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Smart energy communities that integrate multiple clean energy technologies are key to developing zero carbon cities


BOULDER, Colo.--(BUSINESS WIRE)--#Blockchain--A new report from Guidehouse Insights analyzes the global market for technologies that support the development of smart energy community concepts, providing forecasts for all world regions, including breakouts by advanced energy technologies and smart grid applications, through 2030.

As the nature of energy generation and use becomes more distributed, more flexible, and more digital, entire communities are beginning to combine various emerging smart energy technologies to achieve greater levels of grid resilience and reliability at a lower financial cost. Whether isolated islands, green field residential developments, or urban multifamily housing blocks, smart energy communities are combining renewable energy generation, energy storage, smart meters, green buildings, blockchain, and other technologies to exert more control over their energy usage. Click to tweet: According to a new report from @WeAreGHInsights, the cities and communities smart energy market is expected to grow to $63.9 billion by 2030 at a compound annual growth rate (CAGR) of 10%.

“The need for smart energy communities is being driven primarily by the need to increase energy resilience and reduce carbon emissions,” says Eric Woods, research director with Guidehouse Insights. “Energy consumers are also expressing an interest in using energy that is generated locally and that they can partly control. Other clean energy developments, such as the expansion of electric vehicle ownership, are also influencing new approaches to community energy provision.”

While technology challenges still exist, the biggest barrier to the faster deployment of smart energy communities is the need for complex stakeholder management. The sometimes-conflicting demands of residents, local government, energy providers, grid operators, regulators, and real estate developers all need to be balanced. Open and transparent communication between stakeholders and early community engagement are therefore key to successful projects.

The report, Smart Energy Communities, analyzes the global market for technologies that are often combined in smart energy community concepts. The market forecast provides an analysis of market issues, including emerging trends, opportunities, and barriers, for the deployment of these community-based configurations of smart energy technology. Global market forecasts are included for all world regions, including breakouts by advanced energy technologies and smart grid applications, and extend through 2030. The report also examines key issues related to the development of smart energy communities as well as select industry players and case studies. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse

Guidehouse is a leading global provider of consulting services to the public and commercial markets with broad capabilities in management, technology, and risk consulting. We help clients address their toughest challenges with a focus on markets and clients facing transformational change, technology-driven innovation and significant regulatory pressure. Across a range of advisory, consulting, outsourcing, and technology/analytics services, we help clients create scalable, innovative solutions that prepare them for future growth and success. Headquartered in Washington DC, the company has more than 7,000 professionals in more than 50 locations. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets and agenda-setting issues driving national and global economies. For more information, please visit: www.guidehouse.com.

* The information contained in this press release concerning the report, Smart Energy Communities, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.


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Lindsay Funicello-Paul
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  • Reports Q3 Revenues of $779.3 Million
  • Posts Q3 Net Income of $54.9 Million; EPS of $0.99; Adjusted EPS of $0.90
  • Achieves Adjusted EBITDA of $161.2 Million, Including $13.3 Million From Government Assistance Programs
  • Generates $29 Million in Q3 Decontamination Emergency Response Revenue
  • Delivers Record Quarterly Adjusted Free Cash Flow of $123.5 Million
  • Raises 2020 Adjusted EBITDA and Adjusted Free Cash Flow Guidance

NORWELL, Mass.--(BUSINESS WIRE)--Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, today announced financial results for the third quarter ended September 30, 2020.


We delivered strong third-quarter results that came in ahead of our expectations,” said Alan S. McKim, Chairman, President and Chief Executive Officer. “Our performance reflects the resiliency of our business model, as well as the dedication of our people. We have now improved our Adjusted EBITDA margins for 11 consecutive quarters. In response to the pandemic and the dynamic market conditions it created, we established a leadership position in providing advanced decontamination and disposal services for customers affected by COVID-19. We also substantially improved our operational efficiencies and lowered our overall cost structure, which is reflected in our third-quarter margin performance. During the quarter, we saw a steady sequential pick up from the second quarter across several of our core lines of business, particularly within Safety-Kleen.”

Third-Quarter 2020 Results

Revenues were $779.3 million compared with $891.7 million in the same period of 2019. Income from operations was $83.9 million compared with $80.4 million in the third quarter of 2019.

Net income was $54.9 million, or $0.99 per diluted share. This compares with net income of $36.4 million, or $0.65 per diluted share, for the same period in 2019. Adjusted for certain items in both periods, adjusted net income was $49.9 million, or $0.90 per diluted share, for the third quarter of 2020, compared with adjusted net income of $40.7 million, or $0.72 per diluted share, in the same period of 2019. (See reconciliation table below)

Adjusted EBITDA (see description below) was $161.2 million, including $13.3 million of benefit from U.S. and Canadian government assistance programs, compared with $156.6 million in the same period of 2019.

Q3 2020 Review

Environmental Services delivered strong profitability through a combination of cost reductions, productivity improvements, a healthy mix of higher margin work and government incentives,” McKim said. “We experienced a lower utilization rate of 80% at our incinerators in the quarter due to the timing of turnarounds and a production lag from some customers, but we continued to execute on our strategy to capture higher-value waste streams across our network. This resulted in an average price per pound increase of 5% from the prior year. Landfill volumes declined nominally, as stronger base business largely offset the lack of remediation and waste projects caused by the pandemic. While still below historical averages, activity in other service areas of the segment, including Technical Services and Industrial Services, saw steady increases in demand at key customers during the quarter.

Revenue from COVID-19 decontamination work totaled $29 million in the quarter, which helped drive a 20% top-line increase in Field Services,” McKim said. “Our team has now completed more than 9,000 COVID-19 responses, reinforcing our leadership position. We are extremely proud of the decontamination work being done by our people out on the front lines as they limit the spread of this virus, protect our customers and make our communities and workplaces safe again.

Safety-Kleen rebounded from the shelter-in-place restrictions that had severely disrupted customer demand in the second quarter of 2020,” McKim said. “In fact, on a year-over-year basis, revenue in our branch business was only off 6% in Q3 – much better than we anticipated. The lifting of local restrictions across much of North America led to an increase in vehicle miles driven generating improved lubricant demand. Based on the strength of the recovery in near-term demand for base oil and finished lube products, we restarted three re-refineries that were taken offline at the outset of the pandemic. Given the declining market value of waste oil, we maintained high charge-for-oil (CFO) rates for used motor oil (UMO) and increased our collection volumes to 50 million gallons, 16% ahead of second-quarter levels.”

Business Outlook and Financial Guidance

We enter the final quarter of 2020 positioned for continued success in the current environment,” McKim said. “Our market leadership and renowned emergency response capabilities have enabled us to capitalize on opportunities and safely navigate the challenges presented by the pandemic. Over the past two quarters, prudent cost actions and reduced capital spending have helped us drive record Adjusted EBITDA margins and adjusted free cash flow. We believe that our COVID-19 decontamination business can continue to help hedge against potential slowdowns in revenue and profitability in other parts of the Company.

Within Environmental Services, we anticipate a sequential uptick in incineration utilization in the fourth quarter as we saw steady increases in production and waste volumes at our key customers during the third quarter. Because virus-related project delays remain, we do not expect landfills to fully recover until sometime in 2021 when we believe PFAS and other larger opportunities start to come to market. For Industrial Services and Technical Services, we anticipate our core service offerings to close out the year on an upward trajectory. Field Services remains on track for a great year, with anticipated COVID-related revenue exceeding $100 million.

Our Safety-Kleen branch business remains below historical levels, but demand has improved markedly from the lows of April and May. With the ongoing spike in COVID-19 cases, we are sensitive to the possibility of new shelter-in-place mandates that could disrupt the recovery of this business. For Safety-Kleen Oil, our primary re-refineries are all back online and base oil pricing is stable. We continue to actively manage our CFO rates with the goal of growing collection volumes to supply our re-refinery network,” McKim concluded.

Based on its year-to-date financial performance and current market conditions, Clean Harbors raised its Adjusted EBITDA and Adjusted free cash flow guidance ranges and currently expects:

  • Adjusted EBITDA in the range of $530 million to $550 million, based on anticipated 2020 GAAP net income in the range of $104 million to $130 million; and
  • Adjusted free cash flow in the range of $250 million to $270 million, based on anticipated 2020 net cash from operating activities in the range of $405 million to $445 million.

Non-GAAP Results

Clean Harbors reports Adjusted EBITDA, which is a non-GAAP financial measure and should not be considered an alternative to net income or other measurements under generally accepted accounting principles (GAAP), but viewed only as a supplement to those measurements. Adjusted EBITDA is not calculated identically by all companies, and therefore the Company’s measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Clean Harbors believes that Adjusted EBITDA provides additional useful information to investors since the Company’s loan covenants are based upon levels of Adjusted EBITDA achieved and management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA in accordance with its existing revolving credit agreement, as described in the following reconciliation showing the differences between reported net income and Adjusted EBITDA for the three and nine months ended September 30, 2020 and 2019 (in thousands):

 

For the Three Months Ended:

 

For the Nine Months Ended:

 

September 30,
2020

 

September 30,
2019

 

September 30,
2020

 

September 30,
2019

 

 

 

 

 

 

 

 

Net income

$54,910

 

$36,369

 

$95,505

 

$73,589

Accretion of environmental liabilities

2,822

 

2,490

 

8,149

 

7,624

Depreciation and amortization

74,470

 

73,756

 

221,497

 

223,328

Other (income) expense, net

(2,268)

 

427

 

597

 

(1,992)

Loss on sale of businesses

118

 

 

3,376

 

Loss on early extinguishment of debt

 

6,119

 

 

6,119

Interest expense, net

17,407

 

19,702

 

54,848

 

59,681

Provision for income taxes

13,712

 

17,750

 

35,269

 

39,752

Adjusted EBITDA

$161,171

 

$156,613

 

$419,241

 

$408,101

Adjusted EBITDA Margin

20.7%

 

17.6%

 

17.9%

 

16.1%

This press release includes a discussion of net income and earnings per share adjusted for the loss on early extinguishment of debt, net of tax of $1.8 million, the loss on sale of businesses and the impacts of tax-related valuation allowances and other as identified in the reconciliations provided below. The Company believes that discussion of these additional non-GAAP measures provides investors with meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance. The following shows the difference between net income and adjusted net income, and the difference between earnings per share and adjusted earnings per share for the three and nine months ended September 30, 2020 and 2019 (in thousands, except per share amounts):

For the Three Months Ended:

 

For the Nine Months Ended:

September 30,
2020

 

September 30,
2019

 

September 30,
2020

September 30,
2019

Adjusted net income

 

 

 

Net income

$54,910

 

$36,369

$95,505

$73,589

Loss on early extinguishment of debt, net of tax of $1.8m

 

4,284

 

 

4,284

Loss on sale of businesses

118

 

 

3,376

 

Tax-related valuation allowances and other*

(5,128)

 

 

(4,502)

 

4,762

Adjusted net income

$49,900

 

$40,653

$94,379

$82,635

 

Adjusted earnings per share

Earnings per share

$0.99

 

$0.65

$1.71

$1.31

Loss on early extinguishment of debt, net of tax of $1.8m

 

0.07

 

 

0.08

Loss on sale of businesses

 

 

0.06

 

Tax-related valuation allowances and other*

(0.09)

 

 

(0.08)

 

0.08

Adjusted earnings per share

$0.90

 

$0.72

$1.69

$1.47

 

* For the three and nine months ended September 30, 2020, other amounts include a $1.6 million benefit, or $0.03 per share, related to tax benefits from impacts of prior period tax filing amendments.

Adjusted Free Cash Flow Reconciliation

Clean Harbors reports adjusted free cash flow, which it considers to be a measurement of liquidity that provides useful information to investors about its ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities excluding cash impacts of items derived from non-operating activities, less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets. The Company excludes cash impacts of items derived from non-operating activities such as taxes paid in connection with divestitures and in the current period have also excluded cash paid in connection with the purchase of its corporate headquarters and certain capital improvements to the site as these expenditures are considered one-time in nature. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore the Company’s measurement of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

An itemized reconciliation between net cash from operating activities and adjusted free cash flow is as follows for the three and nine months ended September 30, 2020 and 2019 (in thousands):

For the Three Months Ended:

 

For the Nine Months Ended:

September 30,
2020

 

September 30,
2019

 

September 30,
2020

 

September 30,
2019

Adjusted free cash flow

 

 

 

Net cash from operating activities

$143,946

 

$146,205

 

$317,432

 

$284,675

Additions to property, plant and equipment

(24,636)

 

(56,161)

 

(150,357)

 

(174,533)

Purchase and capital improvements of corporate HQ

 

 

21,080

 

Proceeds from sale and disposal of fixed assets

4,206

 

1,559

 

7,307

 

8,948

Adjusted free cash flow

$123,516

 

$91,603

$195,462

$119,090

Adjusted EBITDA Guidance Reconciliation

An itemized reconciliation between projected GAAP net income and projected Adjusted EBITDA is as follows (in millions):

 

 

 

For the Year Ending
December 31, 2020

Projected GAAP net income

 

 

$104

to

$130

Adjustments:

 

 

 

 

 

Accretion of environmental liabilities

 

 

11

to

10

Depreciation and amortization

 

 

295

to

285

Other expense, net

 

 

1

to

1

Loss on sale of businesses

 

 

3

to

3

Interest expense, net

 

 

74

to

73

Provision for income taxes

 

 

42

to

48

Projected Adjusted EBITDA

 

 

$530

to

$550

Adjusted Free Cash Flow Guidance Reconciliation

An itemized reconciliation between projected net cash from operating activities and projected adjusted free cash flow is as follows (in millions):

 

 

 

For the Year Ending
December 31, 2020

Projected net cash from operating activities

 

 

$405

to

$445

Additions to property, plant and equipment

 

 

(186)

to

(206)

Purchase and capital improvements of corporate headquarters

 

 

21

to

21

Proceeds from sale and disposal of fixed assets

 

 

10

to

10

Projected adjusted free cash flow

 

 

$250

to

$270

Conference Call Information

Clean Harbors will conduct a conference call for investors today at 9:00 a.m. (ET) to discuss the information contained in this press release. During the call, management will discuss Clean Harbors’ financial results, business outlook and growth strategy. Investors who wish to listen to the webcast and view the accompanying slides should visit the Investor Relations section of the Company’s website at www.cleanharbors.com. The live call also can be accessed by dialing 201.689.8881 or 877.709.8155 prior to the start time. If you are unable to listen to the live conference call, the webcast will be archived on the Company’s website.

About Clean Harbors

Clean Harbors (NYSE: CLH) is North America’s leading provider of environmental and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, energy and manufacturing, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates in the United States, Canada, Mexico, Puerto Rico and India. For more information, visit www.cleanharbors.com.

Safe Harbor Statement

Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “seeks,” “should,” “estimates,” “projects,” “may,” “likely,” or similar expressions. Such statements may include, but are not limited to, statements about future financial and operating results, and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors’ management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, the risks and uncertainties surrounding COVID-19 and the related impact on the Company’s business, and those items identified as “Risk Factors” in Clean Harbors’ most recently filed Form 10-K and Form 10-Q. Forward-looking statements are neither historical facts nor assurances of future performance. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the “Investors” section of Clean Harbors’ website at www.cleanharbors.com.

