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Williams reports loss of $701 million; Geismar plant running at ‘expected’ levels
HOUSTON, February 17, 2016 (PCW) –- Williams on Wednesday reported a net income loss of $701 million in the fourth quarter of 2015, compared with the $193 million seen during the year-earlier period.
The Tulsa-based company attributed the softer earnings to “declines in NGL margins driven by lower prices, and higher depreciation expense due to significant projects that were placed into service.”
Williams’ NGL and Petchems segment saw a 4Q earnings loss of $6 million, a 50% increase from the $4 million loss seen in 4Q 2014.
Williams said the expanded Geismar olefins plant operated at expected production levels in the second half of last year, contributing about $168 million of olefins margins for the year. However, the plant also incurred $311 million in assumed business interruption insurance proceeds related to the 2013 explosion that shuttered the plant for more than a year.
On its pending acquisition by Energy Transfer, Williams said the deal’s closing remains subject to the approvals of its stockholders, among other. However, “integration planning is underway,” the company said.
Williams has seen its stock price plummet since it announced its buyout by Energy Transfer with several stockholders filing lawsuits alleging misrepresentation by Williams executives about the financial gains and synergies of the deal. Several investors and analysts have since questioned whether the deal would be completed. –- Samantha Hartke