Global Partners LP (GLP) Q3 2024 Earnings Call Highlights: Strong Financial Performance and ...

In This Article:

  • Adjusted EBITDA: $114 million in Q3 2024, up from $77.7 million in Q3 2023.

  • Net Income: $45.9 million in Q3 2024, compared to $26.8 million in Q3 2023.

  • Distributable Cash Flow: $71.1 million in Q3 2024, up from $42.2 million in Q3 2023.

  • Adjusted Distributable Cash Flow: $71.6 million in Q3 2024, compared to $43.3 million in Q3 2023.

  • GDSO Product Margin: Increased by $31.2 million to $237.7 million in Q3 2024.

  • Gasoline Distribution Product Margin: Increased by $32.1 million to $164.1 million in Q3 2024.

  • Fuel Margins: Increased by $0.09 to $0.40 per gallon in Q3 2024 from $0.31 in Q3 2023.

  • Station Operations Product Margin: Decreased by $0.9 million to $73.6 million in Q3 2024.

  • Wholesale Segment Product Margin: Increased by $33.9 million to $71.1 million in Q3 2024.

  • Operating Expenses: Increased by $21.2 million to $137.1 million in Q3 2024.

  • SG&A Expense: Increased by $7 million to $70.5 million in Q3 2024.

  • Interest Expense: Increased by $14 million to $35.1 million in Q3 2024.

  • CapEx: $24.3 million in Q3 2024, with $11.2 million in maintenance CapEx and $13.1 million in expansion CapEx.

  • Fueling Stations and C-store Sites: Totaled 1,589 at the end of Q3 2024.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Global Partners LP (NYSE:GLP) reported significant year-over-year gains across key financial metrics, showcasing effective execution of their strategic initiatives.

  • The acquisition of 29 liquid energy terminals from Motiva Enterprises and Gulf Oil is expected to enhance operational efficiency and market reach.

  • The company completed the acquisition of a 730-acre liquid energy terminal in East Providence, Rhode Island, which offers strategic storage capabilities and potential for real estate diversification.

  • Global Partners LP (NYSE:GLP) was selected to partner with the Massachusetts Department of Transportation to deploy the National Electric Vehicle Infrastructure Program, accelerating their EV charging station plans.

  • The Board declared a quarterly cash distribution increase of 6.6% over the prior year, reflecting strong financial performance and commitment to returning value to unitholders.

Negative Points

  • Operating expenses increased by $21.2 million in the third quarter, largely due to recent terminal acquisitions, impacting overall profitability.

  • SG&A expenses rose by $7 million, driven by higher long-term incentive compensation, wages, and benefits, which could pressure margins.

  • Interest expenses increased by $14 million, primarily due to the issuance of senior notes and higher average balances on credit facilities, affecting net income.

  • The Station Operations product margin decreased by $0.9 million, partly due to the divestiture and conversion of certain company-operated sites.

  • The company faces high valuations in the market, making it challenging to find accretive acquisition opportunities that fit their strategic goals.