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

For the Three Months Ended:

For the Nine Months Ended:

September 30,
2020

 

September 30,
2019

September 30,
2020

 

September 30,
2019

 

 

 

 

 

 

 

Revenues

$779,344

 

$891,668

 

$2,347,907

 

$2,541,185

Cost of revenues (exclusive of items shown separately below)

511,629

 

612,754

 

1,588,976

 

1,772,051

Selling, general and administrative expenses

106,544

 

122,301

 

339,690

 

361,033

Accretion of environmental liabilities

2,822

 

2,490

 

8,149

 

7,624

Depreciation and amortization

74,470

 

73,756

 

221,497

 

223,328

Income from operations

83,879

 

80,367

 

189,595

 

177,149

Other income (expense), net

2,268

 

(427)

 

(597)

 

1,992

Loss on sale of businesses

(118)

 

 

(3,376)

 

Loss on early extinguishment of debt

 

(6,119)

 

 

(6,119)

Interest expense, net

(17,407)

 

(19,702)

 

(54,848)

 

(59,681)

Income before provision for income taxes

68,622

 

54,119

 

130,774

 

113,341

Provision for income taxes

13,712

 

17,750

 

35,269

 

39,752

Net income

$54,910

 

$36,369

 

$95,505

 

$73,589

Earnings per share:

 

 

 

 

 

 

 

Basic

$0.99

 

$0.65

 

$1.72

 

$1.32

Diluted

$0.99

 

$0.65

 

$1.71

 

$1.31

 

 

 

 

 

 

 

 

Shares used to compute earnings per share — Basic

55,592

 

55,850

 

55,646

 

55,858

Shares used to compute earnings per share — Diluted

55,738

 

56,165

 

55,832

 

56,109

 

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

 

September 30, 2020

 

December 31, 2019

Current assets:

 

 

 

Cash and cash equivalents

$475,706

 

$371,991

Short-term marketable securities

56,639

 

42,421

Accounts receivable, net

602,069

 

644,738

Unbilled accounts receivable

59,438

 

56,326

Deferred costs

20,212

 

21,746

Inventories and supplies

220,884

 

214,744

Prepaid expenses and other current assets

58,711

 

48,942

Total current assets

1,493,659

 

1,400,908

Property, plant and equipment, net

1,539,333

 

1,588,151

Other assets:

 

 

 

Operating lease right-of-use assets

146,454

 

162,206

Goodwill

524,261

 

525,013

Permits and other intangibles, net

392,401

 

419,066

Other

10,079

 

13,560

Total other assets

1,073,195

 

1,119,845

Total assets

$4,106,187

 

$4,108,904

Current liabilities:

 

 

 

Current portion of long-term obligations

$7,535

 

$7,535

Accounts payable

213,776

 

298,375

Deferred revenue

67,412

 

73,370

Accrued expenses

293,200

 

276,540

Current portion of closure, post-closure and remedial liabilities

22,324

 

23,301

Current portion of operating lease liabilities

36,814

 

40,979

Total current liabilities

641,061

 

720,100

Other liabilities:

 

 

 

Closure and post-closure liabilities, less current portion

77,070

 

68,368

Remedial liabilities, less current portion

100,389

 

98,155

Long-term obligations, less current portion

1,550,756

 

1,554,116

Operating lease liabilities, less current portion

110,097

 

121,020

Deferred taxes, unrecognized tax benefits and other long-term liabilities

322,099

 

277,332

Total other liabilities

2,160,411

 

2,118,991

Total stockholders’ equity, net

1,304,715

 

1,269,813

Total liabilities and stockholders’ equity

$4,106,187

 

$4,108,904

 

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

For the Nine Months Ended:

 

September 30,
2020

 

September 30,
2019

Cash flows from operating activities:

 

 

Net income

$95,505

 

$73,589

Adjustments to reconcile net income to net cash from operating activities:

 

 

Depreciation and amortization

221,497

 

223,328

Allowance for doubtful accounts

10,441

 

(745)

Amortization of deferred financing costs and debt discount

2,688

 

2,908

Accretion of environmental liabilities

8,149

 

7,624

Changes in environmental liability estimates

9,050

 

(585)

Deferred income taxes

 

(973)

Other expense (income), net

597

 

(1,992)

Stock-based compensation

12,739

 

14,664

Loss on sale of businesses

3,376

 

Loss on early extinguishment of debt

 

6,119

Environmental expenditures

(8,816)

 

(12,804)

Changes in assets and liabilities, net of acquisitions:

 

 

Accounts receivable and unbilled accounts receivable

23,969

 

(31,408)

Inventories and supplies

(9,554)

 

(11,982)

Other current and non-current assets

(19,320)

 

(5,425)

Accounts payable

(63,898)

 

3,035

Other current and long-term liabilities

31,009

 

19,322

Net cash from operating activities

317,432

 

284,675

Cash flows used in investing activities:

 

 

Additions to property, plant and equipment

(150,357)

 

(174,533)

Proceeds from sale and disposal of fixed assets

7,307

 

8,948

Acquisitions, net of cash acquired

(8,839)

 

(29,479)

Proceeds from sale of businesses, net of transactional costs

7,712

 

Additions to intangible assets including costs to obtain or renew permits

(1,863)

 

(2,896)

Proceeds from sale of available-for-sale securities

39,141

 

41,612

Purchases of available-for-sale securities

(53,397)

 

(30,761)

Net cash used in investing activities

(160,296)

 

(187,109)

Cash flows used in financing activities:

 

 

Change in uncashed checks

381

 

(3,516)

Tax payments related to withholdings on vested restricted stock

(4,407)

 

(5,505)

Repurchases of common stock

(39,542)

 

(16,390)

Deferred financing costs paid

 

(10,053)

Premiums paid on early extinguishment of debt

 

(2,689)

Payments on finance leases

(2,755)

 

(327)

Principal payments on debt

(5,652)

 

(850,652)

Issuance of unsecured senior notes

 

845,000

Borrowing from revolving credit facility

150,000

 

Payment on revolving credit facility

(150,000)

 

Net cash used in financing activities

(51,975)

 

(44,132)

Effect of exchange rate change on cash

(1,446)

 

2,292

Increase in cash and cash equivalents

103,715

 

55,726

Cash and cash equivalents, beginning of period

371,991

 

226,507

Cash and cash equivalents, end of period

$475,706

 

$282,233

 

Supplemental information:

Cash payments for interest and income taxes:

Interest paid

$66,000

$52,440

Income taxes paid, net of refunds

14,195

23,797

Non-cash investing activities:

Property, plant and equipment accrued

11,732

14,875

ROU assets obtained in exchange for operating lease liabilities

19,993

8,008

ROU assets obtained in exchange for finance lease liabilities

28,333

31,011

Supplemental Segment Data (in thousands)

 

For the Three Months Ended:

Revenue

September 30, 2020

 

September 30, 2019

 

Third Party
Revenues

Intersegment
Revenues
(Expense),
net

Direct
Revenues

 

Third
Party
Revenues

Intersegment
Revenues
(Expense),
net

Direct
Revenues

Environmental Services

$498,183

$29,787

$527,970

 

$550,122

$36,750

$586,872

Safety-Kleen

281,089

(29,449)

251,640

 

341,417

(35,272)

306,145

Corporate Items

72

(338)

(266)

 

129

(1,478)

(1,349)

Total

$779,344

$—

$779,344

 

$891,668

$—

$891,668

 

 

For the Nine Months Ended:

Revenue

September 30, 2020

 

September 30, 2019

 

Third Party
Revenues

Intersegment
Revenues
(Expense),
net

Direct
Revenues

 

Third
Party
Revenues

Intersegment
Revenues
(Expense),
net

Direct
Revenues

Environmental Services

$1,490,641

$100,605

$1,591,246

 

$1,550,114

$108,856

$1,658,970

Safety-Kleen

857,048

(97,640)

759,408

 

990,146

(105,540)

884,606

Corporate Items

218

(2,965)

(2,747)

 

925

(3,316)

(2,391)

Total

$2,347,907

$—

$2,347,907

 

$2,541,185

$—

$2,541,185


Contacts

Michael L. Battles
EVP and Chief Financial Officer
Clean Harbors, Inc.
781.792.5100
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Jim Buckley
SVP Investor Relations
Clean Harbors, Inc.
781.792.5100
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Read full story here

OKLAHOMA CITY--(BUSINESS WIRE)--Enable Midstream Partners, LP (NYSE: ENBL) today published its inaugural sustainability report, highlighting the partnership’s dedication to increased transparency and continuous improvement.


“I am pleased to share Enable’s inaugural sustainability report,” said Rod Sailor, Enable’s president and CEO. “At Enable, our mission is to partner in the success of our employees, customers, investors and communities. In this report, you’ll find just some of the ways Enable has demonstrated and continues to uphold that partnership commitment while operating in a safe, efficient and reliable manner.”

Key highlights from the inaugural report include:

– Conservation efforts for vulnerable species

– Enable’s award-winning integrated vegetation management program along our rights of ways

– A pipeline inspection program that inspected almost twice the miles of pipelines in 2019 as required by current regulations

– A series of commitments intended to minimize methane emissions across Enable’s operations

– Responsible project development practices, which respect environmentally sensitive and culturally significant areas

– More than 22,000 employee volunteer hours, including 15,000 company-paid hours

– Community partnerships, including Enable’s Safety Partner Program honoring first responders, a program to build or refurbish community basketball courts and a program to support STEM-focused educational initiatives

– A comprehensive contractor safety initiative, which resulted in a reduction of reported contractor incidents from 22 in 2015 to 3 in 2019

An electronic version of the report is available at https://enablemidstream.com/sustainability. Enable’s inaugural sustainability report was prepared in accordance with the Sustainability Accounting Standards Board (SASB) Oil & Gas – Midstream Standard.

ABOUT ENABLE MIDSTREAM PARTNERS

Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 Bcf/d of natural gas processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50%), approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity. For more information, visit https://enablemidstream.com.


Contacts

Media
Leigh Ann Williams
(405) 553-6947

Investor
Matt Beasley
(405) 558-4600

HOUSTON--(BUSINESS WIRE)--Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) has selected Univation Technologies’ UNIPOL™ PE Process for a 480,000 TPY line to be built at the strategically located DRPIC Petrochemical Complex at Duqm on the Arabian Sea coast of Oman, approximately 600km south of Muscat. DRPIC is a joint venture between OQ S.A.O.C. and Kuwait Petroleum Europe B.V.


DRPIC will benefit from Univation’s conventional and advanced catalyst technology platforms which include Univation’s ACCLAIM™ HDPE Technology for the manufacture of high-performance unimodal HDPE resins. Univation’s broad product portfolio enables DRPIC with the necessary product flexibility required to satisfy a wide range of specialty as well as large volume applications covering both HDPE and LLDPE markets.

“We are extremely pleased that Duqm Refinery and Petrochemical Industries Company selected Univation’s UNIPOL™ PE Technology in conjunction with the achievement of significant project milestones by the Duqm Petrochemical Project in Oman – even in the midst of a highly challenging global environment,” stated Dr. Steven Stanley, President of Univation Technologies. Dr. Stanley added, “Univation continues to make significant investments in UNIPOL™ PE Technology to keep it at the forefront of the polyethylene industry. Our robust technology pipeline, combined with excellent economies-of-scale, world-class operational performance, and demonstrated product flexibility, make the UNIPOL™ PE Process best-in-class as a licensed PE technology platform. We are excited to work with DPRIC to deliver this full capability during the design, commissioning and start-up phases of this world-scale plant.”

Dr. Salim Al Huthaili, CEO of DRPIC, commented on the new project, “We value the collaborative relationship already established with Univation Technologies on this new project. Furthermore, we look forward to achieving our objective of becoming a significant player in the region by satisfying evolving customer demand in both domestic and key international markets. A key component of DRPIC realizing that strategy will be accessing the flexible production capabilities of our UNIPOL™ PE Process line. We look forward to our continued partnership with Univation’s technical teams as we progress towards a successful start-up and utilization of this new significant supply source to satisfy the growing global demand for polyethylene products.”

About Univation Technologies, LLC

Univation Technologies is the global leader in licensed polyethylene technology. Univation has a proven track record of delivering process, product and catalyst technologies as well as related technical services to the global polyethylene industry for more than 50 years. More than one-third of all HDPE and LLDPE resins produced globally is supplied by the industry-leading UNIPOL™ PE Process. Univation is also the world's leading manufacturer and supplier of conventional and advanced polyethylene polymerization catalysts designed specifically for the UNIPOL™ PE Process. For more information, visit www.univation.com.

UNIVATION, XCAT, PRODIGY, PREMIER, ACCLAIM, stylized “Univation Technologies,” and the stylized "U" are registered trademarks (Reg. U.S. Pat. and Tm. Off. and other countries) of Univation Technologies. UNIPOL is a trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow, licensed for use to Univation Technologies.

About the Duqm Petrochemicals Project

The Duqm Refinery and Petrochemicals Industries Company LLC. (Company) Duqm Petrochemical Project is a grassroot Petrochemical Complex at Duqm on the Arabian Sea coast of Oman, approximately 600km south of Muscat. The Petrochemical complex will take a combination of feedstock from existing gas fields remote from DUQM in conjunction with feedstock from the new Company Refinery being built adjacent to the petrochemical site at DUQM. The gas will be processed through an NGL extraction plant located at Saih Nihayda and is then transported to DUQM along a new 250 km pipeline. At the core of the complex is a Steam Cracker Unit (SCU) producing 1600 KTA of ethylene. Downstream of this are multiple licensed units processing C4s, and SynGas as feedstocks to Aromatics, OXO, EOEG and Plastics units. The various products are packaged within the complex and then either trucked or piped to a Marine Export facility at the new Liquid Loading jetty at DUQM. The new Petrochemical facilities will be integrated into the wider facilities being developed by SEZAD (Special Economic Zone Authority at DUQM).

About Duqm Refinery

Duqm Refinery and Petrochemical Industries Company LLC is a joint venture between OQ and Kuwait Petroleum Europe (KPE). The project is located in Duqm, Al-Wusta Governorate, on Sultanate of Oman's southeast coast. The project has a strategic location on the international trade route on the Arabian Sea and the Indian Ocean. By its location on the international trade route, Duqm Refinery will link international markets in the East and West through providing faster access to energy products for global markets, thereby increasing their economic viability.

With a view to establishing a world-class fuel refinery, Duqm Refinery aims to be a catalyst for economic growth and effectively contribute to the prosperity and wealth of the Sultanate in the future.

On completion of the Duqm Refinery project, its refining capacity will reach 230,000 barrels per day for various types of crude oil, with diesel, jet fuel, naphtha and liquefied petroleum gas (LPG) being the main products of the refinery. With its vital location in the Duqm Special Economic Zone, the Duqm Refinery will serve as a key driver for the growth of the region through providing investment opportunities for new projects in the region, which will directly and indirectly interfere with the refinery's operations. Duqm Refinery celebrated the laying of the foundation stone in 2019 and the commencement of construction work for the project, which has already started and in progress.


Contacts

Univation Technologies, LLC
Duane Thompson
+1-713-892-3668
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Duqm Refinery and Petrochemical Industries Company LLC
Ali Al Asmi – Corporate Communication
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LONDON--(BUSINESS WIRE)--#AutomatedContainerTerminalMarket--The new automated container terminal market research from Technavio indicates Neutral growth in the short term as the business impact of COVID-19 spreads.



Get detailed insights on the COVID-19 pandemic Crisis and Recovery analysis of the automated container terminal market. Download free report sample

"One of the primary growth drivers for this market is the growing adoption of automated container terminals in emerging economies,” says a senior analyst for Industrials at Technavio.

The growing adoption of automated container terminals in emerging economies is one of the key factors driving the market growth. With the rising number of emerging economies, including Brazil, India, and China contributing to the global seaborne trade, the modernization of container terminals has also increased significantly in recent years. For instance, the Qingdao New Qianwan Container Terminal in China became Asia’s first fully automated port terminal. Furthermore, the terminal was automated as a part of China’s ‘Belt and Road Initiative,’ which aims at improving Eurasian Trade through the Maritime Silk Road (MSR) channel. Consequently, with rising investments in infrastructure development across Asia, Europe, and South America, the automated container terminal industry demand will increase considerably. With the growing automation of container terminals in the emerging economies, the growth of the automated container terminal market is likely to accelerate during the forecast period.

As the markets recover Technavio expects the automated container terminal market size to grow by USD 1.04 billion during the period 2020-2024.

Automated Container Terminal Market Segment Highlights for 2020

  • The automated container terminal market is expected to post a year-over-year growth rate of 1.06%.
  • The automated container terminal market by equipment is driven primarily by the need for ship-to-shore cranes arising from the changes in the requirements in container terminal operations after the introduction of mega-ships.
  • These mega-ships have a cargo capacity of over 18,000 TEUs and are significantly larger than the traditional 14,000-TEU capacity vessels. As a result, there has been a growing demand for cranes that can rise over up to 50 meters in height to meet the requirements of the mega-ships.
  • Automated ship-to-shore cranes reduce the dwell times and boost terminal productivity in quayside operations significantly.

Regional Analysis

  • 72% of the growth will originate from the APAC region.
  • Factors such as rapid growth in economies will significantly drive the automated container terminal market growth in this region over the forecast period.
  • China and India are the key markets for automated container terminals in APAC. Market growth in this region will be faster than the growth of the market in Europe and MEA.

Click here to learn about report detailed analysis and insights on how you can leverage them to grow your business.

Notes:

  • The automated container terminal market size is expected to accelerate at a CAGR of over 2% during the forecast period.
  • The automated container terminal market is segmented by Product (Equipment and Software) and Geography (APAC, Europe, North America, South America, and MEA).
  • The market is concentrated due to the presence of few established vendors holding significant market share.
  • The research report offers information on several market vendors, including ABB Ltd., Camco Technologies, Cargotec Corp., CyberLogitec Co. Ltd., Identec Group AG, Konecranes Plc, Künz GmbH, Liebherr-International AG, ORBCOMM Inc., and Shanghai Zhenhua Heavy Industries Co. Ltd.

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DUBLIN--(BUSINESS WIRE)--The "Oil Refining Industry in The United Arab Emirates 2020" report has been added to ResearchAndMarkets.com's offering.


The downstream energy sector report, "Oil Refining Industry in United Arab Emirates" is a complete source of information on United Arab Emirates crude oil refining industry.

