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AE NYSE AM· Adams Resources & Energy Inc
Earnings report Q3 2023

AE Reports Decrease in Revenue for the Latest Quarter

Segments of Revenue

In the latest quarter, AE reported total revenues of $760.6 million, a decrease of 10.7% compared to the same period last year. The company's revenue is divided into different segments, including Crude Oil Marketing, Transportation, Pipeline and Storage, and Logistics and Repurposing.

  • Crude Oil Marketing: AE generated $719.9 million in revenue from its crude oil marketing segment, representing a decrease of 11.5% compared to the previous year. Revenue from contracts with customers, including goods transferred at a point in time and services transferred over time, accounted for the majority of the segment's revenue.
  • Transportation: The transportation segment contributed $24.2 million in revenue, a decline of 18.8% compared to the same quarter last year. The revenue was primarily generated from services transferred over time.
  • Pipeline and Storage: AE reported minimal revenue of $59,000 from its pipeline and storage segment, representing a significant decrease compared to the previous year.
  • Logistics and Repurposing: The logistics and repurposing segment generated $16.4 million in revenue, showing a substantial increase of 89.2% compared to the same period last year.

Strengths

Despite the overall decrease in revenue, AE's logistics and repurposing segment experienced significant growth, contributing to the company's overall performance. The management comments that this increase in revenue can be attributed to higher demand for logistics services and successful repurposing initiatives.

Challenges

AE faced challenges in its crude oil marketing and transportation segments, which experienced declines in revenue. The decrease in revenue from the crude oil marketing segment can be attributed to lower revenues resulting from lower crude oil prices and volumes. The transportation segment also faced a decline in revenue due to lower services transferred over time.

Noteworthy

AE reported field level operating earnings of $3.9 million for the latest quarter, indicating a slight increase compared to the same period last year. This measure is unique to the company and is used to evaluate the profitability of its operations. Additionally, AE's Phoenix operations generated approximately $8.5 million in revenues during the quarter.

Summary

AE's latest quarter performance showed a decrease in revenue, primarily driven by declines in the crude oil marketing and transportation segments. However, the logistics and repurposing segment experienced significant growth, contributing to the company's overall performance. AE's field level operating earnings remained relatively stable, indicating the company's ability to maintain profitability. Moving forward, AE may need to address the challenges in its crude oil marketing and transportation segments to improve its revenue performance.

Source documents

Form 10-Q  filed on Nov 08, 2023
88 pages scanned

Reference data

Company financials Q3 revenue 761M
Analyst estimates Q3 EPS beat by 453.85%
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