SemGroup Corporation (SEMG) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $7.36 million, or $ 0.14 a share in the quarter, against a net profit of $4.87 million, or $0.11 a share in the last year period. Revenue during the quarter dropped 17.45 percent to $327.76 million from $397.06 million in the previous year period. Gross margin for the quarter expanded 250 basis points over the previous year period to 33.34 percent. Total expenses were 92.08 percent of quarterly revenues, up from 90.58 percent for the same period last year. That has resulted in a contraction of 150 basis points in operating margin to 7.92 percent.
Operating income for the quarter was $25.96 million, compared with $37.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $71.29 million compared with $75.95 million in the prior year period. At the same time, adjusted EBITDA margin improved 262 basis points in the quarter to 21.75 percent from 19.13 percent in the last year period.
"SemGroup delivered solid results for the third quarter and continued to execute key steps in our growth strategy," said Carlin Conner, president and chief executive officer of SemGroup. "In addition to the acquisition of our former MLP, we also made construction progress on Maurepas Pipeline and announced plans to build a new Canadian sour gas plant, which we expect to be fully contracted by startup. By focusing on regional customer infrastructure gaps, we are capturing growth opportunities in this ‘lower for longer’ market."
Working capital increases marginally
SemGroup Corporation has recorded an increase in the working capital over the last year. It stood at $196.72 million as at Sep. 30, 2016, up 1.89 percent or $3.65 million from $193.07 million on Sep. 30, 2015. Current ratio was at 1.47 as on Sep. 30, 2016, down from 1.51 on Sep. 30, 2015. Days sales outstanding went down to 52 days for the quarter compared with 82 days for the same period last year.
Debt increases substantially
SemGroup Corporation has witnessed an increase in total debt over the last one year. It stood at $1,030.16 million as on Sep. 30, 2016, up 2,784,129.73 percent or $1,030.13 million from $0.04 million on Sep. 30, 2015. 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
