TC Pipelines LP (TCP) has reported an 18.37 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $58 million, or $0.65 a share in the quarter, compared with $49 million, or $0.70 a share for the same period last year.
Revenue during the quarter grew 9.64 percent to $91 million from $83 million in the previous year period. Total expenses were 62.64 percent of quarterly revenues, up from 61.45 percent for the same period last year. That has resulted in a contraction of 119 basis points in operating margin to 37.36 percent.
"Our diverse portfolio of pipeline assets continued to deliver strong financial results this quarter, generating increased earnings and cash flow compared to the same quarter in 2015," said Brandon Anderson, President of TC PipeLines, GP, Inc. "Our results reflect the addition of PNGTS to our partnership along with solid results from both GTN and Great Lakes during the quarter. GTN continued to benefit from increased demand for its short-term transportation services and contracting on Great Lakes has improved year-over-year."
Operating cash flow improves significantly
TC Pipelines LP has generated cash of $256 million from operating activities during the nine month period, up 69.54 percent or $105 million, when compared with the last year period.
The company has spent $165 million cash to meet investing activities during the nine month period as against cash outgo of $258 million in the last year period.
The company has spent $58 million cash to carry out financing activities during the nine month period as against cash inflow of $125 million in the last year period.
Cash and cash equivalents stood at $72 million as on Sep. 30, 2016, up 157.14 percent or $44 million from $28 million on Sep. 30, 2015.
Working capital increases sharply
TC Pipelines LP has recorded an increase in the working capital over the last year. It stood at $41 million as at Sep. 30, 2016, up 1,950 percent or $39 million from $2 million on Sep. 30, 2015. Current ratio was at 1.56 as on Sep. 30, 2016, up from 1.03 on Sep. 30, 2015.
Days sales outstanding went down to 34 days for the quarter compared with 35 days for the same period last year.
Debt remains almost stable
TC Pipelines LP has witnessed an increase in total debt over the last one year. It stood at $1,923 million as on Sep. 30, 2016, up 1 percent or $19 million from $1,904 million on Sep. 30, 2015. Total debt was 60.45 percent of total assets as on Sep. 30, 2016, compared with 57.56 percent on Sep. 30, 2015.
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