February 11, 2015 [OPIS] - VTTI Energy Partners said on Tuesday that its net income for the fourth quarter ended Dec. 31, 2014 fell to $11.4 million from $22 million a year ago.
This is a sharp reversal of the partnership’s bullish 73% year-on-year hike in net income for the third quarter of 2014 to $29.3 million.
Total operating income for the fourth quarter was $30.4 million versus $36.9 million a year ago.
In the fourth quarter of 2014, VTTI saw higher operating cost and expense of about $6 million than the corresponding period in 2013.
VTTI also incurred higher expenses from foreign currency losses. Net loss on foreign currency transactions in the fourth quarter was $10.4 million versus $0.4 million a year ago.
Also, income tax expenses rose by $2 million from a year ago to $9 million.
VTTI Energy Partners’s general partner is owned by Vitol and MSIC of Malaysia. It has a 35.5 million-bbl oil storage capacity worldwide, including Seaport Canaveral, Fla., Rotterdam, Antwerp, Amsterdam, Fujairah and Johor.
VTTI Energy Partners LP is a publicly traded master limited partnership formed in April 2014 by VTTI B.V. to own, operate, develop and acquire refined petroleum product and crude oil terminaling and related energy infrastructure assets on a global scale.
VTTI Energy Partners successfully completed an initial public offering at $21 per unit in August.
In connection with the IPO, VTTI acquired a 36% ownership interest in VTTI MLP B.V., which owns a portfolio of six terminals with approximately 400 tanks and 35 million bbl of refined petroleum product and crude oil storage capacity located in Europe, the Middle East, Asia and North America.
Adjusted EBITDA for the fourth quarter was $50.1 million and the partnership generated $12.7 million of distributable cash flow, exceeding the forecasts at the time of the IPO of $49.1 million and $11.7 million, respectively, VTTI said.
On Tuesday, VTTI’s share price on the New York Stock Exchange was at $23, with the 52-week range at $20.09-$27.58.
