Aug 1 (Reuters) - Williams Companies Inc, which is a pipeline and gas processing company, reported lower second-quarter earnings on Wednesday, as a steep drop in natural gas liquids margins hurt results.
Feedstocks like propane and butane can be stripped from “liquids rich” natural gas and sold at a premium. But inventories are high, a factor that is depressing prices.
Williams, which warned on results last month, reported net income of $132 million, or 21 cents per share, compared with $227 million, or 38 cents per share, a year ago.
Earnings excluding items were 22 cents a share, in line with the company’s prior forecast.
Natural gas liquids margins fell 25 percent from a year ago, a factor that hurt profits at the company’s gas processing business, it said.