Boston, MA 05/19/2014 (wallstreetpr) – Arc Logistics Partners LP (NYSE:ARCX) reported its operating results for the first quarter ended March 31, 2014.
A. Revenue
During 1Q2014, the Partnership’s revenues were $13.2 million, increase by 38% compared to revenues of $9.6 million in 1Q2013. The increase was due to the positive impact of existing and new facilities, execution of new services, and increased throughput and transloading activities and ancillary services.
Arc Logistics Partners LP (NYSE:ARCX) completed new storage capacity of 150K barrels with the extension of Mobile terminal and procurement of Portland terminal. As a result, the Partnership’s total storage capacity increased by 34% to ~6.4 million barrels as of March 31, 2014.
During 1Q2014, the Partnership’s throughput activity increased by 20% to 70.4 mbpd because of the full quarter impact of the Mobile, Saraland and Brooklyn terminals.
B. Adjusted EBITDA
The acquisition of new terminals in Brooklyn and Portland and increased customer activity doubled the operating costs for the period to $7.1 million (1Q2013: $3.5 million). The capacity additions compressed the Partnership’s bottom line; therefore, net income was down by 81% to $1.9 million from $9.9 million in 1Q2013.
However, the result of increased customer activity, operating results of Mobile, Saraland and Brooklyn terminals; and expansion of projects improved the Partnership’s adjusted EBITDA by 49% to $7.4 million in 1Q2014 (1Q2013: $4.9 million). In January 2014, Arc Logistics Partners LP (NYSE:ARCX) extended its operation over the West Coast market with new Portland terminal.
C. Distribution cash flow
The increase in adjusted EBITDA improved the distributable cash flow to $5.4 million compared to prior year period. The increase will further enhance its capability to generate sufficient cash to address the near term operation and support indebtedness and increase the cash distribution for its unit holders.
Arc Logistics Partners LP (NYSE:ARCX) declared a cash distribution of $0.3875 per unit ($1.55 per unit on annually) for the period ended March 31, 2014.
