After the sale of its holdings in a Geismar, Louisiana plant, Tulsa’s Williams Partners announced second quarter net income of $81 million.
The Geismar sale totaled $2.1 billion in cash and proceeds were used to pay off an $850 million term loan and also prefund part of growth capex.
The $81 million net income was an improvement of $486 million over second quarter 2016. The company said the favorable change was driven by an $869 million improvement in operating income reflecting a $777 million decline in impairments of some assets.
But the company also said the improvements were offset partially by “unfavorable changes in income tax provision and income attributable to non-controlling interests, both driven by higher income.”
Second quarter Adjusted EBITDA totaled $1.113 billion which was $48 million more than one year ago. The company said the improvement was due to $18 million increased fee-based revenues and a $24 million increase in EBITDA of joint ventures in the Williams Partners segment.
Year-to-date, Williams reported Adjusted EBITDA of $2.258 billion, an increase of $137 million over the same six-month reporting period in 2016. Growth was reported in the company’s operations of natural gas lines in the northeast part of the U.S.
“In addition to year-over-year fee-based revenue growth in the Atlantic-Gulf, we also saw gathered volumes in the West up approximately 4 percent versus first-quarter 2017, adjusted for the Marcellus-Permian transaction,” said Alan Armstrong, president and chief executive officer.