TC PipeLines LP (TCP) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $60 million, or $ 0.70 a share in the quarter, against a net loss of $137 million, or $2.24 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $60 million, or $0.70 a share compared with $62 million or $0.79 a share, a year ago.
Revenue during the quarter went up marginally by 2.25 percent to $91 million from $89 million in the previous year period. Total expenses were 64.84 percent of quarterly revenues, down from 68.54 percent for the same period last year. This has led to an improvement of 370 basis points in operating margin to 35.16 percent.
Operating income for the quarter was $32 million, compared with $28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $98 million compared with $99 million in the prior year period.
"The Partnership delivered solid results in 2016, reflecting the strength and stability of our portfolio of high quality, FERC-regulated natural gas pipelines, all of which are underpinned by long-term, ship-or-pay contracts with creditworthy customers," said Brandon Anderson, president of TC PipeLines GP, Inc. "Our steady financial performance positions us for additional dropdown transactions as well as other organic growth opportunities."
Operating cash flow improves
TC PipeLines LP has generated cash of $381 million from operating activities during the year, up 19.44 percent or $62 million, when compared with the last year.
The company has spent $229 million cash to meet investing activities during the year as against cash outgo of $326 million in the last year.
The company has spent $141 million cash to carry out financing activities during the year as against cash inflow of $20 million in the last year period.
Cash and cash equivalents stood at $50 million as on Dec. 31, 2016, up 28.21 percent or $11 million from $39 million on Dec. 31, 2015.
Working capital increases sharply
TC PipeLines LP has recorded an increase in the working capital over the last year. It stood at $36 million as at Dec. 31, 2016, up 63.64 percent or $14 million from $22 million on Dec. 31, 2015. Current ratio was at 1.55 as on Dec. 31, 2016, up from 1.37 on Dec. 31, 2015.
Debt comes down marginally
TC PipeLines LP has recorded a decline in total debt over the last one year. It stood at $1,858 million as on Dec. 31, 2016, down 2.36 percent or $45 million from $1,903 million on Dec. 31, 2015. Total debt was 58.83 percent of total assets as on Dec. 31, 2016, compared with 60.74 percent on Dec. 31, 2015.
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