Williams Partners lowers FY14 financial guidance due to delays at Geismar Williams Partners is lowering its financial guidance for 2014; financial guidance for 2015 and 2016 are unchanged. The 2014 change is primarily the result of delays in Geismar’s expected in-service date and increased construction spending. The updated guidance also reflects various other changes since the company issued guidance in October 2013. “The strength of Williams Partners’ ongoing business allows us to preserve the growth reflected in its 2015 and 2016 financial guidance,” said Alan Armstrong CEO. “We are lowering the 2014 guidance primarily as a result of delays and cost increases specific to work to bring the expanded, rebuilt Geismar facility back into service. We are now targeting late July for initiation of the startup process.” The Geismar plant rebuild and expansion projects are targeted for initiation of startup in late July. Williams Partners’ financial guidance assumes ethylene sales commencing in mid-August. The delay from the previous expectation of startup initiation in late June resulted from lower than planned construction labor productivity and other factors on both the rebuild and expansion projects. The Geismar expansion project capital spending is expected to increase to $715M, up $65M from previous guidance, primarily as a result of such delays. The company projects total cash distribution in 2014 to be $2.34B-$2.4B; DCF attributable to partnership operations of $2B-$2.2B.
Williams Partners raises quarterly dividend 5.8% to 92.85c The board of the partnership's general partner has approved the quarterly cash distribution, which is payable on Nov. 7 to common unitholders of record at the close of business on Oct. 31.