Star Gas Partners ( (SGU) ) has released its Q1 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 leading home energy distributor providing heating products and services to residential and commercial customers across the Northeast and Mid-Atlantic regions of the United States, recognized as the nation’s largest retail distributor of home heating oil by sales volume.
In the fiscal 2025 first quarter, Star Group reported a decline in total revenue by 7.6% to $488.1 million, primarily driven by a decrease in average petroleum prices, despite a slight increase in product volumes and improved revenue from service and installation activities. The company also saw a notable increase in net income to $32.9 million, mainly due to favorable changes in derivative instrument valuations and an increase in Adjusted EBITDA.
Key financial highlights include a 2.8% rise in the volume of home heating oil and propane sold, reaching 82.4 million gallons, attributed to acquisitions and colder weather conditions. Adjusted EBITDA improved by $2.8 million to $51.9 million, with recent acquisitions and higher per-gallon margins offsetting a decrease in base business volumes. Despite the revenue dip, Star Group successfully managed to enhance its margins and operational efficiency.
Looking forward, Star Group remains optimistic about its performance for the rest of the fiscal year. The company is leveraging colder temperatures in the current quarter and focusing on service quality and reliability to sustain its market position and continue its growth trajectory. Management is also enthusiastic about the impact of recent strategic acquisitions on strengthening their propane operations.
