Spectra Energy Corporation (SE) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $115 million, or $ 0.16 a share in the quarter, against a net loss of $263 million, or $0.39 a share in the last year period.
Revenue during the quarter went down marginally by 1.37 percent to $1,298 million from $1,316 million in the previous year period. Total expenses were 71.26 percent of quarterly revenues, down from 92.63 percent for the same period last year. This has led to an improvement of 2137 basis points in operating margin to 28.74 percent.
Operating income for the quarter was $373 million, compared with $97 million in the previous year period.
"2016 was a transformational year for Spectra Energy. I'm proud of all we accomplished, but most importantly that we continued our track record of delivering on our commitments to all our stakeholders," said Greg Ebel, chief executive officer, Spectra Energy.
Working capital remains negative
Working capital of Spectra Energy Corporation was negative $2,133 million on Dec. 31, 2016 compared with negative $1,744 million on Dec. 31, 2015. Current ratio was at 0.45 as on Dec. 31, 2016, down from 0.49 on Dec. 31, 2015.
Debt moves up
Spectra Energy Corporation has witnessed an increase in total debt over the last one year. It stood at $13,624 million as on Dec. 31, 2016, up 5.68 percent or $732 million from $12,892 million on Dec. 31, 2015. Total debt was 36.98 percent of total assets as on Dec. 31, 2016, compared with 39.16 percent on Dec. 31, 2015. Debt to equity ratio was at 1.18 as on Dec. 31, 2016, down from 1.35 as on Dec. 31, 2015. Interest coverage ratio improved to 2.38 for the quarter from 0.62 for the same period last year.
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