Ferrellgas Partners Posts Higher Profit In Q2 - Update

(RTTNews) - Propane distributor Ferrellgas Partners, L.P. (FGP) Monday reported a higher second-quarter profit, as revenues climbed with 15 percent growth in sales volumes. Adjusted earnings per unit missed analysts' expectations, while revenues came above view.

Steve Wambold, president and chief executive officer of the company said, "The return of more seasonal temperatures drove performance slightly greater than our expectation for the quarter...The third quarter is off to a strong start, with February results behind us and seasonably cool temperatures forecasted for the remainder of the heating season."

For the second quarter ended January 31, 2014, common unitholders' interest in net earnings increased to $56.80 million or $0.72 per share from $55.07 million or $0.70 per share in the previous year.

On an adjusted basis, net earnings per unit available to common unitholders were $0.76 in the recent quarter, while the firm posted $0.73 per share last year. On average, six analysts polled by Thomson Reuters expected earnings per unit of $0.85 for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter climbed to $869.68 million from $658.87 million in the year-ago quarter. Analysts estimated revenues of $722.07 million for the quarter.

Propane and other gas liquids sales increased to $789.45 million from $583.07 million a year earlier.

The company noted that second-quarter sales volumes grew 15 percent to 342.9 million gallons, reflecting nationwide temperatures that were 18 percent colder than in the unusually mild prior-year quarter.

The company also raised its adjusted EBITDA guidance for fiscal 2014 to $275 million to $285 million from the earlier view of $265 million to $275 million.

FGP closed Friday's regular trading at $24.93 on the NYSE. In the pre-market activity, the shares are up 0.28 percent.