Star Gas Partners L.P., the nation”™s largest retail distributor of home heating oil, weathered continued leaks in its customer base to post a $38 million profit for its 2007 fiscal year.
Under the Petro brand, Star Gas sells heating oil in the Northeast and Mid-Atlantic regions.
In its previous fiscal year ending Sept. 30, 2006, the Stamford company had a $54 million loss, and in fiscal 2005 it lost $173 million.
Despite average temperatures dropping 3 percent in the fiscal year compared with the previous fiscal year, Star Gas saw revenue decline 2 percent to $1.27 billion, citing attrition in its customer base as homeowners shop around for the lowest prices.
During the fiscal year, Star Gas spent $26 million to acquire seven heating oil companies with 19,400 customers, offsetting some of its customer attrition. The deals added 200 employees to Star Gas, giving it more than 2,800 total as of September; the company typically hires up to 300 additional people on a seasonal basis during the winter.
Star Gas stock (NYSE: SGU) appreciated 90 percent to close the fiscal year at $4.54 per share on Sept. 30, and since then has dropped back below $4.
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