Plains All American Pipeline, L.P (PAA) has reported 16.16 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $249 million in the quarter, compared with $297 million for the same period last year. On an adjusted basis, net profit for the quarter was $293 million, when compared with $262 million in the last year period. Revenue during the quarter grew 7.37 percent to $5,551 million from $5,170 million in the previous year period. Total expenses were 93.97 percent of quarterly revenues, up from 93.25 percent for the same period last year. That has resulted in a contraction of 72 basis points in operating margin to 6.03 percent.
Operating income for the quarter was $335 million, compared with $349 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $450 million compared with $497 million in the prior year period. At the same time, adjusted EBITDA margin contracted 151 basis points in the quarter to 8.11 percent from 9.61 percent in the last year period.
“PAA reported third-quarter adjusted EBITDA of $450 million, which included solid performance in our fee-based Facilities segment and in-line performance from our fee-based Transportation segment, offset by Supply and Logistics segment performance that was below the low-end of our third quarter guidance. Our third quarter Supply and Logistics segment was impacted by a combination of delayed EBITDA recognition associated with our NGL inventory costing and the timing of crude oil sales, as well as lower than forecasted EBITDA as a result of continued margin compression and less favorable market conditions for both our crude oil and NGL activities,” said Greg Armstrong, Chairman and Chief executive officer of Plains All American.
Working capital remains negative
Working capital of Plains All American Pipeline, L.P was negative $304 million on Sep. 30, 2016 compared with negative $520 million on Sep. 30, 2015. Current ratio was at 0.93 as on Sep. 30, 2016, up from 0.85 on Sep. 30, 2015. Days sales outstanding went down to 22 days for the quarter compared with 40 days for the same period last year.
Debt comes down
Plains All American Pipeline, L.P has recorded a decline in total debt over the last one year. It stood at $9,634 million as on Sep. 30, 2016, down 9.55 percent or $1,017 million from $10,651 million on Sep. 30, 2015. Total debt was 40.98 percent of total assets as on Sep. 30, 2016, compared with 47.94 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 3.07 for the quarter from 3.09 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
