Susser Q1 Profit Rises, But Misses Estimates; Hikes Quarterly Dividend

(RTTNews) - Susser Petroleum Partners LP (SUSP) Wednesday reported a rise in earnings for the first quarter as an increase in gallons sold contributed to a growth in revenues. Earnings, however, fell short of analysts' estimates.

Susser Petroleum is engaged in wholesale distribution of motor fuels mainly in Texas, New Mexico, Oklahoma, and Louisiana.

The company also said its Board of Directors recommended an increase in quarterly distribution to $0.5021 per unit, payable on May 30 to unit-holders of record on May 20.

"The year-on-year growth was largely driven by the Gainesville Fuel and Sac-N-Pac/3W Warren Fuels acquisitions, and the growth in Stripes gallons supported by a robust Texas economy," Rocky Dewbre, CEO of Susser.

For the three months to March, net earnings increased to $10.13 million or $0.46 per share, from $8.23 million or $0.38 per share a year earlier.

On average, 8 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.47 for the quarter. Analysts' estimates typically exclude one-time items.

In the quarter, adjusted EBITDA rose to $15.67 million from $11.23 million a year ago.

First-quarter revenues grew to $1.216 billion from $1.090 billion in the same period last year, driven by an 18.1 percent rise in gallons sold. Analysts had expected revenues of $1.22 billion.