Pressure on Fuel Margins Nips Into Petro Profits
February 25, 2000
Petro Stopping Centers L.P. reported income (before extraordinary items and an accounting change) of $4.1 million in 1999, down from $5.7 million in 1998. Total revenue rose from $653.4 million in 1998 to $719.9 million in 1999.
"We are pleased with our results for the year considering the continued rise in fuel costs and related fuel margin pressure," said chairman and ceo Jack Cardwell.
Cardwell added that the company is expecially pleased with the continued growth in non-fuel areas. Petro's non-fuel revenues were $172.2 million in 1997, $189.4 million in 1998, and $199.3 million last year. Fuel revenues, including taxes, were $513.6 million in 1997, $464.0 million in 1998, and $520.7 million in 1999.
Petro, based in El Paso, TX, completed a recapitalization in mid 1999. As part of that transaction, affiliates of Volvo Trucks North America and Mobil Oil Corp. made equity investments in the company.