• Linkdin

Higher ethylene margins improve Williams results in Q1

28 Apr '12
5 min read

Williams' business segments for financial reporting are Williams Partners, Midstream Canada & Olefins, and Other. The Williams Partners segment includes the consolidated results of Williams Partners L.P., and Midstream Canada & Olefins includes the results of Williams' Canadian midstream and domestic olefins business.

Williams Partners is focused on natural gas transportation, gathering, treating, processing and storage; NGL fractionation; and oil transportation.

For first-quarter 2012, Williams Partners reported segment profit of $488 million, compared with $437 million for first-quarter 2011.

Higher fee-based revenues and NGL margins in the partnership's midstream business, as well as improved results in the gas pipeline business, drove the improvement in the first quarter. A decline in margins related to the marketing of NGLs for the partnership and third parties, together with higher selling, general and administrative expenses partially offset these improvements.

The improvement in Williams Partners' gas pipeline business was primarily due to increased revenue from expansion projects placed into service in 2011.

Midstream Canada & Olefins includes Williams' operations in the United States and Canada focused on recovering and producing ethylene, propylene, NGLs and other related products.

Midstream Canada & Olefins reported segment profit of $103 million for first-quarter 2012, compared with $74 million for first-quarter 2011.

Higher per-unit Geismar ethylene production margins, as well as higher volumes, were the primary driver of the improved segment profit in first-quarter 2012.

The Other segment benefited from gains related to the 2010 sale of the company's Accroven investment in Venezuela of $53 million in 2012 and $11 million in 2011.

Williams' 2012 and 2014 adjusted earnings per share guidance, issued on March 19 in conjunction with Williams Partners' Caiman acquisition, is being slightly increased. Previous adjusted earnings per share guidance for 2013 is unchanged.

Williams' guidance midpoints for expected adjusted earnings per share are $1.40 in 2012, $1.55 in 2013 and $1.83 in 2014. The projected adjusted earnings per share amount of $1.83 in 2014 is a 49-percent increase over Williams' 2011 adjusted earnings per share of $1.23.

The company's capital expenditure outlook for 2012 and 2014 is unchanged from the guidance issued on March 19. Capital expenditure guidance for 2013 is being increased by $75 million at the midpoint, primarily to reflect Williams Partners' Virginia Southside expansion project on the Transco system.

The company also continues to expect a full-year 2012 dividend to shareholders of $1.20 per share. The planned 2012 dividend is a 55 percent increase over the full-year 2011 dividend to shareholders of $0.775 per share. The company also continues to expect an increase of its dividend by 20 percent in both 2013 and 2014.

The Williams Companies Inc

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search