Southcross Energy Partners, L.P (SXE) saw its loss narrow to $15.38 million, or $0.19 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $15.52 million, or $0.27 a share. Revenue during the quarter grew 29.59 percent to $155.16 million from $119.73 million in the previous year period. Gross margin for the quarter contracted 535 basis points over the previous year period to 14.28 percent. Operating margin for the quarter stood at negative 2.88 percent as compared to a negative 2.44 percent for the previous year period.
Operating loss for the quarter was $4.47 million, compared with an operating loss of $2.93 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $18.02 million compared with $20.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 567 basis points in the quarter to 11.61 percent from 17.29 percent in the last year period.
“In the first quarter of 2017, we benefited from companywide cost-savings initiatives started at the end of last year, including lower operational expenses at our facilities,” said Bruce A. Williamson, president and chief executive officer of Southcross’ general partner. “When adjusting for the decrease in volumes from the planned shut-down of our Conroe facility, we are starting to see our processed gas volumes stabilize, which is consistent with the recent increase in rig counts in the Eagle Ford Shale.”
Operating cash flow turns positive
Southcross Energy Partners, L.P has generated cash of $0.19 million from operating activities during the quarter as against cash outgo of $17.17 million in the last year period. The company has spent $5.07 million cash to meet investing activities during the quarter as against cash outgo of $10.42 million in the last year period.
The company has spent $11.90 million cash to carry out financing activities during the quarter as against cash inflow of $29.02 million in the last year period.
Cash and cash equivalents stood at $4.44 million as on Mar. 31, 2017, down 65.24 percent or $8.33 million from $12.78 million on Mar. 31, 2016.
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