Wednesday, Genesis Energy LP (GEL), a crude oil and gas transporter, reported a higher profit in the first quarter, backed by declines in depreciation and amortization expenses as well as improved performance of business segments. Revenues for the quarter, however, witnessed a steep decline.
The Houston, Texas-based company reported net income attributable to the company for the first quarter of $5.29 million or $0.16 per share, up from $1.65 million or $0.03 per share in the year-ago quarter.
On average, four analysts polled by Thomson Reuters expected the company to earn $0.17 per share for the quarter. Analysts' estimates typically exclude special items.
The company attributed the higher net income to a $7.6 million increase in margin from the company's operating segments and a $1.4 million decline in depreciation and amortization, offset by increases in corporate general and administrative expenses, interest expense and income tax expense.
Revenues for the quarter decreased to $253.49 million from $486.19 million in the prior-year quarter. Three analysts had a revenue consensus of $373.71 million for the first quarter.
Cost of sales for the quarter decreased to $222.52 million from $459.09 million in the same quarter last year. General and administrative expenses totaled $8.75 million, compared to $8.52 million in the first quarter of 2008. Depreciation and amortization expense declined to $15.45 million from $16.79 million in the corresponding last year quarter.
For the first quarter of 2009, the company generated total available cash before reserves of $21.3 million, compared to $15.8 million in the first quarter of 2008, primarily due to improvements in segment margin, in large part resulting from acquisitions in 2008.
On May 15, the company is to pay a total quarterly distribution of $14.7 million, with $13.3 million to its unit holders or $0.3375 per unit and $1.4 million to its general partner including incentive distribution, attributable to financial and operational results for the first quarter of 2009. The distribution of $0.3375 per unit represented a 2.3% increase in the distribution, compared to the previous quarter and approximately 12.8% increase over the year earlier period
GEL is currently trading at $12.79, up $0.17 or 1.35% on a volume of 108,815 shares on the AMEX.
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