Global Partners LP (NYSE: GLP) today reported financial results for the second quarter ended June 30, 2013.
Comments on the Second Quarter
“Our second-quarter 2013 results were not as strong as the same period in 2012, primarily because of lower retail gasoline margins and a less favorable distillates market,” said Eric Slifka, the Partnership’s President and Chief Executive Officer. “In addition, weather conditions in the Bakken region delayed planned tank and pipeline expansion at and to our crude transload facilities in North Dakota.”
“At Columbus, ND, which connects via single line haul on Canadian Pacific to our facility in Albany, NY, expansion of capacity from 100,000 to 270,000 barrels should now be finished early next year,” Slifka said. “In addition, Tesoro Logistics has completed a new seven-mile lateral from its Lignite, ND crude oil station to our Columbus transload facility. The lateral will carry crude from various gathering points along the Tesoro High Plains Pipeline System. At Beulah, ND, we are building 280,000 barrels of storage capacity, which we now expect to bring online by the end of this year.”
“Also during the quarter, we began receiving and distributing product from our new rail-fed propane storage facility in Albany,” Slifka said. “This 540,000-gallon terminal can source advantaged propane directly from Midwest and Canadian sources via single-line haul on Canadian Pacific as well as from the East Coast.”
Second Quarter 2013 Financial Summary
Net income for the second quarter of 2013 was $8.7 million, or $0.29 per diluted limited partner unit, compared with net income of $18.5 million, or $0.66 per diluted limited partner unit, for the second quarter of 2012.
Combined net product margin for the second quarter of 2013 was $111.2 million, compared with $100.2 million for the same period in 2012.
Gross profit for the second quarter of 2013 was $97.9 million, compared with $90.7 million for the second quarter of 2012.