Boston, MA 05\/15\/2014 (wallstreetpr) \u2013 Sprague Resources LP (NYSE:SRLP)<\/b> reported its first quarter result ended March 31, 2014 with solid growth in net income to $75.3 million on net sales of $1.9 billion. The significant increase was due to higher volumes of heating oil, industrial fuel oils, natural gas and salt despite challenging supply conditions and sustained cold weather.<\/p>\n
1. Refined Products<\/i><\/p>\n
Sprague brought new customers due to extreme cold and continued natural gas service interruptions. It increased the use of refined products for power generation, and the inclusion of Hess Commercial accounts contributed gain in volumes for the segment. The volumes grew by 33% to 553.9 million gallons in 1Q2014 versus 415.5 million gallons in 1Q2013 that increased the adjusted gross margin by 55% to $44.9 million (1Q2013: $29 million).<\/p>\n
2. Natural gas<\/i><\/p>\n
Sprague Resources LP (NYSE:SRLP) sustained the extreme weather, supply constraints and highly volatile cash pricing and generated 16.5 Bcf of natural gas. As a result, the segment\u2019s adjusted gross margin increased by 73% to $35.3 million in 1Q2014 from $20.4 million in 1Q2013.<\/p>\n
3. Material handling<\/i><\/p>\n
The growing salt inventory and the addition of new geared hopper system in Newington terminal increased the volumes and provide additional revenue. As a result, gross margin improved by 23% to $8.1 million during the quarter.<\/p>\n
The year over year increase in volumes across the segments increased the total gross margin $88.6 million. Consequently, it improved the operating efficiency with adjusted EBITDA of $49.6 million (1Q2013: $26.1 million) and net income to $75.3 million (1Q2013: $28.4 million) or $3.74 per common unit.<\/p>\n
The increasing operating profit improved Sprague\u2019s distributable cash flow to $44.0 million versus pro-forma distributable cash flow of $19.1 million in 1Q2013.<\/p>\n
2014 outlook<\/b><\/p>\n
Sprague Resources LP (NYSE:SRLP) has a logistical advantage over others to supply refined products to its customers, transport cost-effective natural gas and capable of handling salt inventory. The Company continues to create an opportunity to deliver margin growth and expects an adjusted EBITDA of $70 to $80 million in FY2014.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/15\/2014 (wallstreetpr) \u2013 Sprague Resources LP (NYSE:SRLP) reported its first quarter result ended March 31, 2014 with solid growth in net income to […]<\/p>\n","protected":false},"author":32,"featured_media":22361,"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":[5528,5527],"stock_ticker":[],"class_list":["post-22352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysesrlp","tag-sprague-resources-lp-nysesrlp","entry"],"acf":[],"yoast_head":"\n