OREANDA-NEWS. Propane retailer Ferrellgas revised its estimated 2016 guidance lower following a 16pc year-over-year decline in propane sales the quarter ended 31 January.

"Despite some very recent life in crude pricing, the propane industry remains in a much less competitive pricing environment," said chief executive Stephen Wambold.

The Overland Park, Kansas-based distributor estimates its 2016 earnings before taxes will total $360-375mn, down from its previous guidance of $400-420mn.

Ferrellgas sold 250.24mn gallons (5.96mn bl) of propane during the second quarter, a 16pc decrease from a year earlier, due to mild weather.

Ferrellgas, which distributes propane in the midcontinent, and other retailers are facing narrower margins due to lower propane prices. Ferrellgas reported profit fell 33pc from year-ago levels, to $57.76mn, in its fiscal second quarter. Conway, Kansas, propane averaged 33.875?/USG for Ferrellgas' second fiscal quarter, a decrease of 43pc compared to the same period a year earlier.