The year-over-year comparisons, though were slightly misleading because South Riding Point’s storage revenues had increased as a result of 1.5 million barrels of new capacity coming on line in the 2008 third and fourth quarters. The full effects from this would not have been felt last year.
World Point Terminals, though, said marine activity had increased at South Riding Point, generating extra port fees for the Bahamian facility.
For the 2009 first half, South Riding Point’s revenues grew by 92 per cent or $8.061 million as a result of higher storage and marine fees. Storage revenues grew as a result of two new oil storage tanks, with a combined 1.5 million barrels of extra capacity, coming on line during the 2008 third and fourth quarters.
Elsewhere, World Point Terminals pointed to a 2 per cent increase in operating expenses for the first nine months of 2009, attributing this to a $545,000 business licence fee increase imposed upon South Riding Point by the Bahamian government.
“As previously disclosed, in 2008, South Riding Point was contacted by representatives of the Bahamian government regarding the non-payment of a local revenue-based tax spanning previous years’ revenue,” a World Point Terminals report said.
“As a result, South Riding Point incurred $545,000 related to the business licence fees imposed by the Bahamian government.”
The Statoil deal does not completely end World Point Terminals’ involvement in the Bahamas, as it is still engaged in arbitration over repairs to South Riding Point’s sea jetty resulting from damage inflicted in the 2004 hurricane season. The company warned that legal fees relating to the arbitration would impact income from continuing operations throughout 2009.