World Point Terminals Raising Spot Tank Utilization; Q3 Net Income Up
11.11.2016 - NEWS

November 11, 2016 [OPIS] - World Point Terminals said that it has generated increased revenues, net income and adjusted EBITDA in the third quarter of 2016 as compared the third quarter of 2015.


This quarterly increases continued the recovery from the period of reduced utilization that occurred during the middle of 2015 when some customers did not renew their contracts, resulting in approximately 580,000 bbl of tankage being placed under “spot” (month-to-month) contracts during the first quarter of 2015, and 739,000 bbl of unutilized storage as of Sept. 30, 2015, at the Galveston terminal, the partnership said.

During the second quarter of 2016, some spot contracts were terminated. As of Sept. 30, 2016, 159,000 bbl of tankage remain under spot contracts, and 470,000 bbl of tankage are unutilized at the Galveston terminal.

There is no certainty that World Point Terminals will be able to keep the remaining tanks under contract throughout 2016. In addition, there is no certainty that contracts expiring in 2016 will be extended or that any extension or recontracting will result in the same level of revenue to the partnership.

The partnership recently completed the construction of two tanks totaling 178,000 bbl of storage capacity at the North Little Rock terminal. The tanks were placed in service effective Aug. 14, 2016.

World Point Terminals is a master limited partnership that owns, operates, develops and acquires terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil. The partnership currently owns 15.6 million bbl of storage capacity at 18 terminals in the East Coast, Gulf Coast and Midwest regions of the United States. The partnership is headquartered in St. Louis, Miss.

Net income for the three months ended Sept. 30, 2016 increased $1.8 million, or 26%, compared to the three months ended Sept. 30, 2015. Net income was $0.25 per unit for the three months ended Sept. 30, 2016.

Average daily terminal throughput for the three months ended Sept. 30, 2016 increased 17,000 bbl, or 10%, compared to the three months ended Sept. 30, 2015 primarily as a result of increased throughput at the Jacksonville and Galveston terminals.

Adjusted EBITDA, as defined by the partnership, increased $1.3 million for the three months ended Sept. 30, 2016 compared with the three months ended Sept. 30, 2015.

Base storage services fees increased $2.6 million or 4%, primarily as a result of additional tanks at the Blakeley Island terminal that were placed under contract during the first half of 2016, new customers at the Galveston terminal, increased terminaling activity at the Glenmont terminal, and the addition of the Salisbury terminal in the fourth quarter of 2015, partially offset by reduced base storage fees at the St. Louis terminal.

Ancillary and additive services increased $0.3 million, or 3%, compared to the nine months ended Sept. 30, 2015, primarily as a result of increased railcar loading activity at the Chickasaw terminal, increased heating activity at the Baton Rouge terminal, increased ethanol blending activity at the Jacksonville terminal and profit-sharing revenue earned at the St. Louis terminal, partially offset by reduced polymer processing activity at the Granite City terminal caused by a disruption in the Keystone Pipeline, reduced barge loading fees at the Newark terminal and reduced heating fees at the Pine Bluff terminal during 2016.

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