March 30, 2015 [OPIS] - World Point Terminals reported late on Thursday that net income for 2014 increased by $0.2 million from 2013 to $32.518 million.
Adjusted EBITDA, as defined by the partnership, increased $3.4 million in 2014 to $56.858 million.
World Point Terminals LP is a master limited partnership that owns, operates, develops and acquires terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil.
The partnership’s storage terminals are strategically located in the U.S. East Coast, Gulf Coast and Midwest. The partnership is headquartered in St. Louis. World Point said that during 2014, some customers did not renew their contracts.
As a result, approximately 580,000 bbl of tankage was placed under “spot” (month-to-month) contracts. There is no certainty that it will be able to keep those tanks under contract throughout 2015.
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.
On Jan. 1, 2015, the partnership completed the acquisition of a terminal facility in Greensboro, N.C., which has a total shell capacity of 684,000 bbl.
The partnership entered into a contribution agreement with a subsidiary of Apex Oil Co., whereby the partnership issued 1,550,000 common units to Apex in exchange for the terminal.
Based on the closing price of the partnership’s common units on Dec. 31, 2014, the value of the units issued represented approximately $31.2 million in total consideration. This is slightly higher than the $29.4 million estimate offered by World Point in December 2014.
Revenues in 2014 rose by $6.3 million, or 8% to $90.163 million. Operating expenses increased by $1.8 million, or 6%, mainly due to the acquisition of Chickasaw and Blakeley terminals.
