Ferrellgas Partners (FGP) Q4 Loss Wider Than Estimates
Zacks Investment Research | Sep 27, 2016 10:06PM ET
Ferrellgas Partners LP (NYSE:FGP) reported fourth-quarter fiscal 2016 adjusted loss of $2.51 per unit, significantly wider than the Zacks Consensus Estimate of a loss of 45 cents. Quarterly loss was also wider than the year-ago loss of 48 cents.
In the fiscal fourth quarter, demand for propone was hurt by warmer weather, which in turn impacted the partnership’s bottom line. To be precise, temperature was 19% warmer than normal and 16% warmer than the prior-year period.
GAAP loss in the reported quarter was $6.68 per unit, compared with the year-ago loss of 64 cents.
Total Revenue
In the reported quarter, Ferrellgas Partners’ total revenue came in at $409.5 million, lagging the Zacks Consensus Estimate of $438 million by 6.5%. However on a year-over-year basis, the partnership’s top line improved 7.1% primarily due to strong midstream operations, partially offset by lower sales of propane and other gas liquids because of warmer temperatures.
Highlights of the Release
In the fiscal fourth quarter, total propane sales volume declined 9.3% year over year to 143.7 million gallons due to lower wholesale and retail sales. Sales were hurt by warmer weather, which led to reduced demand for propane for heating purposes.
Operating expenses in the reported quarter were $111.3 million, down 3.6% from the prior-year level.
General and administrative expenses for the quarter under review decreased to $11.9 million from $26.7 million in the prior-year period.
Interest expenses increased to $35.1 million in the quarter from $28.6 million a year ago, reflecting increased borrowings to fund acquisitions.
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