May 11, 2016 [OPIS] - World Point Terminals said that its adjusted EBITDA, net income and daily throughput in the first quarter were almost unchanged from the corresponding period of 2015.
However, it generated increased revenues, net income and adjusted EBITDA in the first quarter of 2016 as compared to the fourth quarter of 2015.
This quarter-on-quarter increase 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 at the Galveston terminal.
As of March 31, 2016, 518,000 bbl of tankage remain under spot contracts at the Galveston terminal. There is no certainty that we will be able to keep those 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.
Net income for the three months ended March 31, 2016 decreased $0.1 million, or 1%, compared to the three months ended March 31, 2015.
Average daily terminal throughput for the three months ended March 31, 2016 decreased 45,000 bbl, or 23%, compared to the three months ended March 31, 2015 primarily as a result of decreased throughput at its Newark and Weirton terminals.
Adjusted EBITDA decreased $0.2 million for the three months ended March 31, 2016 compared with the three months ended March 31, 2015.
The partnership has recently completed the construction of two tanks totaling 178,000 bbl of storage capacity at the North Little Rock terminal and anticipates placing those tanks in service during the second quarter of 2016.
World Point owns a 130,000-bbl capacity terminal at North Little Rock, and it stores diesel, biodiesel and caustic, according to the company’s website.
OPIS notes that the capacity expansion at North Little Rock coincides with the expected first flow on Magellan’s new Fort Smith-Little Rock products pipeline later this year.
World Point 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 15.5 million bbl of storage capacity at 18 terminals in the East Coast, Gulf Coast and Midwest regions of the U.S. The partnership is headquartered in St. Louis, Mo.
