Williams Posts Lower 2Q Profit, Revenue
August 03 2020 - 5:51PM
Dow Jones News
By Kimberly Chin
Williams Cos. reported lower profit and revenue in the fiscal
second quarter as geopolitical tensions and the Covid-19 pandemic
roiled the energy industry.
However, the company said it continues to see demand for natural
gas. "Even with the significant and unexpected disruptions caused
by geopolitical oil disputes, the COVID-19 pandemic and a tropical
storm, our earnings remained consistent with our projections,
largely due to the stability of our natural gas-focused business,
our minimal exposure to commodity price volatility, and our
proactive cost reductions instituted last year," said Chief
Executive Alan Armstrong in prepared remarks.
The oil and natural gas pipeline operator said profit was $303
million, or 25 cents a share, down from $310 million, or 26 cents a
share, in the comparable period last year. Excluding non-cash
impairment charges, adjusted earnings were also 25 cents a share.
Analysts were expecting 24 cents an adjusted share, according to a
FactSet poll.
Total costs and expenses fell 24% to $1.17 billion, largely due
to lower operating and administrative expenses, including employee
costs.
It also had higher equity earnings from its Northeast gathering
and processing (G&P) investments, the company said.
Total revenue fell to $1.78 billion from $2.04 billion a year
earlier, mainly due to lower deferred revenue at its Gulfstar One
and Barnett projects, as well as the termination of its Barnett
minimum-volume commitments last year. Analysts projected revenue of
$1.79 billion.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
August 03, 2020 17:36 ET (21:36 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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