US-based Westway Group has seen bulk liquid storage revenues increase by $3.8 million (2.75 million) or 22% in Q4 compared to the three months ended 30 September 2009.
Adjusted gross profit increased by $3 million or 30%. Additionally, the adjusted gross profit margin increased from 56.6% to 60.6%. The contribution to Adjusted EBITDA from bulk liquid storage increased $4.8 million, up 61% for the fourth quarter.
These improvements in the quarter to quarter comparison are primarily attributable to the acquisition of its Cincinnati Terminal, which was completed in mid-October, the expansion of its Houston facility, and the completion of its Gray's Harbor Washington facility, which began operations in December.
In the liquid storage business, the primary drivers of performance are total capacity, capacity utilization, rates, and throughput. Westways total capacity increased from approximately 284 million gallons in 2008 to approximately 350 million gallons in 2009, and its capacity utilisation was consistently high at around 95%.
It utilises long-term contractual arrangements in its bulk liquid storage business, which include annual CPI adjustments.