Macquarie Infrastructure Corporation has seen strong second quarter financials following from the total acquisition of the International-Matex Tank Terminals (IMTT).
In July 2014 MIC acquired the remaining 50% interest in IMTT, which comprises 10 wholly owned marine storage terminals in the US and partial interests in two terminals in Canada. The terminals store and handle a wide variety of petroleum grades, chemicals and vegetable and animal oils.
MIC reports that revenue in this segment decreased in both the quarter and year to date periods in 2015 compared to the same periods in 2014, which reflects a reduction in spill response activity by IMTT subsidiary OMI Environmental Solutions and reduced heating revenue.
Heating revenue was unusually high during 2014 as a result of the Polar Vortex – a large pocket of very cold air which sits over the polar region during the winter season.
The decline in revenue was partially offset by storage pricing at IMTT that increased as a result of inflation adjustment provisions – however the volatility in commodity prices has resulted in customers having contracts with shorter timeframes.
Capacity utilisations at the terminals rose, and remained at historically normal levels throughout the first half of 2015 to 94.5%.
James Hook, CEO of MIC says: ‘We are pleased with the contribution to our overall results from each of our businesses, and particularly with the performance of the various acquisitions concluded since the end of the first quarter in 2014. As with the first quarter in 2015, our business generated free cash flow in the second quarter at levels ahead of our expectations at the start of the year.’