It provides refinery level information relating to existing and planned (new build) refineries such as insights and forecasts of refinery capacities, refined petroleum products production and consumption, refinery complexity factor and comparison against peer group countries in the respective region. The report also covers complete details of major players operating in the refining sector in United Arab Emirates and in depth analysis of the latest industry news and deals.

Report Scope

  • Outlook of Country Oil Refining Industry and refined petroleum products beyond 2020
  • Forecasts of refined products production and consumption along with major refining companies and operators.
  • Historic and Forecasted Refining capacity and secondary units capacities beyond 2020
  • Key Opportunities and Restraints in country Refinery market
  • Benchmark with five peer group countries on Nelson Complexity Factor.
  • Market structure of Country Refining Industry, companies, capacities and market share.
  • Information on planned refineries such as planned capacity, equity structure, Operator Company, expected commissioning date and project cost.
  • Refined petroleum products production and demand beyond 2020.
  • Refinery level information such as refinery name, commissioned year, primary and secondary units installed capacities along with future capacity expansions, refinery complexity factor, ownership and operator details.
  • Company profiles of major refining companies including SWOT Analysis.
  • Latest mergers, acquisitions, contract announcements and all related industry news and deals analysis.

Key Topics Covered:

1 Table of Contents

1.1 List of Figures

1.2 List of Tables

2 Introduction to United Arab Emirates Refining Markets

2.1 What is This Report About?

2.2 Market Definition

3 Refining Industry in United Arab Emirates

3.1 United Arab Emirates Refining Market Snapshot, 2019

3.2 Role of United Arab Emirates in Global and Regional Refining Markets

3.2.1 Contribution to Middle East and Africa and Global Refining Capacity, 2019

3.2.2 United Arab Emirates Average Nelson Complexity Factor (NCF) vs. Middle East and Africa and Global, 2019

4 United Arab Emirates Refining Market- Drivers and Restraints

4.1 United Arab Emirates Refining Industry: Trends and Issues

4.1.1 United Arab Emirates Refining Industry: Major Trends

4.2 Major Restrains of Investing in United Arab Emirates Refining Sector

5 United Arab Emirates Oil Products Demand and Supply Forecast to 2025

5.1 United Arab Emirates Refined Products Demand Forecast to 2025

5.1.1 United Arab Emirates Gasoline Demand Forecast to 2025

5.1.2 United Arab Emirates Diesel Oil Demand Forecast to 2025

5.1.3 United Arab Emirates Kerosene Demand Forecast to 2025

5.1.4 United Arab Emirates LPG Demand Forecast to 2025

5.2 United Arab Emirates Refined Products Production Forecast to 2025

5.2.1 United Arab Emirates Gasoline Production Forecast to 2025

5.2.2 United Arab Emirates Diesel Oil Production Forecast to 2025

5.2.3 United Arab Emirates Kerosene Production Forecast to 2025

5.2.4 United Arab Emirates LPG Production Forecast to 2025

6 United Arab Emirates Refinery Capacities Forecast to 2025

6.1 Location, Operator, Ownership, Startup Details of Operational Refineries in United Arab Emirates

6.1.1 Refinery Location, Operator, Ownership, Startup Details

6.2 United Arab Emirates Total Refining Capacity Historic and Forecast, 2012-2025

6.3 United Arab Emirates Refining Capacity Historic and Forecast, 2012-2025

6.4 United Arab Emirates Refinery wise Secondary Conversion Unit-1 Capacity, 2012-2025

6.5 United Arab Emirates Refinery wise Secondary Conversion Unit-2 Capacity, 2012-2025

6.6 United Arab Emirates Refinery wise Secondary Conversion Unit-3 Capacity, 2012-2025

7 United Arab Emirates Refining Industry- Future Developments and Investment Opportunities

7.1 Capital Investment Details of All Upcoming Refineries

7.2 Location, Operator, Ownership, Start Up Details of Planned Refineries in United Arab Emirates

7.2.1 Refinery Location, Operator, Ownership, Startup Details

7.3 Refinery Capacities of All Upcoming Refineries

8 Key Strategies United Arab Emirates Refining Companies

8.1 United Arab Emirates Company wise Refining Capacity Forecast, 2012-2025

9 Abu Dhabi National Oil Company Company Profile

9.1 Abu Dhabi National Oil Company Key Information

9.2 Abu Dhabi National Oil Company Company Overview

9.3 Abu Dhabi National Oil Company Business Description

9.4 Abu Dhabi National Oil Company SWOT Analysis

9.4.1 Overview

9.4.2 Strengths

9.4.3 Weaknesses

9.4.4 Opportunities

9.4.5 Threats

9.5 Abu Dhabi National Oil Company Financial Ratios - Capital Market Ratios

9.6 Abu Dhabi National Oil Company Financial Ratios - Annual Ratios

9.7 Abu Dhabi National Oil Company Financial Ratios - Interim Ratios

10 United Arab Emirates Refining Industry Latest Tenders and Contracts

11 United Arab Emirates Refining Industry Updates

12 United Arab Emirates Refining Industry Deals

For more information about this report visit https://www.researchandmarkets.com/r/if1bhq


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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  • On track to achieve the capital and cost reductions announced earlier this year
  • All wells that were shut-in due to depressed commodity prices have been brought back online
  • Recontracted approximately 190,000 dekatherms per day (Dth/d) of transportation capacity during the quarter, bringing total transportation recontracting for 2020 to nearly 1,450,000 Dth/d
  • Recently received the Federal Energy Regulatory Commission’s (FERC) Environmental Assessment for the Gulf Run Pipeline, a key milestone for the project
  • Released Enable’s inaugural sustainability report, highlighting the partnership’s commitment to transparency and sustainable business practices
  • Declared a quarterly cash distribution of $0.16525 per unit on all outstanding common units and $0.625 on all outstanding Series A Preferred Units

OKLAHOMA CITY--(BUSINESS WIRE)--Enable Midstream Partners, LP (NYSE: ENBL) today announced financial and operating results for third quarter 2020.


Net loss attributable to limited partners was $164 million for third quarter 2020, a decrease of $296 million compared to $132 million of net income for third quarter 2019. Net loss attributable to common units was $173 million for third quarter 2020, a decrease of $296 million compared to $123 million of net income for third quarter 2019. Enable’s net loss for third quarter 2020 was due to a $225 million non-cash other than temporary impairment on its investment in Southeast Supply Header, LLC. Net cash provided by operating activities was $232 million for third quarter 2020, a decrease of $32 million compared to $264 million for third quarter 2019. Adjusted EBITDA was $229 million for third quarter 2020, a decrease of $66 million compared to $295 million for third quarter 2019. Distributable cash flow (DCF) was $147 million for third quarter 2020, a decrease of $55 million compared to $202 million for third quarter 2019.

For third quarter 2020, DCF exceeded declared distributions to common unitholders by $75 million, resulting in a distribution coverage ratio of 2.04x.

For additional information regarding the non-GAAP financial measures Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio, please see “Non-GAAP Financial Measures.”

MANAGEMENT PERSPECTIVE

“We continue to focus on what we can control, optimizing our capital deployment, providing safe and reliable operations and implementing cost reductions while directing excess cash flow to reducing debt,” said Rod Sailor, president and CEO. “I am very proud of our employees for providing a high level of service during these challenging times.

“In addition, we continue to deliver on other important initiatives such as our recently released inaugural sustainability report. Sustainable business practices are deeply embedded across our business, and this report provides our stakeholders with a transparent view of our progress and initiatives.”

BUSINESS HIGHLIGHTS

Enable’s inaugural sustainability report marks an important step in the partnership’s sustainability journey. The report focuses on environmental, social and governance issues and is aligned with the voluntary Sustainability Accounting Standards Board (SASB) reporting standards for midstream companies, allowing for better comparisons of Enable’s sustainability performance. The report is available on the partnership’s website at https://enablemidstream.com/sustainability.

As of Sept. 1, 2020, all wells that were shut-in due to depressed commodity prices have been brought back online, and Enable has not experienced any noticeable production performance degradation from these wells. As of Oct. 28, 2020, there were six rigs across Enable’s footprint that were drilling wells expected to be connected to Enable’s gathering systems. Three of those rigs were in the Anadarko Basin, and three were in the Ark-La-Tex Basin.

Enable remains focused on contracting firm, fee-based transportation capacity. Through Sept. 30, 2020, Enable has contracted nearly 1,450,000 Dth/d of firm transportation capacity at an average volume-weighted contract life of over five years. During third quarter 2020, Enable contracted or extended approximately 190,000 Dth/d of firm transportation capacity.

On Oct. 29, 2020, FERC issued an Environmental Assessment for the Gulf Run Pipeline project. The deadline for other federal agencies to provide authorization for the project is Jan. 27, 2021. Backed by a 20-year commitment for 1.1 billion cubic feet per day (Bcf/d) from cornerstone shipper Golden Pass LNG, the project is proceeding on schedule and is expected to be placed into service in late 2022, subject to FERC approval. While the currently filed project scope provides for capacity in excess of Golden Pass’s firm commitment, Enable continues to review the scope in light of current contracting levels, commercial dialogue and construction costs.

Underpinned by a firm, five-year commitment, Enable Gas Transmission, LLC’s MASS project is designed to deliver gas from the Anadarko and Arkoma Basins to delivery points with access to emerging Gulf Coast markets and growing demand markets in the Southeast. Project construction recently began following the receipt of all regulatory approvals, and the project is expected to be placed into service during second quarter 2021.

QUARTERLY DISTRIBUTIONS

On Nov. 3, 2020, the board of directors of Enable’s general partner declared a quarterly cash distribution of $0.16525 per unit on all outstanding common units for the quarter ended Sept. 30, 2020. The distribution is unchanged from the previous quarter and represents Enable’s 26th consecutive quarterly distribution since the partnership’s initial public offering in April 2014. The quarterly cash distribution of $0.16525 per unit on all outstanding common units will be paid Nov. 24, 2020, to unitholders of record at the close of business Nov. 17, 2020.

The board declared a quarterly cash distribution of $0.625 per unit on all outstanding Series A Preferred Units for the quarter ended Sept. 30, 2020. The quarterly cash distribution of $0.625 per unit on all outstanding Series A Preferred Units will be paid Nov. 13, 2020, to unitholders of record at the close of business Nov. 3, 2020.

KEY OPERATING STATISTICS

Natural gas gathered volumes were 4.07 trillion British thermal units per day (TBtu/d) for third quarter 2020, a decrease of 9% compared to 4.47 TBtu/d for third quarter 2019. The decrease was primarily a result of lower production activity across all basins, inclusive of continued producer shut-ins in the Anadarko Basin that ended during third quarter 2020.

Natural gas processed volumes were 2.06 TBtu/d for third quarter 2020, a decrease of 17% compared to 2.49 TBtu/d for third quarter 2019. The decrease was due to lower processed volumes across all basins.

Crude oil and condensate gathered volumes were 138.02 thousand barrels per day (MBbl/d) for third quarter 2020, an increase of 4% compared to 132.99 MBbl/d for third quarter 2019. The increase was primarily due to an increase in crude oil and condensate gathered volumes in the Anadarko Basin, partially offset by a decrease in crude oil gathered volumes in the Williston Basin.

Transported natural gas volumes were 4.78 TBtu/d for third quarter 2020, a decrease of 20% compared to 5.97 TBtu/d for third quarter 2019. The decrease was primarily due to decreased production in the Anadarko Basin, which contributed to lower utilization of Enable’s interstate and intrastate pipelines.

Interstate transportation firm contracted capacity was 5.73 Bcf/d for third quarter 2020, a decrease of 5% compared to 6.02 Bcf/d for third quarter 2019. The decrease was primarily related to contract expirations, including lower recontracted capacity on the Enable Mississippi River Transmission, LLC (MRT) system.

Intrastate transportation average deliveries were 1.74 TBtu/d for third quarter 2020, a decrease of 17% compared to 2.10 TBtu/d for third quarter 2019. The decrease was primarily due to decreased production activity in the Anadarko Basin, including continued producer shut-ins that ended during third quarter 2020.

THIRD QUARTER FINANCIAL PERFORMANCE

Revenues were $596 million for third quarter 2020, a decrease of $103 million compared to $699 million for third quarter 2019. Revenues are net of $72 million of intercompany eliminations for third quarter 2020 and $77 million of intercompany eliminations for third quarter 2019.

Gathering and processing segment revenues were $463 million for third quarter 2020, a decrease of $79 million compared to $542 million for third quarter 2019. The decrease in gathering and processing segment revenues was primarily due to:

  • a decrease in natural gas gathering revenues due to lower gathered volumes, inclusive of continued producer shut-ins in the Anadarko Basin that ended during the third quarter, lower shortfall fees associated with the expiration of certain minimum volume commitment contracts in the Ark-La-Tex Basin and lower revenue associated with the third quarter 2019 amendment of certain minimum volume commitment contracts in the Arkoma Basin,
  • a decrease in changes in the fair value of natural gas, condensate and NGL derivatives,
  • a decrease in revenues from natural gas sales due to lower sales volumes, partially offset by higher average sales prices,
  • a decrease in processing service revenues due to lower processed volumes under fee-based arrangements, partially offset by higher consideration received from percent-of-proceeds, percent-of-liquids and keep-whole processing arrangements due to an increase in retained volumes at higher average market prices as well as an increase in the recognition of certain annual minimum processing fees,
  • a decrease in realized gains on natural gas, condensate and NGL derivatives and
  • a decrease in intercompany management fees.

These decreases were partially offset by:

  • an increase in revenues from natural gas liquids (NGL) sales primarily due to an increase in the average realized sales price from higher average market prices for all NGL products other than natural gasoline and higher recoveries of ethane in the Anadarko Basin, partially offset by lower sales in the Arkoma and Ark-La-Tex Basin primarily due to lower processed volumes and
  • an increase in crude oil, condensate and produced water gathering revenues primarily due to an increase in gathered crude oil volumes in the Anadarko Basin, partially offset by a decrease in gathered crude oil volumes in the Williston Basin.

Transportation and storage segment revenues were $205 million for third quarter 2020, a decrease of $29 million compared to $234 million for third quarter 2019. The decrease in transportation and storage segment revenues was primarily due to:

  • a decrease in revenues from natural gas sales primarily due to lower sales volumes, partially offset by higher average sales prices,
  • a decrease in volume-dependent transportation and storage revenues due to lower off-system intrastate transportation rates and lower transported volumes due to decreased production activity in the Anadarko Basin,
  • a decrease in revenues from NGL sales due to lower average sales prices and lower volumes and
  • a decrease in firm transportation and storage services due to lower interstate contracted capacity, partially offset by higher recognized rates subsequent to the settlement of the MRT rate case.

These decreases were partially offset by realized gains on natural gas derivatives.

Gross margin was $346 million for third quarter 2020, a decrease of $90 million compared to $436 million for third quarter 2019.

Gathering and processing segment gross margin was $219 million for third quarter 2020, a decrease of $85 million compared to $304 million for third quarter 2019. The decrease in gathering and processing segment gross margin was primarily due to:

  • a decrease in natural gas gathering fees due to lower gathered volumes, inclusive of continued producer shut-ins in the Anadarko Basin that ended during the third quarter, lower shortfall fees associated with the expiration of certain minimum volume commitment contracts in the Ark-La-Tex Basin and lower revenue associated with the third quarter 2019 amendment of certain minimum volume commitment contracts in the Arkoma Basin,
  • a decrease in revenues from natural gas sales due to lower sales volumes, partially offset by higher average sales prices,
  • a decrease in changes in the fair value of natural gas, condensate and NGL derivatives,
  • a decrease in realized gains on natural gas, condensate and NGL derivatives and
  • a decrease in processing service revenues.

These decreases were partially offset by:

  • an increase in revenues from NGL sales due to higher average sales prices for all NGL products other than natural gasoline and
  • an increase in crude oil, condensate and produced water gathering revenues primarily due to an increase in gathered crude oil volumes in the Anadarko Basin, partially offset by a decrease in gathered crude oil volumes in the Williston Basin.

Transportation and storage segment gross margin was $127 million for third quarter 2020, a decrease of $5 million compared to $132 million for third quarter 2019. The decrease in transportation and storage segment gross margin was primarily due to:

  • a decrease in volume-dependent transportation and storage revenues due to lower off-system intrastate transportation rates and lower transported volumes due to decreased production activity in the Anadarko Basin,
  • a decrease in firm transportation and storage services due to lower interstate contracted capacity, partially offset by higher recognized rates subsequent to the settlement of the MRT rate case and
  • a decrease due to incremental lower of cost or net realizable value adjustments related to natural gas storage inventories.

These decreases were partially offset by an increase in system management activities and an increase in realized gains on natural gas derivatives.

