Star Gas Partners ( (SGU) ) has released its Q4 earnings. Here is a breakdown of the information Star Gas Partners presented to its investors.
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Star Group, L.P. is a prominent home energy distributor and service provider, specializing in the sale of home heating products, including heating oil, propane, and HVAC services, primarily serving customers in the Northeast and Mid-Atlantic regions of the United States.
In its fiscal 2024 fourth-quarter earnings report, Star Group announced a decrease in total revenue and an increased net loss compared to the prior year. Despite these challenges, the company highlighted an increase in profitability from service and installation segments and higher per-gallon margins for heating oil and propane.
Key highlights include a 10% decline in fourth-quarter revenue to $240.3 million and an increased net loss of $35.1 million. The company’s Adjusted EBITDA showed a slight improvement, with a loss of $29.7 million, driven by improved margins and acquisition contributions. For the full fiscal year, Star Group reported a 9.6% revenue drop to $1.8 billion, while net income rose to $35.2 million, owing to a rise in Adjusted EBITDA by $14.7 million.
Despite facing challenges like customer attrition and decreased sales volumes, Star Group remains committed to cost management and strategic acquisitions. The company expresses confidence in its preparedness for the upcoming heating season, aiming to deliver superior customer service amidst varying weather conditions.
