November 9, 2016 [OPIS] - VTTI Energy Partners reported on Monday lower year-on-year income for the third quarter, but the partnership's financial results were stronger than the second quarter.
Rob Nijst, CEO of VTTI, said that “although we have seen an increase in commodity price volatility in this quarter, the international storage market remains supportive of international storage demand. We are pleased to announce a number of significant new expansion projects this quarter, primarily at the VTTI B.V. level, and we intend to continue this growth trend going forwards.”
“VTTI continues to perform consistently with another strong financial and operating performance this quarter. Our coverage ratio was negatively impacted by the timing of the recent dropdown but our distribution coverage target
remains 1.10x and we expect to meet that in the fourth quarter of 2016,” he added.
VTTI Energy Partners is a limited partnership, formed to own, operate, develop and acquire refined petroleum product and crude oil terminaling and related energy infrastructure assets on a global scale. The partnership’s assets include interests in a portfolio of six terminals with a combined total storage capacity of 35.7 million bbl.
Total operating income for the third quarter ended Sept. 30, 2016 was $30.9 million, while net income was $21.0 million compared to total operating income of $39.7 million and net income of $27.4 million for the third quarter of 2015, which benefited from a non-recurring revenue item of approximately $9 million.
Adjusted EBITDA for the third quarter was $48.6 million, compared to $57.4 million for the third quarter of 2015. The partnership generated $13.9 million of distributable cash flow for the third quarter, compared to distributable cash flow of $17.8 million for the third quarter of 2015.
