SemGroup Corporation (SEMG) saw its loss narrow to $10.28 million, or $0.16 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $13.91 million, or $0.32 a share.
Revenue during the quarter surged 44.86 percent to $456.10 million from $314.85 million in the previous year period. Gross margin for the quarter contracted 1397 basis points over the previous year period to 23.48 percent. Total expenses were 94.86 percent of quarterly revenues, up from 89.73 percent for the same period last year. That has resulted in a contraction of 512 basis points in operating margin to 5.14 percent.
Operating income for the quarter was $23.46 million, compared with $32.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $60.67 million compared with $77.68 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1137 basis points in the quarter to 13.30 percent from 24.67 percent in the last year period.
"In the first quarter, we continued to execute on a number of large projects including our Maurepas Pipeline, which we expect to be completed late second quarter 2017. In addition, we progressed on our Wapiti sour gas plant in Alberta and our STACK play crude extension of the Glass Mountain Pipeline," said SemGroup president and chief executive officer Carlin Conner.
Working capital increases marginally
SemGroup Corporation has recorded an increase in the working capital over the last year. It stood at $136.95 million as at Mar. 31, 2017, up 3.45 percent or $4.57 million from $132.38 million on Mar. 31, 2016. Current ratio was at 1.26 as on Mar. 31, 2017, down from 1.42 on Mar. 31, 2016.
Days sales outstanding went down to 33 days for the quarter compared with 90 days for the same period last year.
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