This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: GLP

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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs