(Amounts in thousands of U.S. dollars, except share and per share data,
or as indicated)
MONTREAL, Aug. 13 /CNW/ - TSX:WPO: World Point Terminals Inc. (the
"Company") is pleased to announce its results for the second quarter of 2009.
During the first six months of 2009 virtually 100% of the Company's tankage
remained under contract.
RESULTS OF OPERATIONS
Revenues from continuing operations for the first six months of 2009 were
$48,138 compared to $38,569 in 2008, an increase of 25 percent. This increase
primarily results from the continued growth in storage capacity within Center
Point and South Riding Point. Additionally, the Company has seen marine
activity increase at its South Riding Point facility which generates
additional port fee revenues.
Center Point's revenues grew by $1,383 for the first six months of 2009
or 5 percent as compared to the first six months of 2008.
South Riding Point's revenues increased by $8,061 or 92 percent for the
first six months of 2009 compared to the same period in 2008. This increase
was attributable to both higher storage and marine revenues. Storage revenues
increased due to 1.5 million barrels of new storage coming into service in the
third and fourth quarters of 2008. While the Company anticipates revenues from
marine activity to remain strong throughout 2009, these revenues are difficult
to predict as they fluctuate based on the business decisions of the Company's
customers and general market conditions.
Freepoint's revenues increased by $125 for the first six months of 2009
or 9 percent compared to the first six months of 2008. This increase is a
result of rate increases and fuel-surcharges. Operating expenses for the first
six months of 2009 totaled $17,365 as compared to $17,042 for the first six
months of 2008, a 2 percent increase. This increase was primarily attributable
to the business license fee imposed by the Bahamian government on South Riding
As previously disclosed, in 2008, South Riding Point was contacted by
representatives of the Bahamian government regarding the nonpayment of a local
revenue based tax spanning previous years' revenue. As a result, South Riding
Point incurred $545 related to the business license fees imposed by the
Net income for the first six months of 2009 was $15,892 versus $9,903 for
the first six months of 2008 and basic earnings per share were US$0.654 versus
US$0.409. Diluted earnings per share increased to US$0.653 in the first six
months of 2009 from US$0.409 in the first six months of 2008. Income from
continuing operations in the first six months of 2009 was $15,835 versus
$10,740 in the first six months of 2008 and basic earnings per share from
continuing operations were US$0.652 in the first six months of 2009 versus
US$0.444 in the first six months of 2008. It should be noted that the results
of operations for the first six months of 2009 reflect a gain related to
insurance proceeds of $773. The 2008 results of operations include a gain from
insurance proceeds of $1,536. The insurance gains are not reported as part of
the underlying operations of the business, but rather the accounting for our
ongoing insurance claims.
Operating income (net income excluding income taxes, general corporate
expenses and discontinued operations) increased from $16,761 for the first six
months of 2008 to $22,575 for the first six months of 2009.
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.
The outlook for the remainder of the 2009 fiscal year is positive as
virtually all of the Company's tankage continues to be under contract through
2009. Market conditions have allowed the Company to maintain or increase rates
at its facilities; however, management cannot give any assurance that the
existing market rates will continue when contracts come up for renewal. Center
Point's expansion project at its Galveston terminal was completed in the
second quarter which brought its total capacity to 1.6 million barrels.
On June 17, 2009, the Company issued 1,000,000 shares in a private
placement. The price per share was C$10.34. The Company received $9,140 for
the placement of the shares, which will be used to acquire the terminal assets
located on the Weirton, West Virginia land from an affiliate of the purchaser
of the shares in the private placement.
On July 8, 2009, the Company signed a stock purchase and sale agreement
with StatoilHydro ASA ("Statoil") for the possible sale of its Bahamian
operations. Those operations include the South Riding Point storage terminal
and the fifty percent interest in the Freepoint tug boat business, both
located on Grand Bahama Island. Consummation of the proposed sale is subject
to significant conditions, including Statoil's completion of satisfactory due
diligence and the successful negotiation of a long-term extension of the
facility lease with the Bahamian government.
World Point Terminals Inc. ("World Point") and its subsidiaries (the
"Company") own and operate 16.5 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 13, 2009
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
2009 report to shareholders and the 2008 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)