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STAMFORD, Conn., Feb. 5, 2014 (GLOBE NEWSWIRE) -- Star Gas Partners, L.P. (the "Partnership" or "Star") (NYSE:SGU), a home energy distributor and services provider specializing in heating oil, today announced financial results for its fiscal 2014 first quarter, the three-month period ended December 31, 2013.
For the fiscal 2014 first quarter Star reported a slight increase in total revenue to $520.6 million, compared with revenue of $516.5 million in the prior-year period, as an increase in home heating oil and propane volume was somewhat reduced by lower home heating oil and propane selling prices, lower sales of other petroleum products, and a decrease in installation and service revenue. During the three months ended December 31, 2012 (the prior-year period), sales of other petroleum products, primarily motor fuels, and service and installation sales were favorably impacted by an increase in demand for these products resulting from the storm known as "Sandy."
Home heating oil and propane volume for the fiscal 2014 first quarter increased by 6.6 million gallons, or 6.8 percent, to 103.7 million gallons, as the impact of colder temperatures, the additional volume provided by acquisitions, and a return to more normal consumption patterns for customers impacted by Sandy during the prior year's comparable period more than offset the impact of net customer attrition and other factors affecting volume. Temperatures in Star's geographic areas of operation for the fiscal 2014 first quarter were 5.5 percent colder than during the fiscal 2013 first quarter but 1.9 percent warmer than normal, as reported by the National Oceanic and Atmospheric Administration.
During the fiscal 2014 first quarter, net income rose to $19.3 million, an increase of $9.5 million, due largely to a favorable change in the fair value of derivative instruments of $13.4 million.
Adjusted EBITDA increased to $35.8 million, up $4.9 million, as the impact of an increase in home heating oil and propane volume and higher home heating oil and propane per gallon margins more than offset the decline in net service profitability and lower gross profit from other petroleum products. During the three months ended December 31, 2012, the Partnership's home heating oil and propane volume was negatively impacted by Sandy, while net service and installation gross profit and gross profit from sales of other petroleum products was positively impacted.