07 May 2013 22:47 [Source: ICIS news]
HOUSTON (ICIS)--Williams Partners’ net income fell more than 21% in Q1 2013 year on year due to a sharp decline in natural gas liquids (NGL) margins from Q1 2012 and related ethane rejection, the US-based midstream company said on Tuesday.
Net income for Q1 2013 was $321m (€244m), compared with $408m during the same period a year before.
Hurting net income for the quarter were NGL margins, which were down 50% in Q1 2013 compared with Q1 2012, as continued low ethane prices drove system-wide ethane rejection, Williams said. Also, propane and butane prices remained depressed, the company said.
However, higher olefin margins – in particular higher ethylene margins at the company’s ethane cracker in ?xml:namespace>
The company has lowered its guidance for 2013-2014 earnings due to expectations that NGL margins will be under pressure.
Still, CEO Alan Armstrong was pleased with the quarter and optimistic about the future.
"We expect that ongoing tremendous North American energy infrastructure needs will continue to combine with Williams Partners' unique capabilities to create a continuing robust set of investment opportunities,” he said. “As such, we have visibility to very strong growth in our businesses and cash flows beyond 2015 as our new investments develop and as we continue to seize many attractive investment opportunities."
($1 = €0.76)
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