TULSA, Okla. (AP) -- Petroleum pipeline and storage company SemGroup Corp. on Wednesday reported a first-quarter loss, as revenue fell sharply after the company sold off a unit late last year.
Semgroup reaffirmed its full-year guidance and said it is on track to expand its crude oil operations. Shares rose 5 percent in afternoon trading.
First-quarter earnings were reduced by the sale of the SemStream propane unit to NGL Energy Partners LP in November. SemGroup said the sale was part of a long-term strategy to switch to more of a fee-based business model.
CEO Norm Szydlowski said the company is seeing strong demand in its crude oil segment, with transportation volume doubling from last year. SemGroup also completed a 1.95 million barrel storage expansion.
"We are making excellent progress on implementing our growth plans in the crude and gas segments, and are well positioned to meet the growing demand for storage, transportation and processing assets in our key growth areas in the mid-continent U.S.," Szydlowski said in a statement.
Revenue fell to $317.7 million from $407 million in the same period a year ago.
The company reported a net loss in the quarter of $1.4 million, or 3 cents per share, compared to net income of $32,000, or break-even per share, in the prior-year period.
SemGroup stuck with its full-year profit guidance of $125 million to $135 million.
SemGroup shares rose $1.39, or 4.6 percent, to $31.34. The stock has traded between $16.55 and $32 over the last 52 weeks.