Ferrellgas Partners Sputters in Its Fiscal Fourth Quarter

Ferrellgas Partners L.G. (NYSE: FGP) has reported a net loss of $0.45 per unit on revenue of $341.8 million for the fiscal fourth-quarter 2012. In the same period a year ago, the American propane supplier reported a net loss of $0.53 per unit on revenue of $449.6 million. Fourth-quarter results compare to the Thomson Reuters consensus estimates for a net loss of $0.43 per unit and $399.9 million in revenue.

The press release highlighted that adjusted EBITDA rose 78% to a record $18.1 million from $10.1 million in the year-earlier quarter and said that significant expense savings drove performance.

For the full 2012 fiscal year, Ferrellgas Partners reported a per-unit loss of $0.14 compared with a net loss of $0.60 in 2011. Full-year revenues totaled $2.34 billion, compared with $2.40 billion a year ago. The consensus estimate called for a full-year net loss of $0.17 per unit on revenue of $2.42 billion.

The president and CEO said:

Our fourth-quarter results highlight our ongoing efforts to both drive profitable growth and manage expenses in this highly competitive operating environment. We remain committed to driving significant cost savings throughout our operations providing both the opportunity to be more competitive for new business and provide immediate financial returns for investors.

The partnership did not offer specific guidance, but the CEO also said:

We expect a continuation of our organic gallon growth. In addition, the opportunities for acquisitions seem to be heating up after a lull.

The consensus estimate for the first fiscal quarter of 2013 calls for a net loss of $0.40 per unit on revenues of $426.1 million. For the full 2013 fiscal year, the estimate is for earnings of $0.33 per unit on revenues of $2.2 billion.

Ferrellgas Partners’s shares are inactive in premarket trading, having closed Friday at $19.40. The 52-week range is $10.20 to $23.02. Thomson Reuters had a consensus analyst price target of $13.30 before today’s report.