(Amounts in thousands of U.S. dollars, except share and per share data,
or as indicated)
MONTREAL, Aug. 13 /CNW/ - World Point Terminals Inc. (the "Company") is
pleased to announce its results for the first six months of 2008. During the
first six months of 2008 virtually 100% of the Company's tankage remained
under contract, although two tanks were out of service throughout much of the
second quarter. The Company saw those tanks which were out of service in the
first quarter return to service. South Riding Point is nearing completion on
two new tanks totaling 1.5 million barrels of additional capacity. Both tanks
are anticipated to be operational in September.
RESULTS OF OPERATIONS
Revenues from continuing operations for the first six months of 2008 were
$38,569 compared to $35,462 in 2007 - a 9 percent increase. This increase
primarily results from increased heating revenues, which are partially offset
by increased utility costs, the continued growth in storage capacity within
Center Point and, to a lesser extent, storage rate increases.
Center Point's revenues grew by $3,416 for the first six months of 2008
or 14 percent as compared to the first six months of 2007. This increase was
due to fewer tanks being out of service in the first half of 2008 compared to
the first half of 2007 and new tankage placed in service at the Galveston
terminal. Additionally, the Company was able to pass increased utility costs
to its customers in the form of increased heating charges.
South Riding Point's revenues decreased by $457 or 5 percent for the
first six months of 2008 compared to the first six months of 2007. $247 of
this decrease was attributable to crude oil sales which took place in the
first half of 2007 that did not repeat in the first six months of 2008. The
remaining decrease was a result of a decline in shipping revenues in the first
six months of 2008. Marine activities are dictated entirely by the operations
of our customers and are subject to significant variations. It is difficult to
predict if and when 2007 activity levels will return to the South Riding Point
Freepoint's revenues increased by $148 for the first six months of 2008
or 12 percent compared to the first six months of 2007. This increase is a
result of rate increases, fuel-surcharges and the strategic bare-boat
chartering of two of its vessels.
Operating expenses for the first six months of 2008 totaled $17,042 as
compared to $15,708 for the first six months of 2007, an 8 percent increase.
This increase was primarily the result of higher natural gas, fuel oil and
fuel additive prices. Additionally, repairs and maintenance costs for the six
months increased by $138 between years primarily due to major repairs at the
Baltimore and South Riding Point facilities.
South Riding Point is currently engaged in arbitration with a company it
had contracted with to repair its sea island jetty. Such repairs were
necessary largely due to the impact of hurricanes that hit the Bahamas in
2004. The expenses of this arbitration, principally legal fees, will continue
to impact income from continuing operations throughout the remainder of 2008.
Net income for the first six months of 2008 was $9,903 versus $7,529 for
the first six months of 2007 and basic earnings per share were US$0.409 versus
US$0.321. Diluted earnings per share increased to US$0.409 in the first six
months of 2008 from US$0.313 in the first six months of 2007. Income from
continuing operations in the first six months of 2008 was $10,740 versus
$7,956 in the first six months of 2007 and basic earnings per share from
continuing operations were US$0.444 in the first six months of 2008 versus
US$0.339 in the first six months of 2007. It should be noted that the results
of operations for the first six months of 2008 reflect gains related to
insurance proceeds ($1,536), interest rate swaps ($322) and foreign currency
positions ($279). No such gains were reported in the first six months of 2007.
The insurance gain is not attributed to the underlying operations of the
business, but rather the accounting for our ongoing insurance claims stemming
from hurricane damage South Riding Point incurred in 2004.
Operating income (net income excluding income taxes, general corporate
expenses and discontinued operations) increased from $13,434 for the first six
months of 2007 to $16,761 for the first six months of 2008.
Additional information by operating segment is included in the footnotes
to the interim financial statements filed on Sedar. The Company believes that
information by operating segment provides the reader with a better
understanding of the important factors affecting its results.
For the remainder of the 2008 fiscal year, virtually all of the Company's
tankage continues to be under contract. However, market conditions have
softened and revenues which are dependent on throughput volumes have been
slightly lower than anticipated. In addition, completion on its construction
of two additional tanks at the Bahamas facility which will add 1.5 million
barrels of storage capacity has been delayed due to weather and contractor
issues. Both tanks are now estimated to be completed in September 2008. While
the Company continues discussion with several parties, it does not yet have a
contract for the tanks when completed. Center Point continues work on its
expansion project at its Galveston, Texas, terminal. This expansion will be
significant for this terminal and the Company has customers committed to
utilizing the new capacity.
World Point Terminals Inc. ("World Point") and its subsidiaries (the
"Company") own and operate 14.5 million barrels of liquid bulk storage and
terminal facilities located in North America ("Center Point") and the Bahamas
("South Riding Point"). These facilities store, blend, and transship petroleum
and other liquid products as an integral part of the wholesale distribution
system. Through a joint venture, the Company also operates a fleet of tugboats
around Grand Bahama Island in the Bahamas ("Freepoint").
On behalf of the Board:
Bernard A. Roy
President and CEO
August 14, 2008
Cautionary Statement Regarding Forward-Looking Statements
Some of the statements contained in this release may be forward-looking
statements, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition to exist or occur. Since
forward-looking statements, by their very nature, involve inherent risks and
uncertainties, actual results in the future could differ materially from those
currently anticipated in such statements by reason of factors including, but
not limited to, changes in economic and market conditions and changes in world
political stability. World Point Terminals will not update or revise any
forward-looking statements for new information, future events or otherwise.
This discussion and analysis of operating results and the financial
position of the Company should be read in conjunction with the second quarter
2008 report to shareholders and the 2007 audited financial statements of the
Company and Management's Discussion and Analysis as filed on Sedar.
For further information:
For further information: Bernard A. Roy, President and CEO, (514)