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Researched by Industrial Info Resources (Sugar Land, Texas)--Global Partners LP (NYSE:GLP) (Waltham, Massachusetts), a leading midstream logistics and marketing company in the U.S. Northeast, reported solid operational improvement, albeit with higher costs, as key acquisitions expanded the company's rail distribution business, driving gains in the Wholesale segment. Product diversification in other segments also boosted volumes. Net income was reported to be $34.04 million for the quarter, a 49.73% increase from fourth-quarter 2012, and $42.62 million for the year, an 8.83% decrease from 2012.
Total sales were reported to be $4.8 billion for the quarter, a 6.29% decrease from the same period in 2012, and $19.59 billion for the year, an 11.14% increase from 2012. Among Global Partners' key accomplishments for the quarter was an expansion of its Basin Trainload crude oil terminals in Beulah and Columbus, North Dakota, that doubled storage capacity to 550,000 barrels. The company also acquired a West Coast crude oil and ethanol facility near Portland, Oregon, from Cascade Kelly Holdings LLC or an estimated $95 million. For more information, see January 29, 2013, article - Global Partners to Purchase Ethanol and Transloading Facility in Oregon for $95 Million.
Wholesale segment sales and volumes grew significantly, while sales and volumes in the Gasoline Distribution and System Operations segment made up half of the company's product margin for 2013, driven by the company's acquisition of Alliance Energy in the first quarter of 2012.
Early in the first quarter of 2013, Global Partners signed a five-year contract with Phillips 66 (NYSE:PSX) to use its rail transloading, logistics and transportation system to deliver crude oil from the Bakken Shale in North Dakota to Phillips 66's refinery in Bayway, New Jersey. The end of the fourth quarter marks Global Partners' first full year of operations under the deal.
Capital expenditures for full-year 2013 totaled $67 million, about $11 million of which was attributed to maintenance-related projects.
Industrial Info is tracking $7 million in active projects involving Global Partners, including the $2 million upgrade of a crude-by-rail system that connects to a petroleum products storage terminal in Albany, New York. The project involves installing four 13 million-British-thermal-unit boilers and boiler-house heaters, as well as distribution pipes, at the barge dock. The upgrades are expected to be completed in the third quarter.
"Global [Partners] delivered positive financial and operational results in 2013," said Eric Slifka, the president and chief executive officer of Global Partners, in a conference call. "Volume and margins increased in all three segments, highlighting the diversification of our product mix and the strength, stability and growth of our midstream logistics business. Crude oil was a key business driver in our Wholesale segment, generating double-digit [percentage] increases in product margin and volume for the year."
Global Partners executives expect to see between $18 million and $22 million in maintenance-related capital expenditures in 2014. The company continues to negotiate pipeline connections to broaden its service, with projects under way at both the terminals in North Dakota's Bakken Shale and the Global Partners' distribution facilities on the East and West coasts. The Oregon facility is being redesigned to handle both ethanol manufacturing and crude transloading.
"We also continue to pursue rail expansion opportunities to serve the distribution needs of the changing energy market for products, including biofuels, crude, refined petroleum products, and natural gas liquids," Slifka said in the conference call. "We've identified new logistics and marketing opportunities with energy producers in Canada recently, through our recently opened office in Calgary."
For more information, visit Industrial Info's North American Oil & Gas Terminals Project Database and North American Oil & Gas Pipelines Project Database.
View Plant Profile - 1016734
View Project Report - 300159538
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Total sales were reported to be $4.8 billion for the quarter, a 6.29% decrease from the same period in 2012, and $19.59 billion for the year, an 11.14% increase from 2012. Among Global Partners' key accomplishments for the quarter was an expansion of its Basin Trainload crude oil terminals in Beulah and Columbus, North Dakota, that doubled storage capacity to 550,000 barrels. The company also acquired a West Coast crude oil and ethanol facility near Portland, Oregon, from Cascade Kelly Holdings LLC or an estimated $95 million. For more information, see January 29, 2013, article - Global Partners to Purchase Ethanol and Transloading Facility in Oregon for $95 Million.
Wholesale segment sales and volumes grew significantly, while sales and volumes in the Gasoline Distribution and System Operations segment made up half of the company's product margin for 2013, driven by the company's acquisition of Alliance Energy in the first quarter of 2012.
Early in the first quarter of 2013, Global Partners signed a five-year contract with Phillips 66 (NYSE:PSX) to use its rail transloading, logistics and transportation system to deliver crude oil from the Bakken Shale in North Dakota to Phillips 66's refinery in Bayway, New Jersey. The end of the fourth quarter marks Global Partners' first full year of operations under the deal.
Capital expenditures for full-year 2013 totaled $67 million, about $11 million of which was attributed to maintenance-related projects.
Industrial Info is tracking $7 million in active projects involving Global Partners, including the $2 million upgrade of a crude-by-rail system that connects to a petroleum products storage terminal in Albany, New York. The project involves installing four 13 million-British-thermal-unit boilers and boiler-house heaters, as well as distribution pipes, at the barge dock. The upgrades are expected to be completed in the third quarter.
"Global [Partners] delivered positive financial and operational results in 2013," said Eric Slifka, the president and chief executive officer of Global Partners, in a conference call. "Volume and margins increased in all three segments, highlighting the diversification of our product mix and the strength, stability and growth of our midstream logistics business. Crude oil was a key business driver in our Wholesale segment, generating double-digit [percentage] increases in product margin and volume for the year."
Global Partners executives expect to see between $18 million and $22 million in maintenance-related capital expenditures in 2014. The company continues to negotiate pipeline connections to broaden its service, with projects under way at both the terminals in North Dakota's Bakken Shale and the Global Partners' distribution facilities on the East and West coasts. The Oregon facility is being redesigned to handle both ethanol manufacturing and crude transloading.
"We also continue to pursue rail expansion opportunities to serve the distribution needs of the changing energy market for products, including biofuels, crude, refined petroleum products, and natural gas liquids," Slifka said in the conference call. "We've identified new logistics and marketing opportunities with energy producers in Canada recently, through our recently opened office in Calgary."
For more information, visit Industrial Info's North American Oil & Gas Terminals Project Database and North American Oil & Gas Pipelines Project Database.
View Plant Profile - 1016734
View Project Report - 300159538
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
