Niska Gas Storage Partners LLC (NYSE:NKA) released numbers for the recent third quarter and earnings took a big hit. The total for the quarter ended up at $9.4 million which was far less than the same period in 2013. For the nine month period EBITDA came in at $48 million which also was less than half the company reported for the same period a year ago.
For the third quarter the company lost $259.6 million and in turn lost $307.4 million for the nine-month period. This equates to a loss per share of $6.85 for the quarter and $8.27 for the nine month period. Niska Gas Storage Partners LLC (NYSE:NKA) reported a large write-off as it lost a long-term contract with TransCanada valued at $26 million. TransCanada was the company’s largest volume customer. They also wrote-off the company’s goodwill adding another $245.6 million to the total.
Natural Gas Woes
The natural gas industry was under pressure as wholesale prices remained stagnant and unusually warm weather in certain regions caused low demand. This hit the company’s earnings hard. Winter came a little late and was not as dramatic as expected also contributing to low demand. Niska Gas Storage Partners LLC (NYSE:NKA) intends to review its internal costs and develop a strategy for maximizing lower revenue than expected. Until demand rises there are not many options for the company.
The losses resulted in the company also suspend its dividend distribution program. The board will reassess the financial solvency of the company later on and see if the program can be revived. Niska Gas Storage Partners LLC (NYSE:NKA) is a natural gas services provider that operates in the Canada, California and Oklahoma. They own three natural gas storage plants and they also contract for other storage opportunities. They are currently the largest owner of natural gas storage in North America.
The stock recently bounced off its lows and is making an effort to repair the technical damage the last selloff created. If it can take out resistance at $2.93 it might make an attempt to backfill thee gap at $9.