Operation and maintenance and general and administrative expenses were $124 million for third quarter 2020, a decrease of $12 million compared to $136 million for third quarter 2019. The decrease in operation and maintenance and general and administrative expenses was primarily due to a decrease related to claims settlement costs in the prior year with no comparable activity in the current year, a decrease due to a reduction in the estimated retirement loss previously recognized in 2019 related to a physical property loss, a decrease in compressor rentals, a decrease in professional services due to higher rate case costs in the prior year and a decrease in payroll-related costs. These decreases were partially offset by an increase in materials and supplies and outside services due to pipeline safety and storage integrity work under our pipeline safety program and to comply with certain PHMSA regulations as well as the timing of routine operation and maintenance activities and an increase due to lower capitalized overhead costs.

Depreciation and amortization expense was $105 million for third quarter 2020, a decrease of $3 million compared to $108 million for third quarter 2019. The decrease in depreciation and amortization expense was primarily related to new depreciation rates implemented in the prior year, which resulted in higher depreciation expense in 2019 for certain assets with shorter remaining useful lives, as compared to 2020, partially offset by additional assets placed in service.

Interest expense was $43 million for third quarter 2020, a decrease of $5 million compared to $48 million for third quarter 2019. The decrease was primarily due to lower interest rates on the partnership’s short-term borrowings.

Capital expenditures were $50 million for third quarter 2020, compared to $101 million for third quarter 2019. Expansion capital expenditures were $19 million for third quarter 2020, compared to $65 million for third quarter 2019. Maintenance capital expenditures were $31 million for third quarter 2020, compared to $36 million for third quarter 2019.

2020 OUTLOOK

As compared to the 2020 outlook presented in its first quarter 2020 financial results press release dated May 6, 2020, Enable anticipates performing below the projected range for net income attributable to common units due to the non-cash impairment of equity method affiliates in third quarter 2020 and in the upper half of the projected ranges for Adjusted EBITDA and DCF. Excluding the third quarter 2020 non-cash impairment of equity method affiliates, Enable would have anticipated performing in the upper half of the first quarter’s anticipated range for net income attributable to common units.

EARNINGS CONFERENCE CALL AND WEBCAST

A conference call discussing third quarter results is scheduled today at 10 a.m. EST (9 a.m. CST). The toll-free dial-in number to access the conference call is 833-968-1938, and the international dial-in number is 778-560-2726. The conference call ID is 8109667. Investors may also listen to the call via Enable’s website at https://investors.enablemidstream.com. Replays of the conference call will be available on Enable’s website.

AVAILABLE INFORMATION

Enable files annual, quarterly and other reports and other information with the U.S. Securities and Exchange Commission (SEC). Enable’s SEC filings are also available at the SEC’s website at https://www.sec.gov which contains information regarding issuers that file electronically with the SEC. Information about Enable may also be obtained at the offices of the NYSE, 20 Broad Street, New York, New York 10005, or on Enable’s website at https://enablemidstream.com. On the Investor Relations section of Enable’s website, https://investors.enablemidstream.com, Enable makes available free of charge a variety of information to investors. Enable’s goal is to maintain the Investor Relations section of its website as a portal through which investors can easily find or navigate to pertinent information about Enable, including but not limited to:

  • Enable’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after Enable electronically files that material with or furnishes it to the SEC;
  • press releases on quarterly distributions, quarterly earnings and other developments;
  • governance information, including Enable’s governance guidelines, committee charters and code of ethics and business conduct;
  • information on events and presentations, including an archive of available calls, webcasts and presentations;
  • news and other announcements that Enable may post from time to time that investors may find useful or interesting; and
  • opportunities to sign up for email alerts and RSS feeds to have information pushed in real time.

ABOUT ENABLE MIDSTREAM PARTNERS

Enable owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable’s assets include approximately 14,000 miles of natural gas, crude oil, condensate and produced water gathering pipelines, approximately 2.6 Bcf/d of natural gas processing capacity, approximately 7,800 miles of interstate pipelines (including Southeast Supply Header, LLC of which Enable owns 50%), approximately 2,200 miles of intrastate pipelines and seven natural gas storage facilities comprising 84.5 billion cubic feet of storage capacity. For more information, visit https://enablemidstream.com.

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Enable’s distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Enable’s distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate. Brokers and nominees, and not Enable, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

NON-GAAP FINANCIAL MEASURES

Enable has included the non-GAAP financial measures Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio in this press release based on information in its consolidated financial statements.

Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio are supplemental financial measures that management and external users of Enable’s financial statements, such as industry analysts, investors, lenders and rating agencies may use, to assess:

  • Enable’s operating performance as compared to those of other publicly traded partnerships in the midstream energy industry, without regard to capital structure or historical cost basis;
  • The ability of Enable’s assets to generate sufficient cash flow to make distributions to its partners;
  • Enable’s ability to incur and service debt and fund capital expenditures; and
  • The viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

This press release includes a reconciliation of Gross margin to total revenues, Adjusted EBITDA and DCF to net income attributable to limited partners, Adjusted EBITDA to net cash provided by operating activities and Adjusted interest expense to interest expense, the most directly comparable GAAP financial measures as applicable, for each of the periods indicated. Distribution coverage ratio is a financial performance measure used by management to reflect the relationship between Enable’s financial operating performance and cash distributions. Enable believes that the presentation of Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio provides information useful to investors in assessing its financial condition and results of operations. Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio should not be considered as alternatives to net income, operating income, total revenue, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP measures. Additionally, because Gross margin, Adjusted EBITDA, DCF, Adjusted interest expense and distribution coverage ratio may be defined differently by other companies in Enable’s industry, its definitions of these measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

FORWARD-LOOKING STATEMENTS

Some of the information in this press release may contain forward-looking statements. Forward-looking statements give our current expectations and contain projections of results of operations or of financial condition, or forecasts of future events. Words such as “could,” “will,” “should,” “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include our expectations of plans, strategies, objectives, growth and anticipated financial and operational performance, including our 2020 outlook presented in our first quarter 2020 financial results press release dated May 6, 2020, as updated by this press release.


Contacts

Media
Leigh Ann Williams
(405) 553-6947

Investor
Matt Beasley
(405) 558-4600


Read full story here

SEATTLE--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NASDAQ: EXPD), today announced that on November 2, 2020, its Board of Directors declared a semi-annual cash dividend of $0.52 per share, payable on December 15, 2020 to shareholders of record as of December 1, 2020.

Expeditors is a global logistics company headquartered in Seattle, Washington. The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.


Contacts

Expeditors International of Washington, Inc.
Jeffrey S. Musser
President and Chief Executive Officer
(206) 674-3433

Bradley S. Powell
Senior Vice President and Chief Financial Officer
(206) 674-3412

Geoffrey Buscher
Director - Investor Relations
(206) 892-4510

  • Reported net income attributable to HEP of $17.8 million or $0.17 per unit
  • Announced quarterly distribution of $0.35 per unit
  • Reported EBITDA of $55.3 million and Adjusted EBITDA of $86.4 million

DALLAS--(BUSINESS WIRE)--Holly Energy Partners, L.P. (“HEP” or the “Partnership”) (NYSE:HEP) today reported financial results for the third quarter of 2020. Net income attributable to HEP for the third quarter was $17.8 million ($0.17 per basic and diluted limited partner unit), compared to $82.3 million ($0.78 per basic and diluted limited partner unit) for the third quarter of 2019.


The third quarter results reflect special items that collectively decreased net income attributable to HEP by a total of $29.6 million. These items include a goodwill impairment charge of $35.7 million related to our Cheyenne business unit and a $6.1 million gain related to HEP's pro-rata share of a business interruption insurance claim settlement resulting from a loss at HollyFrontier's Woods Cross Refinery. In addition, net income attributable to HEP for the third quarter of 2019 included a gain on sales-type leases of $35.2 million. Excluding these items, net income attributable to HEP for the third quarter of 2020 was $47.4 million ($0.45 per basic and diluted limited partner unit) compared to net income attributable to HEP for the third quarter of 2019 of $47.2 million ($0.45 per basis can diluted limited partner unit).

Distributable cash flow was $76.9 million for the quarter, an increase of $8.1 million, or 11.7% compared to the third quarter of 2019, which was largely attributable to the Woods Cross Refinery business interruption claim. HEP declared a quarterly cash distribution of $0.35 per unit on October 22, 2020.

Commenting on our 2020 third quarter results, Michael Jennings, Chief Executive Officer, stated, "HEP generated solid results in the quarter, supported by minimum volume commitment contracts across our asset base and strong third-party crude volumes."

“We announced a distribution of $0.35 per unit and used excess cash to reduce leverage by continuing to pay down our revolving credit facility. Looking forward, we believe we are well positioned to deliver strong earnings and remain committed to deleveraging and returning cash to our unitholders."

Project Updates

Cheyenne Conversion

As a result of HollyFrontier Corporation’s ("HollyFrontier") previously announced conversion of its Cheyenne Refinery to renewable diesel production, HEP and HollyFrontier have reached an agreement in principle to terminate the existing minimum volume commitments for HEP's Cheyenne assets and enter into new agreements on the following terms, in each case effective January 1, 2021: (1) a ten-year lease with two five-year renewal option periods for HollyFrontier's use of certain HEP tank and rack assets in the Cheyenne Refinery to facilitate renewable diesel production with an annual lease payment of approximately $5 million, (2) a five-year contango service fee arrangement that will utilize HEP tank assets inside the Cheyenne Refinery where HollyFrontier will pay a base tariff to HEP for available crude oil storage and HollyFrontier and HEP will split any profits generated on crude oil contango opportunities, and (3) a $10 million one-time cash payment from HollyFrontier to HEP for the termination of the existing minimum volume commitment.

Frontier Aspen Pipeline Expansion

HEP successfully completed its binding open season for the expansion of the Frontier Aspen Pipeline. HEP expects to invest approximately $7 million in additional tankage, which will allow the transportation of an additional 10,000 barrels per day of crude oil on the Frontier Aspen Pipeline. The expansion is expected to be completed in the third quarter of 2021. Incremental shipments on the Frontier Aspen Pipeline are also expected to provide additional earnings potential for HEP’s SLC Pipeline.

Navajo Tanks Growth Project

HEP will build and operate four new refined product tanks with a total shell capacity of 200,000 barrels at HollyFrontier’s Navajo refinery in Artesia, New Mexico. The estimated cost of the project is $7.5 million, and it is expected to be in service in the third quarter of 2021. HollyFrontier and HEP have reached an agreement in principle for HollyFrontier to enter into a fifteen-year minimum volume commitment contract with HEP, and HollyFrontier has the option to extend for an additional five years. This additional tankage will help HollyFrontier optimize refined product deliveries out of its Navajo refinery.

Impact of COVID-19 on Our Business

Our business depends in large part on the demand for the various petroleum products we transport, terminal and store in the markets we serve. The COVID-19 pandemic has created destruction of demand, as well as lack of forward visibility, for refined products and crude oil transportation, and for the terminalling and storage services that we provide. Over the course of the third quarter, demand for transportation fuels showed incremental improvement over the second quarter of 2020. We expect our customers will continue to adjust refinery production levels commensurate with market demand and ultimately expect demand to return to pre-COVID-19 levels. For additional details of the impact of COVID-19 on our business, please see our Form 10-Q for the quarter ended September 30, 2020.

Third Quarter 2020 Revenue Highlights

Revenues for the third quarter were $127.7 million, a decrease of $8.2 million compared to the third quarter of 2019. The decrease was mainly due to a 13% reduction in overall crude and product pipeline volumes predominantly in our Southwest region.

  • Revenues from our refined product pipelines were $28.4 million, a decrease of $4.2 million compared to the third quarter of 2019. Shipments averaged 179.6 thousand barrels per day ("mbpd") compared to 197.1 mbpd for the third quarter of 2019. The volume and revenue decreases were mainly due to lower volumes on pipelines servicing HFC's Navajo refinery and Delek's Big Spring refinery largely as a result of demand destruction associated with the COVID-19 pandemic as well as the recording of certain pipeline tariffs as interest income as the related throughput contract renewals were determined to be sales-type leases.
  • Revenues from our intermediate pipelines were $7.5 million, consistent with the third quarter of 2019. Shipments averaged 142.8 mbpd for the third quarter of 2020 compared to 153.5 mbpd for the third quarter of 2019. The decrease in volumes was mainly due to lower throughputs on our intermediate pipelines servicing HFC's Navajo refinery while revenue remained relatively constant mainly due to contractual minimum volume guarantees.
  • Revenues from our crude pipelines were $32.3 million, a decrease of $0.7 million compared to the third quarter of 2019, and shipments averaged 404.3 mbpd compared to 488.1 mbpd for the third quarter of 2019. The decreases were mainly attributable to decreased volumes on our crude pipeline systems in New Mexico and Texas partially offset by increased volumes on our crude pipeline systems in Utah. Revenues did not decrease in proportion to the decrease in volumes mainly due to contractual minimum volume guarantees.
  • Revenues from terminal, tankage and loading rack fees were $39.0 million, a decrease of $3.4 million compared to the third quarter of 2019. Refined products and crude oil terminalled in the facilities averaged 459.3 mbpd compared to 541.6 mbpd for the third quarter of 2019. The volume and revenue decreases were mainly as a result of demand destruction associated with the COVID-19 pandemic across most of our facilities. Revenues did not decrease in proportion to the decrease in volumes mainly due to contractual minimum volume guarantees.
  • Revenues from refinery processing units were $20.4 million, an increase of $0.1 million compared to the third quarter of 2019, and throughputs averaged 62.0 mbpd compared to 75.9 mbpd for the third quarter of 2019. The decrease in volumes was mainly due to reduced throughput for our El Dorado processing units largely as a result of demand destruction associated with the COVID-19 pandemic while revenue remained relatively constant mainly due to contractual minimum volume guarantees.

Nine Months Ended September 30, 2020 Revenue Highlights

Revenues for the nine months ended September 30, 2020, were $370.4 million, a decrease of $30.8 million compared to the nine months ended September 30, 2019. The decrease was mainly attributable to a 19% reduction in overall crude and product pipeline volumes predominantly in our Southwest and Rockies regions.

  • Revenues from our refined product pipelines were $88.4 million, a decrease of $13.2 million compared to the nine months ended September 30, 2019. Shipments averaged 172.6 mbpd compared to 202.2 mbpd for the nine months ended September 30, 2019. The volume and revenue decreases were mainly due to lower volumes on pipelines servicing HFC's Navajo refinery, Delek's Big Spring refinery and our UNEV pipeline largely as a result of demand destruction associated with the COVID-19 pandemic as well as the recording of certain pipeline tariffs as interest income as the related throughput contract renewals were determined to be sales-type leases.
  • Revenues from our intermediate pipelines were $22.5 million, an increase of $0.4 million compared to the nine months ended September 30, 2019. Shipments averaged 137.8 mbpd compared to 142.0 mbpd for the nine months ended September 30, 2019.
  • Revenues from our crude pipelines were $86.9 million, a decrease of $10.0 million compared to the nine months ended September 30, 2019. Shipments averaged 380.1 mbpd compared to 508.6 mbpd for the nine months ended September 30, 2019. The decreases were mainly attributable to decreased volumes on our crude pipeline systems in New Mexico and Texas and on our crude pipeline systems in Wyoming and Utah largely as a result of demand destruction associated with the COVID-19 pandemic.
  • Revenues from terminal, tankage and loading rack fees were $112.8 million, a decrease of $6.3 million compared to the nine months ended September 30, 2019. Refined products and crude oil terminalled in the facilities averaged 451.0 mbpd compared to 492.1 mbpd for the nine months ended September 30, 2019. The volume and revenue decreases were mainly as a result of demand destruction associated with the COVID-19 pandemic across most of our facilities.
  • Revenues from refinery processing units were $59.9 million, a decrease of $1.6 million compared to the nine months ended September 30, 2019. Throughputs averaged 60.6 mbpd compared to 73.2 mbpd for the nine months ended September 30, 2019. The decrease in volumes was mainly due to reduced throughput for both our Woods Cross and El Dorado processing units largely as a result of demand destruction associated with the COVID-19 pandemic. Revenues were higher in the nine months ended September 30, 2019 due to an adjustment in revenue recognition recorded during that period; otherwise, revenues for the two nine-month periods remained relatively constant due to contractual minimum volume guarantees.

Operating Costs and Expenses Highlights

Operating costs and expenses were $104.2 million and $228.1 million for the three and nine months ended September 30, 2020, respectively, representing increases of $32.4 million and $25.6 million from the three and nine months ended September 30, 2019, respectively. The increases were mainly due to the goodwill impairment charge related to our Cheyenne business unit, partially offset by lower rental expenses, maintenance costs and variable costs such as electricity and chemicals associated with lower volumes.

Interest expense was $14.1 million and $45.7 million for the three and nine months ended September 30, 2020, respectively, representing decreases of $4.7 million and $11.4 million over the same periods of 2019, respectively. The decreases were mainly due to market interest rate decreases under our senior secured revolving credit facility and refinancing our $500 million aggregate principal amount of 6.0% senior notes due 2024 with $500 million aggregate principal amount of 5.0% senior notes due 2028.

