross margin for the quarter contracted 262 basis points over the previous year period to 25.70 percent. Total expenses were 85.73 percent of quarterly revenues, up from 84.85 percent for the same period last year. That has resulted in a contraction of 88 basis points in operating margin to 14.27 percent.
Operating income for the quarter was $336.34 million, compared with $287.56 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $469.36 million compared with $403.68 million in the prior year period. At the same time, adjusted EBITDA margin contracted 135 basis points in the quarter to 19.91 percent from 21.26 percent in the last year period.
“ONEOK Partners continues to post strong financial results and expects to finish 2016 in line with financial guidance,” said Terry K. Spencer, president and chief executive officer of ONEOK Partners. “Third-quarter 2016 results benefited from increased natural gas volumes gathered and processed and higher NGL volumes fractionated from recently connected natural gas processing plants and increased ethane recovery compared with last year.
Operating cash flow improves significantly
ONEOK Partners, L.P has generated cash of $999.38 million from operating activities during the nine month period, up 33.78 percent or $252.35 million, when compared with the last year period.
The company has spent $482.48 million cash to meet investing activities during the nine month period as against cash outgo of $940.74 million in the last year period. It has incurred net capital expenditure of $470.32 million on net basis during the nine month period, down 49.19 percent or $455.38 million from year ago period.
The company has spent $516.45 million cash to carry out financing activities during the nine month period as against cash inflow of $158.44 million in the last year period.
Cash and cash equivalents stood at $5.52 million as on Sep. 30, 2016, down 23.93 percent or $1.74 million from $7.26 million on Sep. 30, 2015.
Working capital remains negative
Working capital of ONEOK Partners, L.P was negative $1,157.46 million on Sep. 30, 2016 compared with negative $1,021.25 million on Sep. 30, 2015. Current ratio was at 0.49 as on Sep. 30, 2016, up from 0.46 on Sep. 30, 2015.
Days sales outstanding went down to 28 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding was almost stable at 9 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 36 days for the quarter from 44 for the same period last year.
Debt moves up
ONEOK Partners, L.P has witnessed an increase in total debt over the last one year. It stood at $7,842.81 million as on Sep. 30, 2016, up 10.61 percent or $752.29 million from $7,090.52 million on Sep. 30, 2015. Total debt was 51.19 percent of total assets as on Sep. 30, 2016, compared with 47.17 percent on Sep. 30, 2015. Debt to equity ratio was at 1.27 as on Sep. 30, 2016, down from 138.92 as on Sep. 30, 2015. Interest coverage ratio improved to 3.64 for the quarter from 3.32 for the same period last year.
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