Boston, MA 02/11/2014 (wallstreetpr) – Boardwalk Pipeline Partners, LP (NYSE:BWP) tumbled the most in the market in over four years after recording some of the worst results for its fourth quarter. The natural gas transporter that is majority owned by Lows Corp saw it shares tumble by up to 39% on Monday trading session to reach low levels of $14.73. This is the biggest intraday decline since May 2010 when the world economic crisis was at its peak.
Boardwalk results
The natural gas transporter saw its net income for the fourth quarter drop by a staggering 78% to come in at $19.5 million a massive drop from $90.1 million that was reported a year ago same quarter. The net income per unit came in at $0.08 down from 0.38 that was recorded same quarter a year ago. Lower transportation revenues has been cited as the main reason for the slump in net income that only contributed $13.3 million. The lower transportation revenues were as a result of contract expirations and renewals.
Boardwalk Pipeline partners, LP (NYSE:BWP)’s parking, lending and storage revenues dropped by $3.6 million attributed to decreased parking opportunities as a result of a reduction of the level and volatility of natural gas price. Impairment charges amounting to $51.5 million negatively impacted Boardwalk operating expenses. The company’s operating revenues for the quarter stood at $312.9 million a drop from $325.7 million recorded similar quarter a year ago.
The increased gas production in the US seem to have impacted Boardwalk negatively as its transportation rates declined and with the expected decline in storage services the company is not expected to perform even better in the coming quarters according to its Chief Executive officer Stanley Horton
The unexpected quarter four results had a massive impact on Boardwalk Pipeline partners, LP (NYSE:BWP)’s stock as it faced the full wrath of the market slumping by 45.99% to close the day at an all-time low of $13.01.