We have scheduled a webcast conference call today at 4:00 PM Eastern Time to discuss financial results. This webcast may be accessed at:

https://event.on24.com/wcc/r/2627977/792AA96920FB0C011D30448BC2901ADB

An audio archive of this webcast will be available using the above noted link through November 18, 2020.

About Holly Energy Partners, L.P.

Holly Energy Partners, L.P., headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries. The Partnership, through its subsidiaries and joint ventures, owns and/or operates petroleum product and crude pipelines, tankage and terminals in Texas, New Mexico, Washington, Idaho, Oklahoma, Utah, Nevada, Wyoming and Kansas, as well as refinery processing units in Utah and Kansas.

HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P.

The statements in this press release relating to matters that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. These statements are based on our beliefs and assumptions and those of our general partner using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties. Although we and our general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither we nor our general partner can give assurance that our expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in these statements. Any differences could be caused by a number of factors including, but not limited to:

  • the extraordinary market environment and effects of the COVID-19 pandemic, including the continuation of a material decline in demand for refined petroleum products in markets we serve;
  • risks and uncertainties with respect to the actual quantities of petroleum products and crude oil shipped on our pipelines and/or terminalled, stored and throughput in our terminals and refinery processing units;
  • the economic viability of HollyFrontier Corporation, our other customers and our joint ventures' other customers, including any refusal or inability of our or our joint ventures' customers or counterparties to perform their obligations under their contracts;
  • the demand for refined petroleum products in markets we serve;
  • our ability to purchase and integrate future acquired operations;
  • our ability to complete previously announced or contemplated acquisitions;
  • the availability and cost of additional debt and equity financing;
  • the possibility of temporary or permanent reductions in production or shutdowns at refineries utilizing our pipelines, terminal facilities and refinery processing units, due to reasons such as infection in the workforce, in response to reductions in demand or lower gross margins due to the economic impact of the COVID-19 pandemic, and any potential asset impairments resulting from such actions;
  • the effects of current and future government regulations and policies, including the effects of current and future restrictions on various commercial and economic activities in response to the COVID-19 pandemic;
  • delay by government authorities in issuing permits necessary for our business or our capital projects;
  • our and our joint venture partners' ability to complete and maintain operational efficiency in carrying out routine operations and capital construction projects;
  • the possibility of terrorist or cyber attacks and the consequences of any such attacks;
  • general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States;
  • the impact of recent or proposed changes in tax laws and regulations that affect master limited partnerships; and
  • other financial, operational and legal risks and uncertainties detailed from time to time in our Securities and Exchange Commission filings.

The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

RESULTS OF OPERATIONS (Unaudited)

Income, Distributable Cash Flow and Volumes
The following tables present income, distributable cash flow and volume information for the three and the nine months ended September 30, 2020 and 2019.

 

Three Months Ended September 30,

 

Change from

 

2020

 

2019

 

2019

 

(In thousands, except per unit data)

Revenues

 

 

 

 

 

Pipelines:

 

 

 

 

 

Affiliates – refined product pipelines

$

18,619

 

 

$

19,401

 

 

$

(782)

 

Affiliates – intermediate pipelines

7,537

 

 

7,490

 

 

47

 

Affiliates – crude pipelines

20,218

 

 

21,675

 

 

(1,457)

 

 

46,374

 

 

48,566

 

 

(2,192)

 

Third parties – refined product pipelines

9,812

 

 

13,270

 

 

(3,458)

 

Third parties – crude pipelines

12,106

 

 

11,327

 

 

779

 

 

68,292

 

 

73,163

 

 

(4,871)

 

Terminals, tanks and loading racks:

 

 

 

 

 

Affiliates

34,215

 

 

37,183

 

 

(2,968)

 

Third parties

4,821

 

 

5,271

 

 

(450)

 

 

39,036

 

 

42,454

 

 

(3,418)

 

 

 

 

 

 

 

Refinery processing units - Affiliates

20,403

 

 

20,278

 

 

125

 

 

 

 

 

 

 

Total revenues

127,731

 

 

135,895

 

 

(8,164)

 

Operating costs and expenses

 

 

 

 

 

Operations

40,003

 

 

44,924

 

 

(4,921)

 

Depreciation and amortization

26,190

 

 

24,121

 

 

2,069

 

General and administrative

2,332

 

 

2,714

 

 

(382)

 

Goodwill impairment

35,653

 

 

 

 

35,653

 

 

104,178

 

 

71,759

 

 

32,419

 

Operating income

23,553

 

 

64,136

 

 

(40,583)

 

 

 

 

 

 

 

Equity in earnings of equity method investments

1,316

 

 

1,334

 

 

(18)

 

Interest expense, including amortization

(14,104)

 

 

(18,807)

 

 

4,703

 

Interest income

2,803

 

 

2,243

 

 

560

 

Gain on sales-type leases

 

 

35,166

 

 

(35,166)

 

Other income

7,465

 

 

142

 

 

7,323

 

 

(2,520)

 

 

20,078

 

 

(22,598)

 

Income before income taxes

21,033

 

 

84,214

 

 

(63,181)

 

State income tax benefit (expense)

(34)

 

 

(30)

 

 

(4)

 

Net income

20,999

 

 

84,184

 

 

(63,185)

 

Allocation of net income attributable to noncontrolling interests

(3,186)

 

 

(1,839)

 

 

(1,347)

 

Net income attributable to Holly Energy Partners

$

17,813

 

 

$

82,345

 

 

$

(64,532)

 

Limited partners’ earnings per unit – basic and diluted

$

0.17

 

 

$

0.78

 

 

$

(0.61)

 

Weighted average limited partners’ units outstanding

105,440

 

 

105,440

 

 

 

EBITDA(1)

$

55,338

 

 

$

123,060

 

 

$

(67,722)

 

Adjusted EBITDA(1)

$

86,435

 

 

$

90,269

 

 

$

(3,834)

 

Distributable cash flow(2)

$

76,894

 

 

$

68,838

 

 

$

8,056

 

Volumes (bpd)

 

 

 

 

 

Pipelines:

 

 

 

 

 

Affiliates – refined product pipelines

119,403

 

 

129,681

 

 

(10,278)

 

Affiliates – intermediate pipelines

142,817

 

 

153,547

 

 

(10,730)

 

Affiliates – crude pipelines

270,840

 

 

358,867

 

 

(88,027)

 

 

533,060

 

 

642,095

 

 

(109,035)

 

Third parties – refined product pipelines

60,203

 

 

67,440

 

 

(7,237)

 

Third parties – crude pipelines

133,487

 

 

129,222

 

 

4,265

 

 

726,750

 

 

838,757

 

 

(112,007)

 

Terminals and loading racks:

 

 

 

 

 

Affiliates

401,904

 

 

482,291

 

 

(80,387)

 

Third parties

57,355

 

 

59,307

 

 

(1,952)

 

 

459,259

 

 

541,598

 

 

(82,339)

 

 

 

 

 

 

 

Refinery processing units - Affiliates

62,016

 

 

75,857

 

 

(13,841)

 

 

 

 

 

 

 

Total for pipelines and terminal assets (bpd)

1,248,025

 

 

1,456,212

 

 

(208,187)

 

 

Nine Months Ended September 30,

 

Change from

 

2020

 

2019

 

2019

 

(In thousands, except per unit data)

Revenues

 

 

 

 

 

Pipelines:

 

 

 

 

 

Affiliates – refined product pipelines

$

55,004

 

 

$

60,892

 

 

$

(5,888)

 

Affiliates – intermediate pipelines

22,486

 

 

22,068

 

 

418

 

Affiliates – crude pipelines

59,922

 

 

63,447

 

 

(3,525)

 

 

137,412

 

 

146,407

 

 

(8,995)

 

Third parties – refined product pipelines

33,360

 

 

40,652

 

 

(7,292)

 

Third parties – crude pipelines

26,946

 

 

33,467

 

 

(6,521)

 

 

197,718

 

 

220,526

 

 

(22,808)

 

Terminals, tanks and loading racks:

 

 

 

 

 

Affiliates

100,711

 

 

103,852

 

 

(3,141)

 

Third parties

12,103

 

 

15,269

 

 

(3,166)

 

 

112,814

 

 

119,121

 

 

(6,307)

 

 

 

 

 

 

 

Refinery processing units - Affiliates

59,860

 

 

61,496

 

 

(1,636)

 

 

 

 

 

 

 

Total revenues

370,392

 

 

401,143

 

 

(30,751)

 

Operating costs and expenses

 

 

 

 

 

Operations

109,721

 

 

123,045

 

 

(13,324)

 

Depreciation and amortization

75,202

 

 

72,192

 

 

3,010

 

General and administrative

7,569

 

 

7,322

 

 

247

 

Goodwill impairment

35,653

 

 

 

 

35,653

 

 

228,145

 

 

202,559

 

 

25,586

 

Operating income

142,247

 

 

198,584

 

 

(56,337)

 

 

 

 

 

 

 

Equity in earnings of equity method investments

5,186

 

 

5,217

 

 

(31)

 

Interest expense, including amortization

(45,650)

 

 

(57,059)

 

 

11,409

 

Interest income

7,834

 

 

3,322

 

 

4,512

 

Loss on early extinguishment of debt

(25,915)

 

 

 

 

(25,915)

 

Gain on sales-type leases

33,834

 

 

35,166

 

 

(1,332)

 

Other income (loss)

8,439

 

 

(57)

 

 

8,496

 

 

(16,272)

 

 

(13,411)

 

 

(2,861)

 

Income before income taxes

125,975

 

 

185,173

 

 

(59,198)

 

State income tax expense

(110)

 

 

(36)

 

 

(74)

 

Net income

125,865

 

 

185,137

 

 

(59,272)

 

Allocation of net income attributable to noncontrolling interests

(6,721)

 

 

(5,920)

 

 

(801)

 

Net income attributable to Holly Energy Partners

$

119,144

 

 

$

179,217

 

 

$

(60,073)

 

Limited partners’ earnings per unit—basic and diluted

$

1.13

 

 

$

1.70

 

 

$

(0.57)

 

Weighted average limited partners’ units outstanding

105,440

 

 

105,440

 

 

 

EBITDA(1)

$

232,272

 

 

$

305,182

 

 

$

(72,910)

 

Adjusted EBITDA(1)

$

257,711

 

 

$

272,391

 

 

$

(14,680)

 

Distributable cash flow(2)

$

213,058

 

 

$

206,923

 

 

$

6,135

 

 

 

 

 

 

 

Volumes (bpd)

 

 

 

 

 

Pipelines:

 

 

 

 

 

Affiliates – refined product pipelines

116,641

 

 

130,426

 

 

(13,785)

 

Affiliates – intermediate pipelines

137,816

 

 

141,991

 

 

(4,175)

 

Affiliates – crude pipelines

276,128

 

 

376,518

 

 

(100,390)

 

 

530,585

 

 

648,935

 

 

(118,350)

 

Third parties – refined product pipelines

55,921

 

 

71,773

 

 

(15,852)

 

Third parties – crude pipelines

103,955

 

 

132,101

 

 

(28,146)

 

 

690,461

 

 

852,809

 

 

(162,348)

 

Terminals and loading racks:

 

 

 

 

 

Affiliates

401,245

 

 

429,660

 

 

(28,415)

 

Third parties

49,753

 

 

62,437

 

 

(12,684)

 

 

450,998

 

 

492,097

 

 

(41,099)

 

 

 

 

 

 

 

Refinery processing units - Affiliates

60,573

 

 

73,178

 

 

(12,605)

 

 

 

 

 

 

 

Total for pipelines and terminal assets (bpd)

1,202,032

 

 

1,418,084

 

 

(216,052)

 

(1) Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is calculated as net income attributable to Holly Energy Partners plus (i) interest expense, net of interest income, (ii) state income tax and (iii) depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus (i) loss on early extinguishment of debt, (ii) goodwill impairment and (iii) pipeline tariffs not included in revenues due to impacts from lease accounting for certain pipeline tariffs minus (iv) gain on sales-type leases, (v) HEP's pro-rata share of gain on business interruption insurance settlement and (vi) pipeline lease payments not included in operating costs and expenses.


Contacts

John Harrison, Senior Vice President and
Chief Financial Officer and Treasurer

Craig Biery, Vice President, Investor Relations
Holly Energy Partners, L.P.
214-954-6511


Read full story here

DUBLIN--(BUSINESS WIRE)--The "Oman Projects, H2 2020 with COVID-19 Impact Update - MEED Insights" report has been added to ResearchAndMarkets.com's offering.


Oman has historically been one of the smaller markets in the GCC. A smaller population and more limited oil and gas resources than its neighbours have traditionally meant that sits behind Kuwait and Qatar and ahead of Bahrain in terms of annual contract awards.

But that is not to say that the Sultanate does not offer a variety of interesting opportunities for contractors, consultants and suppliers alike. In recent years, there have been a number of large-scale Projects, across different sectors such as the Duqm refinery, the new Muscat international airport, and the Batinah expressway scheme among others.

The Sultanate's more delicate economic position has meant that it has been hit hard by Covid-19. Faced with a reduction in revenues, the government reacted by cutting back on Projects, spending and slowing new tenders on the tender board to a crawl.

However, some major contracts have been awarded in 2020 because that have been funded by development funds from Oman's richer GCC neighbours. These Projects, have ensured that the Sultanate has not seen a sharp year on year fall in Projects, spending so far.

Faced with an economic downturn, the outlook for Oman's future Projects, market will hinge on foreign investment in its major industrial hubs in Sohar, Duqm and Salalah. Chinese investment in particular will be key as part of its Belt and Road Initiative to benefit from Oman's position on the main EastWest shipping axis.

Also critical will be the development of the Sultanate's PPP project plans to obtain more private sector involvement in the funding, construction and operation of future Projects. In the absence of major government capital expenditure, private sector financing will be pivotal in getting Projects, moving again.

Reasons to Buy

  • Opportunities and challenges in Oman's Projects, market
  • Analysis of the pipeline of planned Projects, and contract awards
  • Key policies and drivers shaping the outlook for Projects, in Oman
  • Political and economic background
  • The barriers and challenges that may arise
  • Sector-by-sector breakdown of future project plans
  • Key drivers of Projects, in each sector
  • Oman's most valuable key Projects, and major project sponsors

Key Topics Covered:

Preface

  • Executive Summary

Oman Country Overview

  • Oman Projects Market

Impact of COVID-19 and Latest Forecasts

  • Oil and Gas
  • Construction
  • Transport
  • Industrial
  • Power and Water

For more information about this report visit https://www.researchandmarkets.com/r/tkg0r3


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

HOUSTON--(BUSINESS WIRE)--#DNOW--NOW Inc. (NYSE: DNOW) announced results for the third quarter ended September 30, 2020.


Financial Highlights

  • Revenue was $326 million for the third quarter of 2020
  • Net loss was $22 million and non-GAAP net loss excluding other costs was $17 million for the third quarter of 2020
  • Diluted loss per share was $0.20 and non-GAAP diluted loss per share excluding other costs was $0.16 for the third quarter of 2020
  • Non-GAAP EBITDA excluding other costs for the third quarter of 2020 was a loss of $15 million, which includes the unfavorable impact of $9 million in inventory charges
  • Cash and cash equivalents was $325 million and long-term debt was zero at September 30, 2020
  • Free cash flow for the third quarter of 2020 was $57 million

David Cherechinsky, President and CEO of NOW Inc., added, “I am excited about the momentum building in the execution of our strategy. DNOW’s performance reflects our employees’ steadfast dedication to provide superior service and value to our customers. We have produced strong gross margins despite the deflationary pull by the market and have extracted historic levels of cost from the business with plans for further cost transformation. Our working capital discipline has resulted in a record cash balance and we are deploying disruptive technologies to simplify the customer experience, develop new revenue channels and drive efficiencies. We remain debt free with more than a half a billion dollars in total liquidity to continue our investment in technology initiatives, while judiciously pursuing inorganic opportunities that provide the optimal strategic fit.”

About NOW Inc.

DistributionNOW is a worldwide supplier of energy and industrial products and engineered equipment solutions. With approximately 2,550 employees and a network of approximately 200 locations worldwide, we offer a suite of digital solutions branded as DigitalNOW® that provide customers world-class technology for digital commerce and data and information management. Our locations provide products and solutions to exploration and production companies, energy transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers and engineering and construction companies. DistributionNOW has a legacy of over 150 years and is headquartered in Houston, Texas.

Statements made in this press release that are forward-looking in nature are intended to be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and may involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to documents filed by NOW Inc. with the U.S. Securities and Exchange Commission, which identify significant risk factors which could cause actual results to differ from those contained in the forward-looking statements.

