Boston, MA 05\/12\/2014 (wallstreetpr) – Star Gas Partners, L.P. (NYSE:SGU) <\/b>increased its volume of home heating oil and propane by 23.5 million gallons (up by ~15%) to 187.9 million gallons due to very cold weather conditions. It helps the energy provider to report an increase in revenue during its second quarter ended March 31, 2014. Revenues were up by 13.6% to $892.2 million versus $785.1 million a year\u2019s ego.<\/p>\n
Moreover, the additional volume from acquisitions of Griffith Energy offset the losses incurred from customer attrition in last 12 months. Consequently, it improved the Company\u2019s adjusted EBITDA by $26.9 million to $103.0 million and net income by $10.5 million to $52.2 million.<\/p>\n
Seasonality compress cash flow and liquidity<\/b><\/p>\n
Star Gas Partners, L.P. (NYSE:SGU) used cash in operations during the winter as it requires additional working capital to support higher volumes. So, the operation cash flow used during the period was $121.7 million, lower than the same period last year due to increased profit. In addition, higher cash used related to Griffith\u2019s acquisition further compressed the Company\u2019s free cash flow, which was partly offset by $195.5 million of external borrowings under revolving credit facility.<\/p>\n
In the near term, Star has a cash balance of $13 million to support its operation, however, need additional funds such as revolving credit facility to finance its working capital requirement. The Company\u2019s total debt was $290.3 million including revolving credit borrowings of $165.7 million as of March 31, 2014.<\/p>\n
Moving forward<\/b><\/p>\n
Star Gas Partners, L.P. (NYSE:SGU) sees potential opportunities to grow in the future, therefore, continues to expand its operations as well as service offerings to improve its performance. Going forward, the addition of Griffith Energy will further increase its volume that helps the energy provider to access ~50,000 residential and commercial customers in the Mid-Atlantic region.<\/p>\n
In contrast, the seasonal nature of the business will impact Star Gas Partners, L.P. (NYSE:SGU)\u2019s performance in forthcoming quarters as a result of lower volumes and revenue losses.<\/p>\n
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Brookfield Infrastructure Partners L.P. (NYSE:BIP) Plans Up To $1 Billion Investment This Year<\/span><\/b><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Boston, MA 05\/12\/2014 (wallstreetpr) – Star Gas Partners, L.P. (NYSE:SGU) increased its volume of home heating oil and propane by 23.5 million gallons (up by […]<\/p>\n","protected":false},"author":12,"featured_media":18016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[5493,5495],"stock_ticker":[],"class_list":["post-21847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysesgu","tag-star-gas-partners-l-p-nysesgu","entry"],"acf":[],"yoast_head":"\n