Global Partners Profit Falls in Second Quarter
WALTHAM, Mass. — Global Partners LP saw its net income fall during the second quarter as it completed the $156-million acquisition of 97 primarily Mobil- and Exxon-branded retail gas stations and seven dealer supply contracts from Capitol Petroleum Group, the company reported Thursday during its 2015 second-quarter earnings call.
Net income for the quarter was $7.2 million, down from $30.4 million the previous quarter, but an improvement compared to the $12.7-million net loss it posted during the same quarter one year ago.
The completed Capitol Petroleum acquisition includes 51 retail locations and seven dealer supply accounts in New York City, and 46 retail locations in Prince George's County, Md., as CSNews Online previously reported.
"Our second-quarter performance reflects our diverse business," stated Global Partners President and CEO Eric Slifka. "Our gasoline distribution and station operations [GDSO] segment contributed a product margin of $98.3 million for the second quarter, an increase of 56 percent from the same period in 2014, primarily reflecting our January acquisition of Warren Equities. Our wholesale segment product margin was $60.9 million, compared with $34.5 million in the same period of 2014."
The integration of the Warren Equities assets is proceeding smoothly, Slifka added.
Sales during the second quarter were $2.7 billion, compared to $4.6 billion during Q2 2014, which Global Partners primarily attributed to lower commodity prices.
"We remain focused on strategic investments and organic projects that further enhance our growth potential," Slifka said. "The addition of Warren Equities and the Capitol Petroleum portfolio significantly expands our GDSO segment, and we look forward to the ongoing contribution of these assets. The Summit crude oil transmission pipeline that will link our Stampede, N.D., terminal to the Divide Gathering System is expected to be in service in the fourth quarter of 2015. It will expand our draw area and enhance the opportunity for producers to efficiently reach multiple downstream markets."
Waltham-based Global Partners is a midstream logistics and marketing company that owns, controls or has access to one of the largest terminal networks of petroleum products and renewable fuels in the Northeast. Global Partners also is one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York.
With approximately 1,600 locations, primarily in the Northeast, Global is one of the largest independent owners, suppliers and operators of gasoline stations and convenience stores.