Valero has reported a Q4 2014 net income of US$19.1 million. The company generated earnings before interest, income taxes, depreciation, and amortisation (EBITDA) of US$23.7 million and distributable cash flow of US$22.6 million. The company’s coverage ration for Q4 of last year was 1.43x. Q4 revenues last year were US$34.2 million versus 2013 revenues of US$33.1 million. The increase was related primarily to higher throughput volumes in the Memphis and Port Arthur Logistics Systems and in the Three Rivers Crude System.
Operating expenses of Q4 2014 were US$ 7.7 million, general and administrative expenses were US$2.9 million, and depreciation expense was US$4.4 million. These expenses combined totalled US$1 million lower than for the same period in 2013, mainly due to lower maintenance expense, which was partially offset by additional costs of operating as a separate publicly traded master limited partnership, incremental costs related to the management fee charged by Valero Energy Corporation, and costs related to the retirement of assets replaced in the Memphis Logistics System.
Valero Chairman and CEO, Joe Gorder said, “the partnership finished its fourth quarter and first full year with strong performance. In January 2015, we announced an increase in the partnership’s quarterly distribution to US$0.266 /unit, or almost 11% above the previous quarterly distribution and 25% above the minimum quarterly distribution. We are pleased to have delivered our unit holders growth in distributions near the top end of our targeted range.”
Edited from press release by Claira Lloyd
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