Sprague Cites Increased Competitive Intensity In Natural Gas Business In Reporting Earnings
Sprague Resources LP today reported its financial results for the fourth quarter and twelve months ended December 31, 2018.
Sprague reported results from its natural gas segment as follows:
• Natural Gas segment volumes decreased 1% to 17.1 Bcf in the fourth quarter of 2018, compared to 17.2 Bcf in the fourth quarter of 2017.
• Natural Gas adjusted gross margin decreased $8.8 million, or 43%, to $11.9 million for the fourth quarter of 2018, compared to $20.7 million for the fourth quarter of 2017.
• Volumes in the Natural Gas segment decreased 1.5 Bcf, to 60.4 Bcf in 2018 compared to 2017.
• Natural Gas adjusted gross margin decreased 11% to $57.9 million in 2018, compared to $65.1 million in 2017.
"Natural Gas adjusted gross margin declined by 43% during the fourth quarter and 11% for the year primarily due to fewer pipeline capacity optimization opportunities and increased competitive intensity in some of our core markets," the company said