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Leading propane and other gas liquids sales company, Ferrellgas Partners L.P., has released its quarterly report for the first quarter of 2023.
The report highlights the financial performance and key metrics of the company. The company reported net earnings of $72.4 million for the quarter, reflecting a solid financial performance.
Total Revenues
Total revenues for the quarter amounted to $587.3 million, a decrease from the previous year’s quarter of $647.5 million. Propane and other gas liquids sales accounted for $559 million of the total revenues, while other revenues contributed $28.3 million. Although revenues saw a decline, the company’s cost of sales remained relatively stable.
Cost of Sales
The cost of sales for propane and other gas liquids sales was $291.8 million, representing a decrease from the previous year’s quarter figure of $363 million. Similarly, the cost of sales for other products was $3.7 million, up slightly from $3.2 million in the previous year’s quarter. The decrease in the cost of sales for propane and other gas liquids sales can be attributed to better cost management and operational efficiencies.
Operating Expenses
Operating expenses for the quarter amounted to $149.3 million, with personnel, vehicle, plant, and other expenses accounting for the majority of the expenditures. On a positive note, operating expenses remained relatively stable compared to the same period last year.
Depreciation and Amortization Expenses
Depreciation and amortization expenses for the quarter totaled $23.8 million, slightly higher than the previous year’s figure of $23.1 million. This increase can be attributed to the ongoing investments in property, plant, and equipment to support the company’s operations.
Operating Income
Despite the challenging market conditions, Ferrellgas Partners L.P. managed to maintain a strong operating income of $96.8 million for the quarter. This demonstrates the company’s ability to effectively manage costs and generate profitability.
Interest Expense and Other Income
Interest expense for the quarter amounted to $24.3 million, while other income contributed $0.9 million. The company’s earnings before income taxes reached $73.3 million, reflecting a slight increase compared to the previous year’s quarter.
Net Earnings
Net earnings for the quarter were $72.4 million, an increase from the previous year’s figure of $67.6 million. This positive result can be attributed to the company’s diligent cost management efforts. However, net earnings allocated to preferred units amounted to $15.6 million.
Balance Sheet
The company’s balance sheet reflects a total deficit of $862.1 million, with the majority being attributed to limited partner unitholders. The company’s total assets stood at $1.6 billion, with current assets amounting to $444.9 million.
In conclusion
Ferrellgas Partners L.P. has reported positive financial results for the first quarter of 2023. The company’s ability to effectively manage costs, generate profitability, and maintain a strong balance sheet showcases its resilience in a challenging market environment. With a focus on operational efficiencies and strategic investments, Ferrellgas Partners L.P. is well-positioned for future growth and continued success in the propane and gas liquids industry.
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