April 28, 2016 [OPIS] - Martin Midstream Partners, a midstream company focusing on the U.S. Gulf Coast, said Wednesday that it performed well in natural gas services, terminaling and storage and sulfur services in the first quarter.
However, Martin saw lower throughput at its Corpus Christi, Texas, crude terminal, weaker inland marine market and reduced cash flow from its West Texas LPG joint venture.
Martin is involved in terminaling, storage and packaging services for petroleum products and byproducts; natural gas services, including liquids transportation and distribution services and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marine transportation services for petroleum products and byproducts.
“Across our businesses, within the Natural Gas Services segment, our Cardinal Gas Storage division exceeded forecast based on higher than expected interruptible services revenue during the quarter,” said CEO Ruben Martin.
Its terminaling and storage segment performed better than anticipated due to high utilization and strong throughput at the legacy specialty terminals combined with lower operating costs, he said.
On the pure sulfur side of Martin’s sulfur services business, the company also exceeded forecast based on reduced costs. Its fertilizer business performed well late in the quarter, and the company expects continued strength as some fertilizer application has been delayed into the second quarter of the year.
“While we are facing challenges in several areas, including throughput reductions at our Corpus Christi Crude Terminal, a weaker than anticipated inland marine market and reduced cash flow from our West Texas LPG joint
venture, we will again rely on our diverse cash flow model and expect that continued high levels of refinery utilization will serve the partnership well for the remainder of 2016,” Martin said.
The partnership’s adjusted EBITDA from continuing operations for the first quarter of 2016 was $49.3 million compared to adjusted EBITDA from continuing operations for the first quarter of 2015 of $50.4 million, a decrease of 2%.
Net income for the first quarter of 2016 was $15.9 million, or $0.33 per limited partner unit. Net income for the first quarter of 2015 was $17.2 million, or $0.37 per limited partner unit.
On Feb, 12, 2015, the partnership exited the natural gas liquids floating storage and transloading businesses as a result of the sale of its six liquefied petroleum gas pressure barges, collectively referred to as the “Floating Storage Assets,” for $41.3 million. The partnership recorded a gain on the disposition of $1.5 million.
