World Point Terminals' results

“Despite these challenges, we did experience measured, incremental financial growth fuelled by the acquisition of the Salisbury terminal late in 2015 as well as organic growth projects at several of our terminals. In addition to the previously announced construction of 178 000 bbls of storage capacity at the North Little Rock terminal and two new rail spurs at the Chickasaw terminal, we have completed substantial construction at the Mobile terminals, including the addition of 99 000 bbls of storage capacity at the Blakeley Island terminal that was placed in service in early 2017.”

A summary of the financial results for the year ended 31 December 2016 compared to the year ended 31 December 2015, includes:

• Revenues for the year ended 31 December 2016 increased by US$3.5 million, or 4%, compared to the year ended 31 December 2015.
• Base storage services fees increased by US$4.2 million, or 5%, from the year ended 31 December 2015, 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 volume contracted to Apex at the Glenmont terminal, and the addition of the Salisbury terminal in the 4Q15, partially offset by reduced base storage fees at the Baton Rouge and St. Louis terminals.
• Excess storage fees increased less than US$0.1 million, or 6%, from the year ended 31 December 2015.
• Ancillary and additive services fees decreased by $0.7 million, or 5%, from the year ended 31 December 2015, primarily as a result of reduced polymer processing activity at the Granite City terminal and reduced barge loading fees at the Newark terminal.
• Operating expenses for the year ended 31 December 2016 increased by US$0.9 million, or 3%, compared to the year ended 31 December 2015. This increase was primarily attributable to a (i) US$0.4 million increase in utility costs due to an increase in the cost of natural gas at the Galveston terminal, (ii) US$0.4 million increase in other costs including US$0.4 million in sales and use tax assessments related to construction and repair work at the Blakeley Island and Chickasaw terminals and a US$0.1 million increase in insurance deductible paid at the Newark terminal, offset by a US$0.1 million decrease in throughput fees paid at the Baltimore and Granite City terminals, and (iii) US$0.4 million increase in repairs and maintenance due to periodic tank cleanings and repairs, offset by a US$0.3 million decrease in insurance expense.
• Selling, general and administrative expenses for the year ended 31 December 2016 increased by US$0.6 million, or 9%, compared to the year ended 31 December 2015. This increase was primarily attributable to a (i) US$0.5 million increase in personnel expenses due to year-end employee bonuses, (ii) US$0.2 million increase in audit and tax preparation expenses, (iii) US$0.2 million increase in directors’ fees, and (iv) US$0.1 million increase in utility and other office expenses, offset by a US$0.2 million decrease in unit-based compensation due to the vesting of units granted in 2013 and a US$0.2 million decrease in insurance and legal expenses.
• Depreciation and amortisation expense for the year ended 31 December 2016 decreased US$1.8 million, or 7%, compared to the year ended 31 December 2015. This decrease is primarily due to terminal assets that became fully depreciated in December of 2015 and January of 2016 at the Baltimore and Newark terminals.
• Income from joint venture for the year ended 31 December 2016 decreased less than US$0.1 million, or 3% compared to the year ended 31 December 2015 resulting from the partnership’s investment in the Cenex joint venture.
• Interest expense for the year ended 31 December 2016 increased slightly compared to the year ended 31 December 2015 due to one additional day of commitment fee expense caused by the leap year.
• Interest and dividend income for the year ended 31 December 2016 decreased US$0.1 million compared to the year ended 31 December 2015. This decrease was attributable to lower amounts of short-term investments held during 2016.
• Gain (loss) on investments for the year ended 31 December 2016 decreased US$0.1 million compared to the year ended 31 December 2015. The decrease was primarily attributable to a US$0.1 million decrease in mark-to-market gain on investments.
• Income tax expense for the year ended 31 December 2016 decreased slightly compared to the year ended 31 December 2015.
• Net income for the year ended 31 December 2016 increased by US$3.4 million, or 10%, compared to the year ended 31 December 2015.
• Adjusted EBITDA, as defined by the partnership, increased US$1.6 million for the year ended 31 December 2016 compared with the year ended 31 December 2015.

Read the article online at: https://www.tanksterminals.com/storage-tanks/15032017/world-point-terminals-results/