“Most oil and propane dealers experienced a heating season that ended up relatively ‘normal,’ despite stretches of warmer weather followed by late season cold,” said Jeff Foley, CPA, who heads up the Energy Practice Group at Gray, Gray & Gray. “We are still seeing an active M&A market, as the retail energy industry continues to consolidate. This is reflected in the growing number of dealers expressing an interest in acquiring another company, which has climbed steadily over the past four years.”
Some of the highlights of Gray, Gray & Gray’s 2017 Energy Industry Survey results include:
- After last year’s exceptionally warm winter, this season saw both oil gallons and customer counts up by approximately 15%, but with narrower margins.
- Conversely, propane gallons delivered and customer counts were down slightly, but margins were higher.
- The majority of respondents (39%) report “customer referrals” as their largest source of new customers, while many respondents reported gaining new customers as the result of poor service provided by competitors.
- The number of dealers interested in acquiring another company was up slightly (37%), while those interested in retirement was down by almost half (12%).
Complete 2017 Energy Industry Survey results, including a breakdown by region and 10 year trend analysis, are available on Gray, Gray & Gray’s website at www.gggcpas.com, or by calling (781) 407-0300.
Gray, Gray & Gray, LLP is the country’s leading oilheat, propane, and energy industry accounting and business advisory firm. Gray, Gray & Gray’s offices are located at 150 Royall Street, Suite 102, Canton, MA.
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