Sunoco LP (NYSE: SUN) entered 2017 on shaky ground. Due to lower fuel margins in its retail business as well as smaller contributions from merchandise sales, its earnings and cash flow declined. Because of that, the company distributed more to investors than it pulled in last year, causing its coverage ratio to fall below 1.0 times. Meanwhile, after an expansion binge in prior years caused debt to rise, its leverage ratio ballooned to an unsightly 6.5 times net debt to adjusted EBITDA when earnings fell.
Published in TZ Latest News 27 June, 2017 by The TZ Newswire Staff
Sunoco LP’s Most Brilliant Move in 2017 So Far
Published in TZ Latest News 27 June, 2017 by The TZ Newswire Staff
Sunoco LP’s Most Brilliant Move in 2017 So Far
Sunoco LP (NYSE: SUN) entered 2017 on shaky ground. Due to lower fuel margins in its retail business as well as smaller contributions from merchandise sales, its earnings and cash flow declined. Because of that, the company distributed more to investors than it pulled in last year, causing its coverage ratio to fall below 1.0 times. Meanwhile, after an expansion binge in prior years caused debt to rise, its leverage ratio ballooned to an unsightly 6.5 times net debt to adjusted EBITDA when earnings fell.