US bulk liquid storage provider Westway Group has expanded its storage terminal asset list this year.
In May Westway joined forces with shell company Shermen WSC Acquisition Group and changed its name to Westway Group. On 15 June it opened phase I of the new custom terminal in Houston, Texas, and six weeks later acquired Stockton storage facility, located outside of San Francisco, California.
We completed a major credit facility which will provide up to $100 million (70.5 million) in financing to support our growth plans. We opened phase I of a new state-of-the-art storage facility which was custom built for a key new customer in Houston, Texas. Additionally, on 28 July 2009, we completed the acquisition of a storage facility with 7.6 million gallons of capacity, Peter Harding, Westway Groups CEO, says.
The news comes on the back of the companys publication of its three and six month period financial results.
For the three-month period ended 30 June 2009 Westway Group and subsidiaries reported actual consolidated results comprised of total operating revenues of $25.8 million, cost of sales and operating expenses of $20.5 million, and a resultant gross profit margin, after operating expenses, of $5.3 million.
Depreciation expense totalled $1.3 million and selling, general and administrative expenses were $2.8 million.
Excluding the business combination expenses totaling $13.7 million, actual consolidated earnings before income taxes, depreciation and amortization for the three-month period totalled $2.5 million. Net income available to common shareholders, before business combination expenses, was $3.8 million.
After inclusion of the one-time business combination expenses, the company incurred a net loss available to common shareholders of $9.9 million for the three months ended 30 June 2009.
Actual operating results were also impacted by several factors [including] a quarter-to quarter reduction in the through put of related party molasses stored at our European facilities; [and] a negative effect of foreign currency on our European activities due to significant weaknesses among various currencies against the US dollar, in particular the Euro, Pound Sterling and Canadian dollar,' Harding says. 'Since the end of the second quarter, all major currencies have made a substantive recovery from the lows against the US dollar.
For the future Westway has several major facilities under construction that will come on-line later in the year, namely Gray's Harbor, located in Washington State and phase 4 of its Houston 1 facility.
Westway operates an extensive global network of 24 operating facilities providing approximately 299 million gallons of total bulk liquid storage shell capacity and 30 facilities producing 1.7 million tons of liquid feed supplements annually. Westways facilities are located in North America, Western Europe and Asia.