Valero Energy Partners has reported a 2014 net income of US$ 12.2 million for Q2. The partnership generated earnings before interest, income taxes, depreciation, and amortisation (EBITDA) of US$ 15.6 million and distributable cash flow of US$ 15.7 million. Second quarter revenues were US$ 23.7 million for Q2 2014 in comparison to US$ 22.9 million in Q2 2013. The increase has been attributed to higher throughput volumes at the Port Arthur Logistics System, which were partially offset by lower throughput volumes in the Memphis Logistics System.
Total operating expenses for this quarter were US$ 5.7 million, general admin expenses were US$ 2.9 million and depreciation expenses were US$ 3 million. Combined, expenses were US$ 1.7 million higher than for Q2 2013, mainly due to incremental costs related to the management fee charged by Valero Energy Corporation, effective with the Partnership’s initial public offering of common units in December of last year, and the additional costs of operating as a separate publicly traded limited partnership.
As of the end of June this year, the partnership had US$ 682 million of liquidity consisting of US$ 382 million in cash and cash equivalents, as well as US$ 300 million in an undrawn revolving credit facility.
Joe Gorder, Chairman and CEO said, ‘our results for the second quarter were solid. We increased the partnership’s distribution by nearly 5% to US$ 0.2225 per unit, and subsequent to the close of the quarter, we completed our first acquisition of assets. These actions are consistent with our previously communicated growth strategy for the partnership.’
Adapted from press release by Claira Lloyd
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