March 12, 2014 [OPIS] - TransMontaigne said on Tuesday that it is continuing to look for new tenants to pick up expiring terminaling and storage contracts held by Morgan Stanley in Florida and Mississippi.
Morgan Stanley’s contract at Port Manatee, Fla., and Cape Canaveral terminals will end on May 31, 2014, and its contract at Collins/Purvis terminal in Mississippi will expire on Dec. 31, 2015.
On Feb. 12, 2014, TransMontaigne entered into a two-year terminaling services agreement with Chemoil Corporation for all of the bunker fuel storage capacity at its Port Everglades North, Fla., and Fisher Island, Fla., terminals, which is approximately 1.35 million barrels of aggregate tank capacity.
The agreement provides Chemoil Corporation the option to extend for an additional three years.
The agreement will replace Morgan Stanley Capital Group as the bunker fuel customer at these two terminals effective June 1, 2014.
“We expect that the new agreement will generate slightly less revenue related to the bunker fuel tanks at Fisher Island and Port Everglades than the Morgan Stanley agreement generates with respect to those tanks,” TransMontaigne said.
The new agreement with Chemoil Corporation did not involve our Florida bunker fuel tanks located at TransMontaigne’s Port Manatee, Fla., or Cape Canaveral, Fla., terminals, which remain under contract with Morgan Stanley Capital Group until May 31, 2014.
“We are currently in the process of identifying other parties to re-contract this capacity, however, at this time we are unsure if we will be successful in our re-contracting efforts,” TransMontaigne said.
On Dec. 20, 2013, Morgan Stanley Capital Group provided TransMontaigne notice that it will terminate its portion of the Southeast terminaling services agreement with respect to its Collins/Purvis terminal on Dec. 31, 2015.
TransMontaigne’s firmly committed quarterly revenues under the Southeast terminaling services agreement with respect to the Collins/Purvis terminal are approximately $2.3 million.
“We are currently in the process of identifying other parties to re-contract this capacity, and we believe there is adequate demand for the use of the Collins/Purvis terminal tanks,” TransMontaigne said.
TransMontaigne’s fourth quarter 2013 net earnings were $9.0 million compared to $6.9 million, and net earnings per limited partner unit-basic were $0.45 per unit compared to $0.39 per unit due principally to the changes in quarterly operating income.
Annual net earnings were $34.7 million compared to $38.6 million, and net earnings per limited partner unit-basic were $1.90 per unit compared to $2.31 per unit due principally to the changes in annual operating income.
