Star Gas Partners posts fiscal 4Q profit

AP News
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Posted: Dec 09, 2009 5:55 PM

Home heating oil distributor Star Gas Partners LP said Wednesday it posted a fiscal fourth-quarter profit despite lower heating oil prices, due to hefty one-time gains.

Its shares shot up more than 4 percent in aftermarket trading.

The company earned $32.2 million, or 36 cents per unit, compared with a loss of $91.5 million, or $1.21 per unit, a year earlier.

Earnings include a $70.1 million gain related to the fair value of derivatives and a net income tax benefit of $61.5 million.

Revenue fell to $115.8 million from $165.8 million in the same period last year.

"Our fiscal fourth quarter results reflect a decline in service and installation revenues resulting from the current economic climate," Chief Executive Officer Daniel P. Donovan said in a statement. "However, we are hopeful that general economic conditions, which impact new equipment installations and home sales, are stabilizing."

For the full fiscal year, the partnership earned $131 million, or $1.43 per unit, compared with a loss of $13.4 million, or 18 cents per unit in the prior-year period.

Revenue for the year fell to $1.21 billion, from $1.54 billion in 2008.

Shares finished the regular session up 6 cents at $3.86.