This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Global Partners Reports Fourth-Quarter And Full-Year 2011 Financial Results

Combined product volume totaled 5.2 billion gallons in 2011, compared with 3.7 billion gallons in 2010. Wholesale segment volume increased to 4.8 billion gallons versus 3.4 billion gallons in 2010. Commercial segment volume increased to 422.4 million gallons in 2011, compared with 273.1 million gallons in 2010.

Combined gross profit increased 26% to $209.6 million in 2011 from $166.7 million in 2010. Within the wholesale segment, gasoline net product margin rose 49% to $96.3 million from $64.7 million in 2010. The increase primarily reflected the contribution from the Mobil assets, together with the full-year impact from the Warex terminals acquisition in June of 2010 and increasing activity in gasoline blendstocks, primarily ethanol. Distillates net product margin decreased 38% to $50.4 million from $80.9 million in 2010, due to less favorable conditions in the distillates market. Residual oil and crude oil net product margin increased 83% to $17.2 million in 2011 from $9.4 million in 2010, primarily due to crude oil activity.

“Over the past two years, the strategic steps taken have strengthened and broadened our business base,” Slifka said. “We have added the downstream, vertically integrated activities arising from the Mobil stations and supply rights, established Global as a premier gasoline and blendstocks supplier in New York, and created a hub in Albany for the sourcing, transportation and marketing of distillates, gasoline, blendstocks and crude oil.”

Recent Developments
  • Global Partners announced on March 2 that it completed the acquisition of Alliance Energy LLC, a gasoline distributor and operator of gasoline stations and convenience stores. Alliance's portfolio includes approximately 540 gasoline stations in New England, New York, New Jersey and Pennsylvania. Alliance owns or has long-term leases on approximately 253 sites and has supply contracts for the remaining stations. The Partnership expects to incur approximately $5 million of one-time closing costs in the first quarter of 2012 in connection with the transaction.
  • The Board of Directors of the Partnership’s general partner, Global GP LLC, declared a quarterly cash distribution of $0.50 per unit ($2.00 per unit on an annualized basis) on all of its outstanding common units for the period from October 1 through December 31, 2011. The distribution was paid on February 14, 2012 to unitholders of record as of the close of business February 3, 2012.

Business Outlook

“Near term, we expect our first-quarter performance will be weak due to extraordinarily warm weather, which is affecting heating oil sales, and increasing gasoline prices, which is affecting demand and gas station margins,” Slifka said. “Looking ahead, we have several organic infrastructure projects in the pipeline that we expect to contribute positively to our results in the second half of 2012 and beyond. For example, we are in the process of doubling the rail capacity at our Albany terminal, allowing gasoline blendstocks and crude to be offloaded simultaneously. In North Dakota, meanwhile, we are completing construction of a 100,000-barrel storage tank.”

3 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs