The following is a summary of the Star Group, L.P. (SGU) Q2 2024 Earnings Call Transcript:
Financial Performance:
Star Group saw a decline in home heating oil and propane volume by 4 million gallons, or around 3%, in Q2 2024 due to factors like customer attrition.
Product gross profit grew by $3 million, to $206 million, despite the volume decline. Net income increased by $6 million from the prior year to $68 million.
Adjusted EBITDA fell by $6 million to $96 million due to decreased volume and diminishing weather hedge benefit.
For the first half of 2024, there was a net income rise of $6 million to $81 million, while adjusted EBITDA fell by $6 million.
Business Progress:
Star Group has completed two strategic acquisitions in Long Island, making a total of four for the fiscal year.
Improvement was noted in service and equipment installation profitability due to targeted efforts.
There are plans for significant human capital and business development investments in the upcoming summer.
Additionally, $15 million has been committed to weather hedges for 2025 to control the impacts of warmer temperatures.
More details: Star Group LP IR
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