Star Gas Partners L.P. (SGU, Financial) filed Quarterly Report for the period ended 2009-03-31.
Star Gas Partners L.P. is a publicly traded limited partnership.The Partnership is primarily engaged in the retail distribution of propane andrelated supplies and equipment to residential commercial industrialagricultural and motor fuel customers. Star Gas Partners L.P. has a market cap of $240.3 million; its shares were traded at around $3.17 with and P/S ratio of 0.2. The dividend yield of Star Gas Partners L.P. stocks is 8.5%.
For the three months ended March 31, 2009, cost of product decreased $167.6 million, or 34.1%, to $323.6 million, as compared to $491.2 million for the three months ended March 31, 2008, as the increase in home heating oil sold was more than offset by the impact of a decrease in wholesale product cost. Average wholesale product cost for home heating oil decreased by $0.9358 per gallon, or 35.1%, to an average of $1.7291 per gallon for the three months ended March 31, 2009, from an average of $2.6649 for the three months ended March 31, 2008.
During the three months ended March 31, 2009, cost of installations and service decreased $0.5 million, or 1.1%, to $44.8 million, as compared to $45.3 million for the three months ended March 31, 2008, as an increase in service expenses of $1.3 million was reduced by lower installation costs of $1.8 million. Service expense rose due to the additional demand for service resulting from colder temperatures and higher vehicle fuel costs of $0.5 million, as the Partnership hedged a portion of its vehicle fuel costs during a higher cost period. Service costs as a percentage of service sales increased to 114.2% for the three months ended March 31, 2009, as compared to 110.3% of service sales for the three months ended March 31, 2008 due to the colder temperatures, the decline in ancillary plumbing revenue and the increase in vehicle fuel costs.
For the three months ended March 31, 2009, delivery and branch expenses increased $4.8 million, or 7.2%, to $71.6 million, as compared to $66.8 million for the three months ended March 31, 2008. While bad debt expense declined by $1.0 million due to the 21.8% decline in sales dollars, delivery expense increased by $3.0 million due to the increase in volume and higher fuel costs of $1.0 million, as the Partnership hedged a portion of its vehicle fuel costs during a higher cost period. Insurance expense also increased by $1.5 million due in part to the higher volume sold. On a cents per gallon basis, delivery and branch expenses increased 1.2 cents per gallon, or 3.1%, from 39.4 cents per gallon for the three months ended March 31, 2008 to 40.6 cents per gallon for the three months ended March 31, 2009.
For the three months ended March 31, 2009, operating income increased $61.7 million to $110.8 million, as compared to $49.1 million for the three months ended March 31, 2008, as an increase in product gross profit of $25.5 million and a favorable change in the impact of derivative instruments of $44.1 million was reduced by higher operating costs (including depreciation and amortization) of $5.7 million and lower net service and installation gross profit of $2.1 million.
For the three months ended March 31, 2009, net income of $108.7 million was recorded, as compared to net income of $41.6 million for the three months ended March 31, 2008. This increase in net income of $67.1 million was due to a $61.7 million increase in operating income, lower net interest expense of $1.1 million and the gain on bond redemption of $6.2 million. Offsetting these positive impacts on net income was an increase in income tax expense of $1.9 million.
Read the The complete Report
Star Gas Partners L.P. is a publicly traded limited partnership.The Partnership is primarily engaged in the retail distribution of propane andrelated supplies and equipment to residential commercial industrialagricultural and motor fuel customers. Star Gas Partners L.P. has a market cap of $240.3 million; its shares were traded at around $3.17 with and P/S ratio of 0.2. The dividend yield of Star Gas Partners L.P. stocks is 8.5%.
Highlight of Business Operations:
For the three months ended March 31, 2009, product sales decreased $142.2 million, or 22.9%, to $478.7 million, as compared to $620.9 million for the three months ended March 31, 2008, as an increase in home heating oil volume of 3.9% was more than offset by the impact of a decrease in home heating oil selling prices. Average home heating oil selling prices decreased by $0.8273 per gallon, or 24.3%, from $3.4083 per gallon for the three months ended March 31, 2008 to $2.5810 for the three months ended March 31, 2009 in response to the 35.1% per gallon decrease in home heating oil wholesale products costs described below. Product sales also rose due to an increase in billed liquidated damages of $1.1 million for protected price account terminations.For the three months ended March 31, 2009, cost of product decreased $167.6 million, or 34.1%, to $323.6 million, as compared to $491.2 million for the three months ended March 31, 2008, as the increase in home heating oil sold was more than offset by the impact of a decrease in wholesale product cost. Average wholesale product cost for home heating oil decreased by $0.9358 per gallon, or 35.1%, to an average of $1.7291 per gallon for the three months ended March 31, 2009, from an average of $2.6649 for the three months ended March 31, 2008.
During the three months ended March 31, 2009, cost of installations and service decreased $0.5 million, or 1.1%, to $44.8 million, as compared to $45.3 million for the three months ended March 31, 2008, as an increase in service expenses of $1.3 million was reduced by lower installation costs of $1.8 million. Service expense rose due to the additional demand for service resulting from colder temperatures and higher vehicle fuel costs of $0.5 million, as the Partnership hedged a portion of its vehicle fuel costs during a higher cost period. Service costs as a percentage of service sales increased to 114.2% for the three months ended March 31, 2009, as compared to 110.3% of service sales for the three months ended March 31, 2008 due to the colder temperatures, the decline in ancillary plumbing revenue and the increase in vehicle fuel costs.
For the three months ended March 31, 2009, delivery and branch expenses increased $4.8 million, or 7.2%, to $71.6 million, as compared to $66.8 million for the three months ended March 31, 2008. While bad debt expense declined by $1.0 million due to the 21.8% decline in sales dollars, delivery expense increased by $3.0 million due to the increase in volume and higher fuel costs of $1.0 million, as the Partnership hedged a portion of its vehicle fuel costs during a higher cost period. Insurance expense also increased by $1.5 million due in part to the higher volume sold. On a cents per gallon basis, delivery and branch expenses increased 1.2 cents per gallon, or 3.1%, from 39.4 cents per gallon for the three months ended March 31, 2008 to 40.6 cents per gallon for the three months ended March 31, 2009.
For the three months ended March 31, 2009, operating income increased $61.7 million to $110.8 million, as compared to $49.1 million for the three months ended March 31, 2008, as an increase in product gross profit of $25.5 million and a favorable change in the impact of derivative instruments of $44.1 million was reduced by higher operating costs (including depreciation and amortization) of $5.7 million and lower net service and installation gross profit of $2.1 million.
For the three months ended March 31, 2009, net income of $108.7 million was recorded, as compared to net income of $41.6 million for the three months ended March 31, 2008. This increase in net income of $67.1 million was due to a $61.7 million increase in operating income, lower net interest expense of $1.1 million and the gain on bond redemption of $6.2 million. Offsetting these positive impacts on net income was an increase in income tax expense of $1.9 million.
Read the The complete Report
