VTTI Energy Partners has reported its financial results for the fourth quarter ended 31 December 2014.
• Generated adjusted EBITDA(1) of $50.1 million (€44.3 million) for the fourth quarter of 2014, exceeding the Adjusted EBITDA of $49.1 million forecast at the time of our initial public offering in August 2014 (the “IPO”).
• Generated distributable cash flow(1) of $12.7 million for the fourth quarter of 2014, exceeding the distributable cash flow of $11.7 million forecast at the time of the IPO.
• Declared a quarterly cash distribution to unitholders of $0.26 per unit with respect to the fourth quarter of 2014, equivalent to our minimum quarterly distribution of $0.26 per unit or $1.05 per unit on an annualized basis. The implied distributable cash flow coverage ratio was 1.18x.
• Achieved a record annual Health, Safety and Environmental (HSE) performance.
(1) Adjusted EBITDA and distributable cash flow are non-GAAP financial measures.
Financial and operating results overview
The operating and financial performance of VTTI for the fourth quarter was consistent with the company’s expectations, and the partnership continued to evaluate growth opportunities and develop a number of greenfield and organic projects.
Total operating income for the fourth quarter was $30.4 million while net income was $11.4 million. Adjusted EBITDA for the fourth quarter was $50.1 million and the partnership generated $12.7 million of distributable cash flow, exceeding the forecasts at the time of the IPO of $49.1 million and $11.7 million respectively.
In 2014, VTTI also achieved its best ever annual HSE performance, with a recorded total injury rate of 1.9 injuries per million hours, which compares favourably with the highest industry standard.
Rob Nijst, CEO of VTTI, comments: ‘VTTI has a robust and stable business model with no direct commodity price exposure. Given our high quality international portfolio of terminals and strong customer position, we are well placed to capitalise on long term regional supply and demand imbalances in energy markets and react to any opportunities that may arise from changes in market pricing structures. Our growth strategy remains on track and we continue to look for expansion opportunities; both internally, from organic sources or dropdowns from VTTI B.V., and from external strategic greenfield development and brownfield acquisitions.’