November 16, 2015 [OPIS] - World Point Terminals LP said that its net income in the third quarter decreased $1.3 million, or 16%, from a year ago to $6.987 million.
Adjusted EBITDA, as defined by the partnership, decreased $0.2 million to $14.379 million.
World Point Terminals owns, operates, develops and acquires terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil. The St. Louis-headquartered partnership owns 15.5 million bbl of storage capacity at 18 terminals in the East Coast, Gulf Coast and Midwest.
World Point Terminals reported growth in revenue and adjusted EBITDA in the first nine months of 2015 compared to the first nine months of 2014, due primarily to revenue from the Greensboro, Chickasaw and Blakeley Island terminals.
In addition, during the first quarter of 2015, World Point had 580,000 bbl of tankage contracted under spot (month-to-month) contracts, that replaced revenues from contracts that were not renewed at the end of 2014.
As of Sept. 30, World Point has approximately 739,000 bbl of unutilized storage at its 2-million-bbl-capacity Galveston terminal. The terminal, near Houston, stores vacuum gas oil, vacuum tower bottoms, bunker fuel and No. 6 oil.
“There is no certainty as to when we will be able to place those tanks under contract. In addition, there is no certainty that contracts expiring in 2015 will be extended or that any extension or recontracting will result in the same level of revenue to the Partnership,” the company said.
“Despite the likelihood that we may experience some near-term under-utilization of our assets, we maintain our belief that the long-term outlook for our industry remains strong,” it added.
