Inergy, L.P. (NRGY) reported Tuesday lower net income for the first quarter, hurt by a decline in revenues as well as a wider loss on disposal of excess property, plant and equipment, not withstanding a significant decline in expenses. Meanwhile, Inergy Holdings L.P. (NRGP) said that its first-quarter profit increased from last year as lower expenses offset the drop in revenues.
The Kansas City, Missouri-based company's total limited partners' interest in net income declined to $29.4 million from $45.9 million in the previous year. On a per limited partner unit basis, net income fell to $0.49 from $0.90 per limited partner unit, with the additional impact of the increase in number of limited partners units outstanding.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.63 per limited partner unit for the quarter. Analysts estimates typically exclude special items.
The results of the latest quarter included loss on disposal of excess property, plant and equipment of $2.0 million, compared to $0.7 million in the past year. Gain from the derivative contracts associated with retail propane fixed price sales rose to $2.0 million from $0.4 million.
Excluding these items, net income attributable to controlling partners for the quarter was $46.0 million or $0.49 per limited partner unit, compared to $58.3 million or $0.92 per limited partner unit in the same quarter of last year.
Revenues for the period dropped to $501 million from $534 million in the first quarter of the prior fiscal year. Five analysts were expecting revenue of $510.13 million in the first quarter.
Revenue from Propane sales came down to $372.3 million from $409.2 million, while other revenues increased to $129.4 million from $124.0 million.
Gross profit for the three month period edged up to $175.2 million from $174.3 million in the year-earlier quarter, as cost of propane sold declined sharply to $252.3 million from $283.2 million.
Operating and administrative expenses for the quarter decreased to $68.5 million from $72.8 million in the same period of fiscal 2009.
Quantity of retail propane sales decreased slightly to 102.5 million gallons from 104.4 million gallons in the corresponding quarter of fiscal 2008.
Meanwhile, Inergy Holdings L.P. (NRGP) posted a first-quarter net income applicable to limited partners' units of $16.5 million or $0.80 per unit, compared to $14.4 million or $0.71 per unit in the year ago quarter. Revenues for the quarter were $231.5 million, a decrease from $340.9 million in the prior-year quarter.
During the quarter, the company's board increased Inergy's quarterly cash distribution to $0.685 per limited partner unit for the quarter ended December 31, 2009, representing an about 6% increase over the distribution for the same quarter of the prior year. The distribution will be paid on February 12, 2010.
NRGY is currently trading at 36.40, up $0.40 or 1.11%, while NRGP is trading at $68.99, up $1.90 or 2.83% on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.