NOW INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

 

September 30,

December 31,

2020

2019

(Unaudited)

ASSETS

Current assets:
Cash and cash equivalents

$

325

 

$

183

 

Receivables, net

 

213

 

 

370

 

Inventories, net

 

318

 

 

465

 

Assets held-for-sale

 

6

 

 

34

 

Prepaid and other current assets

 

16

 

 

15

 

Total current assets

 

878

 

 

1,067

 

Property, plant and equipment, net

 

101

 

 

120

 

Deferred income taxes

 

2

 

 

2

 

Goodwill

 

 

 

245

 

Intangibles, net

 

 

 

90

 

Other assets

 

58

 

 

67

 

Total assets

$

1,039

 

$

1,591

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable

$

163

 

$

255

 

Accrued liabilities

 

94

 

 

127

 

Liabilities held-for-sale

 

1

 

 

6

 

Other current liabilities

 

6

 

 

8

 

Total current liabilities

 

264

 

 

396

 

Long-term operating lease liabilities

 

29

 

 

34

 

Deferred income taxes

 

 

 

4

 

Other long-term liabilities

 

15

 

 

13

 

Total liabilities

 

308

 

 

447

 

Commitments and contingencies
Stockholders' equity:
Preferred stock - par value $0.01; 20 million shares authorized;
no shares issued and outstanding

 

 

 

 

Common stock - par value $0.01; 330 million shares authorized; 109,379,627 and
109,207,678 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

 

1

 

 

1

 

Additional paid-in capital

 

2,050

 

 

2,046

 

Accumulated deficit

 

(1,164

)

 

(775

)

Accumulated other comprehensive loss

 

(156

)

 

(128

)

Total stockholders' equity

 

731

 

 

1,144

 

Total liabilities and stockholders' equity

$

1,039

 

$

1,591

 

NOW INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In millions, except per share data)

 

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2020

2019

2020

2020

2019

 
Revenue

$

326

 

$

751

 

$

370

 

$

1,300

 

$

2,312

 

Operating expenses:
Cost of products

 

264

 

 

601

 

 

302

 

 

1,053

 

 

1,851

 

Warehousing, selling and administrative

 

83

 

 

136

 

 

97

 

 

310

 

 

407

 

Impairment charges

 

 

 

 

 

 

 

320

 

 

 

Operating profit (loss)

 

(21

)

 

14

 

 

(29

)

 

(383

)

 

54

 

Other expense

 

 

 

(2

)

 

(2

)

 

(2

)

 

(8

)

Income (loss) before income taxes

 

(21

)

 

12

 

 

(31

)

 

(385

)

 

46

 

Income tax provision (benefit)

 

1

 

 

2

 

 

(1

)

 

(2

)

 

4

 

Net income (loss)

$

(22

)

$

10

 

$

(30

)

$

(383

)

$

42

 

Earnings (loss) per share:
Basic earnings (loss) per common share

$

(0.20

)

$

0.09

 

$

(0.27

)

$

(3.50

)

$

0.38

 

Diluted earnings (loss) per common share

$

(0.20

)

$

0.09

 

$

(0.27

)

$

(3.50

)

$

0.38

 

Weighted-average common shares outstanding, basic

 

109

 

 

109

 

 

109

 

 

109

 

 

109

 

Weighted-average common shares outstanding, diluted

 

109

 

 

109

 

 

109

 

 

109

 

 

109

 

NOW INC.

SUPPLEMENTAL INFORMATION

 

BUSINESS SEGMENTS (UNAUDITED)

(In millions)

 

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2020

2019

2020

2020

2019

Revenue:
United States

$

228

$

567

$

260

$

929

$

1,772

Canada

 

42

 

83

 

41

 

161

 

243

International

 

56

 

101

 

69

 

210

 

297

Total revenue

$

326

$

751

$

370

$

1,300

$

2,312

NOW INC.

SUPPLEMENTAL INFORMATION (CONTINUED)

 

U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) TO NON-GAAP RECONCILIATIONS

 

NET INCOME (LOSS) TO NON-GAAP EBITDA EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)

(In millions)

 

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2020

2019

2020

2020

2019

 
GAAP net income (loss) (1)

$

(22

)

$

10

 

$

(30

)

$

(383

)

$

42

 

Interest, net

 

 

 

1

 

 

 

 

 

 

4

 

Income tax provision (benefit)

 

1

 

 

2

 

 

(1

)

 

(2

)

 

4

 

Depreciation and amortization

 

6

 

 

10

 

 

7

 

 

23

 

 

30

 

Other costs (2)

 

 

 

1

 

 

9

 

 

334

 

 

2

 

EBITDA excluding other costs

$

(15

)

$

24

 

$

(15

)

$

(28

)

$

82

 

EBITDA % excluding other costs (3)

 

(4.6

%)

 

3.2

%

 

(4.1

%)

 

(2.2

%)

 

3.5

%

NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) EXCLUDING OTHER COSTS RECONCILIATION (UNAUDITED)

(In millions)

 

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2020

2019

2020

2020

2019

 
GAAP net income (loss) (1)

$

(22

)

$

10

 

$

(30

)

$

(383

)

$

42

 

Other costs, net of tax (4) (5)

 

5

 

 

(1

)

 

12

 

 

340

 

 

(10

)

Net income (loss) excluding other costs (5)

$

(17

)

$

9

 

$

(18

)

$

(43

)

$

32

 

 
 

DILUTED EARNINGS (LOSS) PER SHARE TO NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE EXCLUDING OTHER COSTS

RECONCILIATION (UNAUDITED)

 

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

2020

2019

2020

2020

2019

 
GAAP diluted earnings (loss) per share (1)

$

(0.20

)

$

0.09

 

$

(0.27

)

$

(3.50

)

$

0.38

 

Other costs, net of tax (4)

 

0.04

 

 

(0.01

)

 

0.11

 

 

3.10

 

 

(0.09

)

Diluted earnings (loss) per share excluding other costs (5)

$

(0.16

)

$

0.08

 

$

(0.16

)

$

(0.40

)

$

0.29

 

(1)

In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The non-GAAP financial measures include: (i) earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other costs, (ii) net income (loss) excluding other costs and (iii) diluted earnings (loss) per share excluding other costs. Each of these financial measures excludes the impact of certain other costs and therefore has not been calculated in accordance with GAAP. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included in the schedules herein.

(2)

Other costs for the nine months ended September 30, 2020 included impairment charges, as well as, net separation and transaction-related expenses, which are included in operating loss.

(3)

EBITDA % excluding other costs is defined as EBITDA excluding other costs divided by Revenue.

(4)

Other costs, net of tax, for the three and nine months ended September 30, 2020, included an expense of $5 million and $10 million, respectively, from changes in the valuation allowance recorded against the Company’s deferred tax assets; as well as, nil and $316 million, respectively, related to the impairment charges of goodwill, intangibles and other assets and nil and $14 million, respectively, in net separation and transaction-related expenses. The Company has excluded the impact of these items on its valuation allowance in computing net income (loss) excluding other costs.

(5)

Totals may not foot due to rounding.

 


Contacts

Mark Johnson
Senior Vice President and Chief Financial Officer
(281) 823-4754

DUBLIN--(BUSINESS WIRE)--The "Bahrain Projects, H2 2020 with COVID-19 Impact Update - MEED Insights" report has been added to ResearchAndMarkets.com's offering.


Bahrain has historically had the smallest Projects, market in the GCC, which is not surprising given it has the smallest economy and population of all the GCC states. However, with only limited oil and gas reserves of its own, its Projects, market has grown to be less dependent on the crude price, and therefore more capable of withstanding the bearish market.

The COVID-19 pandemic threatens to disrupt the Bahraini economy more than any other GCC state. Without and major oil output to fall back on, and with tourism - particularly from Saudi Arabia - collapsing, the economy will not survive without government intervention. In late March, the government did just that by announcing a $11.3bn stimulus, equivalent to almost 30% of the kingdom's total GDP. It also told departments to cut capital costs by 30% and to reschedule some Projects,.

At the same time, the Projects, funding that Bahrain has been dependent on from its neighbours is less secure as they face their own financing challenges. As a result, it is difficult to see how the kingdom can meet the same kind of spending totals as the last couple of years. This is reflected by the muted revised forecast for total awards this year.

Written by MEED, the Middle East market experts within the publisher's group.

Reasons to Buy

  • Identify new opportunities
  • Support business planning and strategy
  • Identify challenges to enable you to mitigate and avoid risk
  • Gain outlook for contract awards
  • Access sector-by-sector breakdown of future project plans
  • Preview profile contractor landscape in each sector
  • Assess the challenges in Bahrain's Projects, market

Key Topics Covered:

Preface

  • Executive Summary

Bahrain Country Overview

  • Bahrain Projects Market

Impact of COVID-19 and Latest Forecasts

  • Oil and Gas
  • Construction
  • Transport
  • Industrial
  • Power and Water

For more information about this report visit https://www.researchandmarkets.com/r/v5sena


Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
This email address is being protected from spambots. You need JavaScript enabled to view it.
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

Sungrow also joins the Tigo Enhanced program in pursuit of the growing US rooftop PV market


CAMPBELL, Calif.--(BUSINESS WIRE)--#Renewables--Sungrow, the global leading inverter solution supplier for renewables has selected Tigo as its technology provider for PV rapid shutdown solutions in the United States. The company has also joined the Tigo Enhanced initiative, which makes it as simple and frictionless as possible for PV customers to get reliable rapid shutdown solutions.

The Sungrow inverters that integrate Tigo technology will display the Tigo Enhanced logo to clearly indicate that the inverters are ready to use with Tigo’s industry leading rapid shutdown devices. Customers can find the Tigo Enhanced logo on the front panel of the Sungrow inverters and the inverter data sheets.

“We are excited to be bringing a plug and play rapid shutdown solution to our PV customers. Our inverters are ready to pair with Tigo rapid shutdown devices right out of the box,” said Hank Wang, President of Sungrow Americas.

Tigo’s Rapid Shutdown Transmitters are embedded in Sungrow’s 36 kW and 60 kW 3 phase inverters. The inverters ship ready to be paired with Tigo’s TS4-A-F and TS4-A-2F rapid shutdown devices, making rapid shutdown compliant installations simple and quick.

“Sungrow has long been a leader in PV inverters. It’s great that we can offer our customers an integrated solution and we are looking forward to growing our business alongside theirs,” said Gal Bauer, VP of Product at Tigo.

The companies will be co-hosting a live webinar on their solutions for the US rooftop PV market at 10am PT on November 5, 2020. Interested parties can reserve their spot with this registration link.

The Sungrow inverters and Tigo rapid shutdown devices can be purchased at major distributor locations throughout the US. For more information, contact: This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.

About Sungrow

Sungrow Power Supply Co., Ltd ("Sungrow") is the world's most bankable inverter brand with over 100 GW to be installed worldwide as of December 2019. Founded in 1997 by University Professor Cao Renxian, Sungrow is a leader in the research and development of solar inverters, with the largest dedicated R&D team in the industry and a broad product portfolio offering PV inverter solutions and energy storage systems for utility-scale, commercial, and residential applications, as well as internationally recognized floating PV plant solutions. With a strong 23-year track record in the PV space, Sungrow products power installations in over 60 countries, maintaining a worldwide market share of over 15%. Learn more about Sungrow by visiting www.sungrowpower.com.

About Tigo

Tigo is the worldwide leader in flexible module level power electronics (MLPE) with innovative solutions that significantly enhance safety, increase energy production, and decrease operating costs of photovoltaic (PV) systems. Tigo’s TS4 platform maximizes the benefit of PV systems and provides customers with the most scalable, versatile, and reliable MLPE solution available. Tigo was founded in Silicon Valley in 2007 to accelerate the adoption of solar energy worldwide. Tigo systems operate on 7 continents and produce gigawatt hours of reliable, clean, affordable and safe solar energy daily. Tigo's global team is dedicated to making the best MLPE on earth so more people can enjoy the benefits of solar. Visit us at www.tigoenergy.com.


Contacts

Media Contact for Tigo

John Lerch
408.402.0802 x430
This email address is being protected from spambots. You need JavaScript enabled to view it.

Kim Kuesel will lead sales, professional services and customer support in this key market

OAKLAND, Calif.--(BUSINESS WIRE)--Navis, a part of Cargotec Corporation, and the provider of operational technologies and services that unlock greater performance and efficiency for leading organizations throughout the global shipping industry, announced today that they have appointed seasoned technology and supply chain leader, Kim Kuesel as Vice President and General Manager of the Americas.


With over 20 years of supply chain experience, Kuesel has held a variety of leadership positions where she focused on supply chain technology, management consulting and retail supply chain management. Her previous experience includes senior roles at Infor, GT Nexus, Clarkston Consulting, RH, and Williams Sonoma, where she was focused on accelerating innovation and growth through the use of technology. Through her deep experience with the intricacies and challenges in digitizing large-scale supply chain operations, Kuesel has been able to deliver world class solutions that yield measurable business results for the organizations she’s worked at. As Vice President and GM of the Americas at Navis, Kim will focus on customer value, bringing the shipper view to the products and services Navis offers and expanding the business in the Americas.

“As a result of the unprecedented events of this year, there has been a bigger focus on supply chain and logistics, which have made innovative solutions in the industry more important than ever,” said Kim Kuesel, Vice President and GM of the Americas, Navis. “I am excited to work at a leading technology company in the ocean shipping industry and look forward to lending my expertise to plan and execute strategies in the Americas to propel Navis’ business forward.”

For more information visit www.navis.com and to learn more about Navis’ leadership click here.

About Navis, LLC

Navis, a part of Cargotec Corporation, is a provider of operational technologies and services that unlock greater performance and efficiency for the world’s leading organizations across the cargo supply chain. Navis combines industry best practices with innovative technology and world-class services, to enable our customers, regardless of cargo type, to maximize performance and reduce risk. Through its holistic approach to operational optimization, Navis customers benefit from improved visibility, velocity and measurable business results. Whether tracking cargo through a terminal, improving vessel safety and cargo capacity, optimizing rail network planning and asset utilization, automating equipment operations, or managing multiple terminals through an integrated, centralized solution, Navis helps all customers streamline operations. www.navis.com

About Cargotec Corporation

Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimize global cargo flows and create sustainable customer value. Cargotec's sales in 2019 totaled approximately EUR 3.7 billion and it employs around 12,000 people. www.cargotec.com


Contacts

Jennifer Grinold
Navis, LLC
T+1 510 267 5002
This email address is being protected from spambots. You need JavaScript enabled to view it.

Geena Pickering
Affect
T+1 212 398 9680
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ST. CATHARINES, Ontario--(BUSINESS WIRE)--Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced its results for the three and nine months ended September 30, 2020.

All amounts reported below are in thousands of Canadian dollars, except for per share data and unless otherwise noted.

Third quarter ended September, 2020 highlights include:

  • Excluding the impact of fuel recovery and outside charter pass-through items, revenues in Domestic Dry-Bulk and Product Tankers were higher in the third quarter this year while Ocean Self-Unloader revenues were down as a result of COVID-19-related weakness in demand. Revenues were $155,002 compared to $167,901 for the 2019 quarter.
  • Strong freight rates and slightly higher volumes drove operating earnings for Domestic Dry-Bulk up 20% to $27,444 compared to $22,839 in 2019.
  • Operating earnings for Product Tankers were $8,689, up 30% compared to $6,677 in 2019, primarily driven by a slight increase in revenue days and stronger rates.
  • Operating earnings in Ocean Self-Unloaders were $6,319, up 23% compared to $5,124 for 2019. The increase was a result of higher revenue days, partially offset by the impact of reduced Pool volumes resulting from COVID-19.
  • Net earnings were $22,235 ($0.59 per share) compared to $21,049 ($0.55 per share) for 2019, as higher operating earnings offset an impairment provision recorded on a vessel owned by a joint venture.

Immediately prior to the quarter end, we took delivery of the Algoma Intrepid, the second Equinox Class 650' self-unloading dry-bulk carrier. This vessel, the ninth Equinox Class vessel to join the fleet, is expected to begin trading on the Great Lakes in November.

EBITDA, which includes our share of joint venture EBITDA, for the three months ended September 30, 2020 was $65,797 an increase of 13% or $7,349, compared to the same period in 2019. EBITDA is determined as follows:

 

 

Three Months Ended

Nine Months Ended

For the periods ended September 30

 

2020

2019

2020

2019

Net earnings

 

$

22,235

 

 

$

21,049

 

$

16,351

 

 

$

20,362

Depreciation and amortization

 

22,720

 

 

22,365

 

68,258

 

 

62,486

Interest and taxes

 

11,438

 

 

14,792

 

20,190

 

 

19,908

Foreign exchange loss (gain)

 

(385

)

 

242

 

(449

)

 

1,463

Impairment provision

 

9,789

 

 

 

9,789

 

 

EBITDA

 

$

65,797

 

 

$

58,448

 

$

114,139

 

 

$

104,219

"The Algoma team has been working hard to offset the impact the COVID-19 pandemic has had on the industries we serve and we are seeing this hard work come to fruition in our results," said Gregg Ruhl, President and CEO of Algoma Central Corporation. "We are committed to providing the best and most efficient service and we have the right team here to get the job done," continued Mr. Ruhl. "As we approach the end of the year, we know we still have some challenges ahead as market recovery in Canada and around the world is still uncertain. What we are certain of is that the marine industry is a huge player in this recovery and we will continue to do our part in keeping supply chains moving. I am looking forward to the arrival of the Algoma Intrepid in the Great Lakes and we are ready for her to join our operating fleet in November."

