Suburban Propane Partners, L.P. Reports 2024 Fiscal Year and Fourth Quarter Financial Results
WHIPPANY, N.J., Nov. 14, 2024 - Suburban Propane Partners, L.P. (NYSE: SPH) reported its financial results for the full fiscal year and fourth quarter ended September 28, 2024.
Key Financial Metrics:
| Metric | Fiscal 2024 | Fiscal 2023 | YoY Change | 4Q 2024 | 4Q 2023 | QoQ Change |
|---|---|---|---|---|---|---|
| Net Income | $74.2M | $123.8M | -40.1% | -$44.6M | -$20.9M | -113.4% |
| Earnings per Common Unit | $1.15 | $1.94 | -40.7% | -$0.69 | -$0.33 | -109.1% |
| Adjusted EBITDA | $250.0M | $275.0M | -9.1% | $0.8M | $3.0M | -73.3% |
Suburban Propane reported a challenging fiscal year, primarily impacted by lower propane volumes due to unseasonally warm weather. Revenues from RNG were also influenced by lower environmental attribute prices and production delays caused by storms.
Revenue Performance by Segment:
| Segment | Fiscal 2024 Revenue | Previous Year | 4Q 2024 Revenue | Previous Quarter |
|---|---|---|---|---|
| Retail Propane Gallons Sold | 378.3M gallons | -4.6% | 59.7M gallons | -8.1% |
The retail propane segment experienced a decline largely due to higher than average temperatures, which decreased demand. However, RNG production improvements were noted, despite facing pricing challenges in environmental credits.
Operational Highlights:
- Acquired three propane businesses totaling $14.3 million.
- RNG facility in Arizona increased production efficiency, peaking at 1,535 MMBtu per day.
- Continued progress on RNG facilities in Ohio and New York, targeted for completion in late 2025.
Executive Commentary:
CEO Michael A. Stivala emphasized the resilience of the company amidst adverse weather conditions and detailed the efforts towards strategic growth initiatives like optimizing core propane services and expanding renewable energy operations. Future plans include capital investments in RNG upgrades and acquisitions in strategic markets.
Dividend Announcement:
The Board declared a quarterly distribution of $0.325 per Common Unit, or $1.30 annualized, paid on November 12, 2024.
Forward Guidance:
Suburban Propane refrained from providing specific financial guidance. Management maintains a focus on strategic growth and operational excellence within existing market conditions.
Stock Price Movement:
Post earnings announcement, Suburban Propane’s stock price saw a decline of 1.05%, reflecting market reactions to the financial disclosures.
In summary, while Suburban Propane faced a challenging fiscal year due to warm weather affecting retail propane demand, they continue to invest in renewable operations and strategic acquisitions aligning with long-term growth goals.
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