“Ideally, energy retailers will compare the industry-wide results to those of their own company,” said Joe Ciccarello, CPA, MST, a partner who helps lead Gray, Gray & Gray’s Energy Practice Group. “Benchmarking your performance against industry averages is not simply an ‘interesting’ exercise, but can help an energy company to identify those areas in which it is doing well, and areas in which improvements might be made to help the company stand out from what is considered average,” added Marty Kirshner, CPA, MSA, a manager who heads up Gray, Gray & Gray’s Energy Practice Group.
What do this year’s results tell us about our industry? “It was a cold winter, filled with numerous operational challenges,” said Ciccarello. “But that also meant healthy margins and profits for many dealers, leading to a degree of optimism about the future. Stable prices have stabilized the ‘customer list’ – the biggest asset that most companies own and which third parties such as banks and investors value.”
Some of the highlights from the results of the 2018 Energy Industry Survey are:
- The lengthy spell of frigid weather in December and January led to challenges for dealers, including driver shortages (35%), supply shortages (28%), and trouble keeping up with will call customers (64%)
- Further evidence of the busy winter: the average company made 21,611 deliveries this season, with an average delivery of 160 gallons of oil
- 55% of respondents are considering acquiring a competitor, a sign of optimism and the result of strong revenues from the season just ended
Complete 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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