Outlook

A five year pilot program to extend the Seaway navigation season has been approved and the 2020 navigation season will remain open into the beginning of January. We expect the Domestic Dry-Bulk fleet to be in full utilization for the remainder of the year and into 2021 with increased demand for grain and salt leading into the winter months to take advantage of these extra operating days. Volumes in the construction and iron and steel industries continue to improve but will remain below normal for the balance of the year. Offsetting this, Algoma Intrepid has begun her journey home and will commence operations in November, bringing the fleet size to 20 compared to 19 last year. Demand will be lower for Product Tanker fleet in the fourth quarter. In the Ocean Self-Unloader segment , the pace of recovery remains uncertain, especially within the U.S. construction markets, driven by the uncertainty caused by the COVID-19 pandemic. Two ocean vessels are scheduled for dry-dock in the fourth quarter.

 

 

Three Months Ended

Nine Months Ended

For the periods ended September 30

 

2020

2019

2020

2019

 

 

 

 

 

 

Revenue

 

$

155,002

 

 

$

167,901

 

 

$

391,369

 

 

$

398,923

 

Operating expenses

 

(90,118

)

 

(109,589

)

 

(271,790

)

 

(291,938

)

Selling, general and administrative

 

(6,086

)

 

(7,491

)

 

(21,759

)

 

(23,072

)

Depreciation and amortization

 

(18,256

)

 

(19,227

)

 

(55,711

)

 

(50,827

)

Operating earnings

 

40,542

 

 

31,594

 

 

42,109

 

 

33,086

 

 

 

 

 

 

 

Interest expense

 

(4,655

)

 

(5,777

)

 

(14,831

)

 

(14,361

)

Interest income

 

71

 

 

220

 

 

297

 

 

979

 

Foreign currency gain (loss)

 

259

 

 

(372

)

 

432

 

 

(976

)

 

 

36,217

 

 

25,665

 

 

28,007

 

 

18,728

 

 

 

 

 

 

 

Income tax expense

 

(6,112

)

 

(7,758

)

 

(2,618

)

 

(1,528

)

Net (loss) earnings from investments in joint ventures

 

(7,870

)

 

3,142

 

 

(9,038

)

 

3,162

 

 

 

 

 

 

 

Net Earnings

 

$

22,235

 

 

$

21,049

 

 

$

16,351

 

 

$

20,362

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.59

 

 

$

0.55

 

 

$

0.43

 

 

$

0.53

 

Diluted earnings per share

 

$

0.55

 

 

$

0.52

 

 

$

0.43

 

 

$

0.53

 

 

 

Three Months Ended

Nine Months Ended

For the periods ended September 30

 

2020

2019

2020

2019

Domestic Dry-Bulk

 

 

 

 

 

Revenue

 

$

88,144

 

 

$

91,716

 

 

$

188,197

 

 

$

196,543

 

Operating earnings

 

27,444

 

 

22,839

 

 

20,472

 

 

15,802

 

Product Tankers

 

 

 

 

 

Revenue

 

29,798

 

 

36,169

 

 

90,245

 

 

103,184

 

Operating earnings

 

8,689

 

 

6,677

 

 

15,267

 

 

15,455

 

Ocean Self-Unloaders

 

 

 

 

 

Revenue

 

34,235

 

 

36,939

 

 

104,130

 

 

89,508

 

Operating earnings

 

6,319

 

 

5,124

 

 

13,717

 

 

10,868

 

Corporate and Other

 

 

 

 

 

Revenue

 

2,825

 

 

3,077

 

 

8,797

 

 

9,688

 

Operating loss

 

(2,127

)

 

(3,046

)

 

(7,347

)

 

(9,039

)

The MD&A for the three and nine months ended September 30, 2020 includes further details. Full results for the three and nine months ended September 30, 2020 can be found on the Company’s website at www.algonet.com/investor-relations and on SEDAR at www.sedar.com.

Normal Course Issuer Bid

On March 19, 2020, the Company renewed its normal course issuer bid with the intention to purchase, through the facilities of the TSX, up to 1,890,457 of its Common Shares ("Shares") representing approximately 5% of the 37,809,143 Shares which were issued and outstanding as at the close of business on March 4, 2020 (the “NCIB”). In order to preserve capital, no common shares were purchased under the NCIB during the third quarter.

Cash Dividends

The Company’s Board of Directors have authorized payment of a quarterly dividend to shareholders of $0.13 per common share. The dividend will be paid on December 1, 2020 to shareholders of record on November 17, 2020.

Use of Non-GAAP Measures

There are measures included in this press release that do not have a standardized meaning under generally accepted accounting principles (GAAP). The Company includes these measures because it believes certain investors use these measures as a means of assessing financial performance. EBITDA is a non-GAAP measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Please refer to the Management’s Discussions and Analysis for the three and nine months ended September 30, 2020 for further information regarding non-GAAP measures.

About Algoma Central

Algoma owns and operates the largest fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers, cement carriers, and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets and a 50% interest in NovaAlgoma, which owns and operates a diversified portfolio of dry-bulk fleets serving customers internationally.


Contacts

Gregg A. Ruhl
President & CEO
905-687-7890

Peter D. Winkley
Chief Financial Officer
905-687-7897

Or visit
www.algonet.com or www.sedar.com

Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.61 for the 2020 Third Quarter

Adjusted Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.65 for the 2020 Third Quarter

Net Income Increased 362.4% and Adjusted EBITDAR Increased 10.0% for the 2020 Third Quarter Over Prior Year Period

WESTLAKE, Ohio--(BUSINESS WIRE)--Please replace the release with the following corrected version to add the Calculation of adjusted fuel gross margin and adjusted fuel gross margin per gallon table and move footnote (11) underneath the Calculation of adjusted EBITDAR margin table.


The updated release reads:

TRAVELCENTERS OF AMERICA INC. ANNOUNCES THIRD QUARTER 2020 FINANCIAL RESULTS

Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.61 for the 2020 Third Quarter

Adjusted Net Income Per Share of Common Stock Attributable to Common Stockholders of $0.65 for the 2020 Third Quarter

Net Income Increased 362.4% and Adjusted EBITDAR Increased 10.0% for the 2020 Third Quarter Over Prior Year Period

TravelCenters of America Inc. (Nasdaq: TA) today announced financial results for the quarter and nine months ended September 30, 2020.

Jonathan M. Pertchik, TA's CEO, made the following statement regarding the 2020 third quarter results:

"Despite the continued challenges presented by the global pandemic and the corresponding economic recession, we generated increases of 362.4% in net income, 29.9% in adjusted EBITDA and 10.0% in adjusted EBITDAR over the prior year third quarter. Fuel gross margin increased slightly by 0.8% over the prior year period driven by a significant increase in diesel fuel sales volume and the federal biodiesel blenders' tax credit. Four wheel traffic, which is reflected in gasoline sales volume, remained down over the prior year period and low volatility in the diesel fuel wholesale market caused fuel gross margin per gallon to decline compared to last year. Overall nonfuel revenues decreased 3.7% over the prior year period driven almost entirely by a reduction in revenues at our full service restaurants, many of which remain closed due to precautions taken in response to COVID-19. However, certain of our transformation initiatives have resulted in solid improvements in our store and retail, quick service restaurant and truck service departments, as well as improved revenues from diesel exhaust fluid. Although adjusted fuel gross margin and nonfuel revenues decreased 4.7% during the 2020 third quarter, our adjusted EBITDAR margin increased to 19.4% as compared to 16.8% for the prior year period. This improvement was a direct result of our sound discipline in managing expenses."

Reconciliations to GAAP:

Adjusted net income (loss), adjusted net income (loss) per share of common stock attributable to common stockholders, adjusted fuel gross margin, adjusted fuel gross margin per gallon, adjusted fuel gross margin and nonfuel revenues, EBITDA, adjusted EBITDA, adjusted EBITDAR and adjusted EBITDAR margin are non-GAAP financial measures. The U.S. generally accepted accounting principles, or GAAP, financial measures that are most directly comparable to the non-GAAP measures disclosed herein are included in the supplemental tables below.

Third Quarter 2020 Highlights:

  • Cash and cash equivalents of $280.4 million and availability under TA's revolving credit facility of $70.9 million for total liquidity of $351.3 million as of September 30, 2020.
  • The following table presents detailed results for TA's fuel sales for the 2020 and 2019 third quarters.

(in thousands)

Three Months Ended
September 30,

 

 

2020

 

2019

 

Change

Fuel sales volume (gallons):

 

 

 

 

 

Diesel fuel

 

485,488

 

 

 

431,336

 

 

12.6

%

Gasoline

 

69,614

 

 

 

80,343

 

 

(13.4)

%

Total fuel sales volume

 

555,102

 

 

 

511,679

 

 

8.5

%

 

 

 

 

 

 

Fuel gross margin

$

80,123

 

 

$

79,458

 

 

0.8

%

Adjusted fuel gross margin

 

70,565

 

 

 

79,458

 

 

(11.2)

%

Fuel gross margin per gallon

$

0.144

 

 

$

0.155

 

 

(7.1)

%

Adjusted fuel gross margin per gallon

 

0.127

 

 

 

0.155

 

 

(18.1)

%

  • The following table presents detailed results for TA's nonfuel revenues for the 2020 and 2019 third quarters.

(in thousands)

Three Months Ended
September 30,

 

 

2020

 

2019

 

Change

Nonfuel revenues:

 

 

 

 

 

Truck service

$

189,630

 

 

$

186,430

 

 

1.7

%

Store and retail services

 

179,517

 

 

 

173,033

 

 

3.7

%

Restaurant

 

77,665

 

 

 

109,129

 

 

(28.8)

%

Diesel exhaust fluid

 

27,285

 

 

 

23,497

 

 

16.1

%

Total nonfuel revenues

$

474,097

 

 

$

492,089

 

 

(3.7)

%

 

 

 

 

 

 

Nonfuel gross margin

$

285,983

 

 

$

294,504

 

 

(2.9)

%

Nonfuel gross margin percentage

 

60.3

%

 

 

59.8

%

 

50

pts

  • Adjusted fuel gross margin and nonfuel revenues of $544.7 million decreased $26.9 million, or 4.7%, as compared to the prior year period.
  • Net income of $8.7 million increased $6.8 million, or 362.4%, and adjusted net income of $9.2 million increased $7.3 million, or 389.9%, as compared to the prior year period.
  • Adjusted EBITDA of $41.5 million increased $9.6 million, or 29.9%, as compared to the prior year period.
  • Adjusted EBITDAR of $105.4 million increased $9.6 million, or 10.0%, as compared to the prior year period.
  • Adjusted EBITDAR margin increased to 19.4% from 16.8% for the prior year period.

Growth Strategies

TA has commenced numerous initiatives across its organization for the purpose of improving and enhancing operational efficiencies and profitability, including a company wide reorganization plan, or the Reorganization Plan. TA believes certain of these initiatives will increase diesel fuel and gasoline gross margin and fuel sales volume, increase market share in the truck service industry, improve merchandising and gross margin in store and retail services, improve operating effectiveness in its full service restaurants and expand its franchise base, while focusing on opportunities to further control costs in field operations.

On April 30, 2020, TA committed to and initiated the Reorganization Plan to improve the efficiency of its operations. As part of the Reorganization Plan, TA reduced its headcount and eliminated certain positions, which TA expects to result in approximately $13.1 million of net annual savings in selling, general and administrative expense. In addition, TA has made certain changes in its leadership and their roles and created both a corporate development and a procurement team. The costs of the Reorganization Plan were $4.3 million, which were comprised primarily of severance, outplacement services, stock based compensation expense associated with the accelerated vesting of previously granted stock awards for certain employees and fees for recruitment of certain executive positions.

On October 28, 2019, TA entered into a multi unit franchise agreement with IHOP Franchisor LLC a subsidiary of IHOP®, or IHOP, in which TA agreed to rebrand and convert up to 94 of its full service restaurants to IHOP restaurants over five years. Due to the COVID-19 pandemic, TA and IHOP agreed to delay the rebranding schedule by one year. Of the 94, TA is obligated to convert the initial 20 full service restaurants to IHOP restaurants with the remaining conversions at its discretion. TA currently operates these full service restaurants under its Iron Skillet or Country Pride brand names. The average investment per site to rebrand these restaurants is expected to be approximately $1.4 million.

Since the beginning of 2019, TA has entered into franchise agreements for 23 travel centers to be operated under one of TA's travel center brand names; four of these franchised travel centers began operations during 2019, two began operations in the 2020 first quarter, five began operations in the 2020 second quarter, two began operations in the 2020 third quarter, one began operations in the 2020 fourth quarter to date and TA anticipates the remaining nine franchised travel centers will be added to its network by the end of 2021. In addition, TA has entered into an agreement with one of these franchisees pursuant to which TA expects to add two additional franchised travel centers to its network, one within five years and the other within 10 years.

Underwritten Public Equity Offering

On July 6, 2020, TA received net proceeds of $80.0 million, after $0.3 million of offering costs and $5.1 million of underwriting discounts and commissions, from the sale and issuance of 6.1 million shares of common stock in an underwritten public equity offering. TA intends to use the net proceeds from this offering to fund deferred maintenance and other capital expenditures necessary to enhance property conditions and implement growth initiatives, for working capital and for general corporate purposes.

Conference Call

On November 4, 2020, at 10:00 a.m. Eastern time, TA will host a conference call to discuss its financial results and other activities for the three months ended September 30, 2020. Following management's remarks, there will be a question and answer period.

The conference call telephone number is 877-329-4614. Participants calling from outside the United States and Canada should dial 412-317-5437. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available for about a week after the call. To hear the replay, dial 412-317-0088. The replay pass code is 10148171.

A live audio webcast of the conference call will also be available in a listen only mode on TA's website at www.ta-petro.com. To access the webcast, participants should visit TA's website about five minutes before the call. The archived webcast will be available for replay on TA's website for about one week after the call. The transcription, recording and retransmission in any way of TA's third quarter conference call is strictly prohibited without the prior written consent of TA. The Company's website is not incorporated as part of this press release.

About TravelCenters of America Inc.

TA's nationwide business includes travel centers located in 44 U.S. states and in Canada, standalone truck service facilities located in three states and standalone restaurants located in 12 states. TA's travel centers operate under the "TravelCenters of America," "TA," "TA Express," "Petro Stopping Centers" and "Petro" brand names and offer diesel fuel and gasoline, restaurants, truck repair services, travel/convenience stores and other services designed to provide attractive and efficient travel experiences to professional drivers and other motorists. TA's standalone truck service facilities operate under the "TA Truck Service" brand name. TA's standalone restaurants operate principally under the "Quaker Steak & Lube," or QSL, brand name.

