WASHINGTON (dpa-AFX) - Enterprise Products Partners L.P. (EPD), which owns and operates natural gas liquids related businesses of Enterprise Products Co., Tuesday reported higher profit in its first quarter benefited by increased revenues and margin.
In its first quarter, the company's net income attributable to limited partners rose 16 percent to $753.5 million from $651.3 million a year ago. Earnings per unit increased 14 percent to $0.83 from $0.73 last year.
The latest quarter results included $64 million or $0.07 per unit of gains primarily from the sale of assets, partly offset by $11 million or $0.01 per unit of non-cash asset impairment charges. The prior year's results included an income tax benefit of $47 million or $0.05 per unit and gains of $53 million or $0.06 per unit from the sale of common units of Energy Transfer Equity, L.P.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.65 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the period totaled $11.38 billion, higher than the previous year's $11.25 billion. Analysts estimated revenues of $11.61 billion for the quarter.
Gross operating margin was $1.2 billion, compared to $1.1 billion last year. Adjusted earnings before interest, taxes and depreciation or adjusted EBITDA, a key earnings metric, increased from last year.
The company's operations generated distributable cash flow of $935 million in the quarter, a 32 percent increase from a year ago, excluding the proceeds from asset sales and insurance recoveries and losses from interest rate hedges.
Chief Executive Officer Michael Creel said, 'The composition of the partnership's earnings for the first quarter of 2013 continued the trend that began during the second half of 2012. Investments in our fee-based businesses are generating increases in gross operating margin that more than offset the weakness in our natural gas processing and related NGL marketing activities due to weaker processing margins, reduced drilling in certain areas and a decrease in ethane extracted at processing plants.'
For the remainder of 2013, the company said it is scheduled to complete construction and begin commercial activities related to growth capital projects representing $2.2 billion of investment.
Enterprise Products shares closed Monday's trading at $61.05, up $0.26 or 0.43 percent.
Copyright(c) 2013 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2013 AFX News
