North America’s energy infrastructure giant Kinder Morgan Inc. (NYSE:KMI) moved back to profit in the final three month of the year as company booked a smaller write-down, yet revenue dropped more than forecasted.
Kinder Morgan Inc. (NYSE:KMI) early in 2016 slashed its expenses plans and shed assets in an aim to enhance finances and live through a commodities decline.
The energy sector giant revealed Wednesday that it has significantly slashed its debt over the twelve month period and didn’t have to tap capital markets to finance growth projects.
During the December quarter, the company’s project backlog fell to $12 billion from $13 billion in the previous quarter because of the completion of its Southern Natural Gas pipeline and Elba Express Company expansions, its South System Flexibility project and Cortez Pipeline expansion, as well as the delivery of the American Endurance tanker.
In all for the fourth quarter, Kinder Morgan posted a profit of $209 million, in contrast with a year-earlier drop of $695 million. On a per-share basis, which comprised preferred dividend effects, the company managed 8 cents, in contrast with a 32-cent loss year over year. Meanwhile Analysts had the prediction of 18 cents a share.
Furthermore Kinder Morgan Inc. (NYSE:KMI) last quarter involved a $250 million write-down of the firm’s equity investment in the Ruby pipeline, determined by a delay in likely West Coast natural-gas demand growth to beyond 2021. But the same quarter year before included a goodwill impairment of $1.15 billion.
Revenue slid 6.8% to $3.39 billion, less than average analyst predictions for $3.54 billion.