Suburban Propane Reports $74.2M Net Income for Fiscal 2024

By Tamara Parker • Thursday, November 14 10:30 • Permanent Link

Suburban Propane Partners, L.P. has reported its earnings for the full year and fourth quarter ending September 28, 2024. The company's net income for fiscal 2024 was $74.2 million, compared to $123.8 million in the previous year. Adjusted EBITDA was $250.0 million for fiscal 2024, down from $275.0 million in the prior year.

Retail propane gallons sold in fiscal 2024 decreased 4.6% to 378.3 million gallons, primarily due to unseasonably warm temperatures. Average propane prices remained flat, but total gross margins decreased by 4.1% to $805.0 million, primarily due to lower propane volumes sold. Excluding the impact of unrealized mark-to-market adjustments, propane unit margins increased by 1.3% compared to the prior year.

Combined operating and general administrative expenses decreased by 0.5% to $566.8 million. The partnership also made strategic investments, including the acquisition of three retail propane businesses for $14.3 million and additional investments in renewable natural gas (RNG) production facilities.

In the fourth quarter of fiscal 2024, the partnership reported a net loss of $44.6 million, compared to a net loss of $20.9 million in the prior year. Adjusted EBITDA for the fourth quarter was $0.8 million, down from $3.0 million in the fourth quarter of fiscal 2023. Retail propane gallons sold in the fourth quarter of fiscal 2024 decreased by 8.1% to 59.7 million gallons.

The company's board declared a quarterly distribution of $0.325 per common unit for the three months ended September 28, 2024, equating to $1.30 per common unit on an annualized basis.

Suburban Propane Partners, L.P. is a publicly traded master limited partnership listed on the New York Stock Exchange, serving approximately 1 million customers across 42 states. The company is involved in the distribution of propane, renewable propane, RNG, fuel oil, natural gas, and electricity, as well as low carbon fuel alternatives. The market has reacted to these announcements by moving the company's shares -5.9% to a price of $17.66. For the full picture, make sure to review Suburban Propane's 8-K report.

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