Revenues for World Point Terminals first quarter of 2015 has increased by $2.4 million (€2.1 million) partially due to the acquisition of three terminals.
Base storage services fee increased by 15% primarily as a result of the addition of the Blakeley Island and Chickasaw terminals in the second quarter of 2014, and the addition of the Greensboro terminal in the first quarter of 2015.
However, excess storage fees decreased by $200,000 (€175,000) as a result of decreased throughput at the Newark terminal.
Operating expenses for the first three months of 2014 increased by 2% compared to the same period the previous year due to a surge in labour costs attributed to the purchase of the Blakeley Island, Chickasaw and Greensboro terminals as well as an increase in repairs and maintenance, property taxes and other expenses.
Net income for the three months increased by 7%.
The company says in a statement: ‘The partnership reported strong growth in both revenue and adjusted EBITDA in the first quarter, due primarily to revenue from the Greensboro, Chickasaw and Blakeley Island terminals.
‘In addition, we had 580,000 barrels of tankage contracted under spot contracts that replaced revenues from contracts that were not renewed at the end of 2014. There is no certainty that we 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.
‘Despite the likelihood that we may experience some near-term under-utilization of our assets, we maintain our belief that the long-term outlook for our industry remains strong.’