TRAVELCENTERS OF AMERICA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share amounts)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Revenues:

 

 

 

 

 

 

 

Fuel

$

791,880

 

 

$

1,074,680

 

 

$

2,244,219

 

 

$

3,175,492

 

Nonfuel

 

474,097

 

 

 

492,089

 

 

 

1,304,674

 

 

 

1,409,045

 

Rent and royalties from franchisees

 

3,947

 

 

 

3,723

 

 

 

10,482

 

 

 

10,611

 

Total revenues

 

1,269,924

 

 

 

1,570,492

 

 

 

3,559,375

 

 

 

4,595,148

 

 

 

 

 

 

 

 

 

Cost of goods sold (excluding depreciation):

 

 

 

 

 

 

 

Fuel

 

711,757

 

 

 

995,222

 

 

 

1,990,241

 

 

 

2,944,465

 

Nonfuel

 

188,114

 

 

 

197,585

 

 

 

512,784

 

 

 

553,351

 

Total cost of goods sold

 

899,871

 

 

 

1,192,807

 

 

 

2,503,025

 

 

 

3,497,816

 

 

 

 

 

 

 

 

 

Site level operating expense

 

221,864

 

 

 

241,740

 

 

 

655,950

 

 

 

709,105

 

Selling, general and administrative expense

 

32,967

 

 

 

40,178

 

 

 

108,171

 

 

 

116,850

 

Real estate rent expense

 

65,226

 

 

 

63,911

 

 

 

191,893

 

 

 

194,094

 

Depreciation and amortization expense

 

32,299

 

 

 

24,146

 

 

 

89,113

 

 

 

72,118

 

 

 

 

 

 

 

 

 

Income from operations

 

17,697

 

 

 

7,710

 

 

 

11,223

 

 

 

5,165

 

 

 

 

 

 

 

 

 

Interest expense, net

 

7,375

 

 

 

7,048

 

 

 

22,064

 

 

 

21,262

 

Other expense (income), net

 

233

 

 

 

(60)

 

 

 

1,109

 

 

 

370

 

Income (loss) before income taxes

 

10,089

 

 

 

722

 

 

 

(11,950)

 

 

 

(16,467)

 

(Provision) benefit for income taxes

 

(1,432)

 

 

 

1,150

 

 

 

4,222

 

 

 

6,819

 

Net income (loss)

 

8,657

 

 

 

1,872

 

 

 

(7,728)

 

 

 

(9,648)

 

Less: net income for noncontrolling interest

 

52

 

 

 

40

 

 

 

104

 

 

 

89

 

Net income (loss) attributable to common stockholders

$

8,605

 

 

$

1,832

 

 

$

(7,832)

 

 

$

(9,737)

 

 

 

 

 

 

 

 

 

Net income (loss) per share of common stock attributable to common stockholders:

 

 

 

 

 

 

 

Basic and diluted

$

0.61

 

 

$

0.23

 

 

$

(0.76)

 

 

$

(1.20)

 

 

 

 

 

 

 

 

 

Weighted average vested shares of common stock

 

13,779

 

 

 

7,777

 

 

 

9,890

 

 

 

7,770

 

Weighted average unvested shares of common stock

 

286

 

 

 

309

 

 

 

358

 

 

 

313

 

These financial statements should be read in conjunction with TA's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, to be filed with the U.S. Securities and Exchange Commission.

TRAVELCENTERS OF AMERICA INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts)

TA believes the non-GAAP financial measures presented in the tables below are meaningful supplemental disclosures. Management uses these measures in developing internal budgets and forecasts and analyzing TA's performance and believes that they may help investors gain a better understanding of changes in TA's operating results and its ability to pay rent or service debt when due, make capital expenditures and expand its business. These non-GAAP financial measures also may help investors to make comparisons between TA and other companies and to make comparisons of TA's financial and operating results between periods.

The non-GAAP financial measures TA presents should not be considered as alternatives to net income (loss) attributable to common stockholders, net income (loss), income from operations or net income (loss) per share of common stock attributable to common stockholders as an indicator of TA's operating performance or as a measure of TA's liquidity. Also, the non-GAAP financial measures TA presents may not be comparable to similarly titled amounts calculated by other companies.

TA believes that adjusted net income (loss), adjusted net income (loss) per share of common stock attributable to common stockholders, adjusted fuel gross margin and nonfuel revenues, EBITDA, adjusted EBITDA, adjusted fuel gross margin and adjusted fuel gross margin per gallon are meaningful disclosures that may help investors to better understand TA's financial performance by providing financial information that represents the operating results of TA's operations without the effects of items that do not result directly from TA's normal recurring operations and may allow investors to better compare TA's performance between periods and to the performance of other companies. TA calculates EBITDA as net income (loss) before interest, income taxes and depreciation and amortization expense, as shown below. TA calculates adjusted EBITDA by excluding items that it considers not to be normal, recurring, cash operating expenses or gains or losses.

In addition, TA believes that, because it leases a majority of its travel centers, presenting adjusted EBITDAR and adjusted EBITDAR margin may help investors compare the value of TA against companies that own and finance ownership of their properties with debt financing, since these measures eliminate the effects of variability in leasing methods and capital structures. These measures may also help investors evaluate TA's valuation if it owned its leased properties and financed that ownership with debt, in which case the interest expense TA incurred for that debt financing would be added back when calculating EBITDA. Adjusted EBITDAR and adjusted EBITDAR margin are presented solely as valuation measures and should not be viewed as measures of overall operating performance or considered in isolation or as an alternative to net income (loss) because they exclude the real estate rent expense associated with TA's leases and they are presented for the limited purposes referenced herein. TA calculates EBITDAR as net income (loss) before interest, income taxes, real estate rent expense and depreciation and amortization expense and adjusted EBITDAR by excluding items that it considers not to be normal, recurring, cash operating expenses or gains or losses. TA calculates adjusted EBITDAR margin as adjusted EBITDAR as a percentage of adjusted fuel gross margin and nonfuel revenues.

TA excluded the federal biodiesel blenders' tax credit when calculating its non-GAAP financial measures. In December 2019, the U.S. government retroactively reinstated the federal biodiesel blenders' tax credit for 2018 and 2019, as well as approved the federal biodiesel blenders' tax credit through 2022. As a result, the three and nine months ended September 30, 2019, do not include the benefit of the federal biodiesel blenders' tax credit and excluding the benefit for the three and nine months ended September 30, 2020, allows investors to better compare TA's performance between periods.

TA believes that net income (loss) is the most directly comparable GAAP financial measure to adjusted net income (loss), EBITDA, adjusted EBITDA and adjusted EBITDAR; net income (loss) per share of common stock attributable to common stockholders is the most directly comparable GAAP financial measure to adjusted net income (loss) per share of common stock attributable to common stockholders; fuel gross margin and nonfuel revenues are the most directly comparable GAAP financial measure to adjusted fuel gross margin and nonfuel revenues; and that fuel gross margin and fuel gross margin per gallon are the most directly comparable GAAP financial measures to adjusted fuel gross margin and adjusted fuel gross margin per gallon, respectively.

TRAVELCENTERS OF AMERICA INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share amounts)

The following tables present the reconciliations of the non-GAAP financial measures to the respective most directly comparable GAAP financial measures for the three and nine months ended September 30, 2020 and 2019.

Calculation of adjusted net income (loss):

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss)

 

$

8,657

 

 

$

1,872

 

 

$

(7,728

)

 

$

(9,648

)

Add: Impairment of property and equipment(1)

 

 

6,610

 

 

 

 

 

 

6,610

 

 

 

 

Add: Impairment of operating lease assets(1)

 

 

1,262

 

 

 

 

 

 

1,262

 

 

 

 

Add: Asset write offs(2)

 

 

2,372

 

 

 

 

 

 

8,906

 

 

 

 

Add: Reorganization Plan costs(3)

 

 

 

 

 

 

 

 

4,288

 

 

 

 

Add: Field employee bonus expense(4)

 

 

 

 

 

 

 

 

3,769

 

 

 

 

Add: Goodwill impairment(5)

 

 

 

 

 

 

 

 

3,046

 

 

 

 

Add: Executive compensation expense(6)

 

 

 

 

 

 

 

 

2,109

 

 

 

 

Less: Federal biodiesel blenders' tax credit(7)

 

 

(9,558

)

 

 

 

 

 

(20,788

)

 

 

 

Add: Costs of SVC transactions(8)

 

 

 

 

 

 

 

 

 

 

 

458

 

Less: Loyalty award expiration(9)

 

 

 

 

 

 

 

 

 

 

 

(2,911

)

(Less) add: Net income (loss) tax impact(10)

 

 

(173

)

 

 

 

 

 

(2,319

)

 

 

618

 

Adjusted net income (loss)

 

$

9,170

 

 

$

1,872

 

 

$

(845

)

 

$

(11,483

)

Calculation of adjusted net income (loss) per share of common stock attributable to common stockholders (basic and diluted):

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss) per share of common stock attributable to common stockholders (basic and diluted)

 

$

0.61

 

 

$

0.23

 

 

$

(0.76

)

 

$

(1.20

)

Add: Impairment of property and equipment(1)

 

0.47

 

 

 

 

0.64

 

 

 

Add: Impairment of operating lease assets(1)

 

0.09

 

 

 

 

0.12

 

 

 

Add: Asset write offs(2)

 

0.17

 

 

 

 

0.87

 

 

 

Add: Reorganization Plan costs(3)

 

 

 

 

 

0.42

 

 

 

Add: Field employee bonus expense(4)

 

 

 

 

 

0.37

 

 

 

Add: Goodwill impairment(5)

 

 

 

 

 

0.30

 

 

 

Add: Executive compensation expense(6)

 

 

 

 

 

0.21

 

 

 

Less: Federal biodiesel blenders' tax credit(7)

 

(0.68

)

 

 

 

(2.03

)

 

 

Add: Costs of SVC transactions(8)

 

 

 

 

 

 

 

0.06

 

Less: Loyalty award expiration(9)

 

 

 

 

 

 

 

(0.36

)

(Less) add: Net income (loss) tax impact(10)

 

(0.01

)

 

 

 

(0.23

)

 

0.07

 

Adjusted net income (loss) per share of common stock attributable to common stockholders (basic and diluted)

 

$

0.65

 

 

$

0.23

 

 

$

(0.09

)

 

$

(1.43

)

 

Calculation of adjusted fuel gross margin and nonfuel revenues:

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Fuel gross margin

 

$

80,123

 

 

$

79,458

 

$

253,978

 

 

$

231,027

 

Nonfuel revenues

 

474,097

 

 

492,089

 

1,304,674

 

 

1,409,045

 

Total fuel gross margin and nonfuel revenues

 

554,220

 

 

571,547

 

1,558,652

 

 

1,640,072

 

Less: Federal biodiesel blenders' tax credit(7)

 

(9,558

)

 

 

(20,788

)

 

 

Less: Loyalty award expiration(9)

 

 

 

 

 

 

(2,911

)

Adjusted fuel gross margin and nonfuel revenues

 

$

544,662

 

 

$

571,547

 

$

1,537,864

 

 

$

1,637,161

 

Calculation of EBITDA, adjusted EBITDA and adjusted EBITDAR:

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Net income (loss)

 

$

8,657

 

 

$

1,872

 

 

$

(7,728

)

 

$

(9,648

)

Add (less): Provision (benefit) for income taxes

 

1,432

 

 

(1,150

)

 

(4,222

)

 

(6,819

)

Add: Depreciation and amortization expense

 

32,299

 

 

24,146

 

 

89,113

 

 

72,118

 

Add: Interest expense, net

 

7,375

 

 

7,048

 

 

22,064

 

 

21,262

 

EBITDA

 

49,763

 

 

31,916

 

 

99,227

 

 

76,913

 

Add: Impairment of operating lease assets(1)

 

1,262

 

 

 

 

1,262

 

 

 

Add: Reorganization Plan costs(3)

 

 

 

 

 

4,288

 

 

 

Add: Field employee bonus expense(4)

 

 

 

 

 

3,769

 

 

 

Add: Executive compensation expense(6)

 

 

 

 

 

2,109

 

 

 

Less: Federal biodiesel blenders' tax credit(7)

 

(9,558

)

 

 

 

(20,788

)

 

 

Add: Costs of SVC transactions(8)

 

 

 

 

 

 

 

458

 

Less: Loyalty award expiration(9)

 

 

 

 

 

 

 

(2,911

)

Adjusted EBITDA

 

41,467

 

 

31,916

 

 

89,867

 

 

74,460

 

Add: Real estate rent expense

 

65,226

 

 

63,911

 

 

191,893

 

 

194,094

 

Less: Impairment of operating lease assets(1)

 

(1,262

)

 

 

 

(1,262

)

 

 

Adjusted EBITDAR

 

$

105,431

 

 

$

95,827

 

 

$

280,498

 

 

$

268,554

 

Calculation of adjusted EBITDAR margin:

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Adjusted EBITDAR(11)

 

$

105,431

 

 

$

95,827

 

 

$

280,498

 

 

$

268,554

 

Adjusted fuel gross margin and nonfuel revenues(11)

 

544,662

 

 

571,547

 

 

1,537,864

 

 

1,637,161

 

Adjusted EBITDAR margin

 

19.4

%

 

16.8

%

 

18.2

%

 

16.4

%

(11)

Reconciliations from net income (loss) and fuel gross margin and nonfuel revenues, the financial measures determined in accordance with GAAP to the non-GAAP measures disclosed herein, are included in the supplemental tables above.

 

Calculation of adjusted fuel gross margin

and adjusted fuel gross margin per gallon:

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2020

 

2019

 

2020

 

2019

Fuel gross margin

 

$

80,123

 

 

$

79,458

 

 

$

253,978

 

 

$

231,027

 

Less: Federal biodiesel blenders' tax credit(7)

 

(9,558

 

 

 

(20,788

 

 

Less: Loyalty award expiration(9)

 

 

 

 

 

 

 

(2,840

Adjusted fuel gross margin

 

$

70,565

 

 

$

79,458

 

 

$

233,190

 

 

$

228,187

 

 

 

 

 

 

 

 

 

 

 

Fuel gross margin per gallon

 

$

0.144

 

 

$

0.155

 

 

$

0.167

 

 

$

0.155

 

Less: Federal biodiesel blenders' tax credit(7)

 

(0.017

)

 

 

 

(0.014

 

 

Less: Loyalty award expiration(9)

 

 

 

 

 

 

 

(0.002

Adjusted fuel gross margin per gallon

 

$

0.127

 

 

$

0.155

 

 

$

0.153

 

 

$

0.153

 

(1)

Impairment of Property and Equipment and Operating Lease Assets. During the three and nine months September 30, 2020, TA recognized $6.6 million and $1.3 million of impairment charges to property and equipment and operating lease assets, respectively, related to certain standalone QSL restaurants. The impairment charges were recognized in depreciation and amortization expense and real estate rent expense, respectively, in TA's consolidated statements of operations and comprehensive income (loss).

(2)

Asset Write Offs. During the three and nine months ended September 30, 2020, TA wrote off $2.4 million and $8.1 million, respectively, related to programs that were canceled. During the nine months ended September 30, 2020, TA wrote off $0.8 million of intangibles relating to three QSL franchises that closed in April 2020. These amounts were included in depreciation and amortization expense in TA's consolidated statements of operations and comprehensive income (loss).

(3)

Reorganization Plan Costs. On April 30, 2020, TA commenced a company-wide Reorganization Plan. During the nine months ended September 30, 2020, TA recognized $4.3 million of costs related to the Reorganization Plan, which were included in selling, general and administrative expense in TA's consolidated statements of operations and comprehensive income (loss).

(4)

Field Employee Bonus Expense. In March and April 2020, TA paid cash bonuses to certain employees who continued to work at its locations during the COVID-19 pandemic. These bonuses resulted in additional compensation expense of $3.8 million for the nine months ended September 30, 2020, which were included in site level operating expense in TA's consolidated statements of operations and comprehensive income (loss).

(5)

Goodwill Impairment. During the nine months ended September 30, 2020, TA recognized a goodwill impairment charge of $3.0 million with respect to its QSL reporting unit, which was recognized in depreciation and amortization expense in TA's consolidated statements of operations and comprehensive income (loss).

(6)

Executive Compensation Expense. TA agreed to accelerate the vesting of previously granted stock awards and make cash payments as part of TA's retirement and separation agreements with certain former executive officers. The accelerations and cash payments resulted in additional compensation expense of $2.1 million for the nine months ended September 30, 2020, which were included in selling, general and administrative expense in TA's consolidated statements of operations and comprehensive income (loss).

(7)

Federal Biodiesel Blenders' Tax Credit. In December 2019, the U.S. government retroactively reinstated the federal biodiesel blenders' tax credit for 2018 and 2019, as well as approved the federal biodiesel blenders' tax credit through 2022. As a result, TA recognized $9.6 million and $20.8 million for the three and nine months ended September 30, 2020, respectively, which were recognized as a reduction to fuel cost of goods sold in TA's consolidated statements of operations and comprehensive income (loss).

(8)

Costs of SVC Transactions. In January 2019, TA and SVC amended their leases and completed certain other related transactions. During the nine months ended September 30, 2019, TA incurred $0.5 million of expenses associated with these transactions. These expenses were included in selling, general and administrative expense in TA's consolidated statements of operations and comprehensive income (loss).

(9)

Loyalty Award Expiration. During the nine months ended September 30, 2019, TA introduced a new customer loyalty program, UltraONE 2.0. As a result of introducing the new customer loyalty program, certain loyalty awards earned under the program now expire in 10 days for all loyalty members. This update resulted in the immediate expiration of certain loyalty awards upon adoption of the new customer loyalty program, generating $2.9 million of additional revenue during the nine months ended September 30, 2019, $2.8 million of which was recognized as fuel revenues and $0.1 million as nonfuel revenues in TA's consolidated statements of operations and comprehensive income (loss).

(10)

Net Income (Loss) Tax Impact. TA calculated the income tax impact of the adjustments described above by using its estimated statutory income tax rate of 25.2% for the three and nine months ended September 30, 2020 and 2019.

 

 


Contacts

Contact:
Kristin Brown, Director of Investor Relations
(617) 796-8251
www.ta-petro.com


Read full story here

DUBLIN--(BUSINESS WIRE)--The "United States Completion Equipment and Services Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.


The United States completion equipment and services market is expected to grow at a CAGR of more than 2% over the period of 2020-2025.

Factors such as increasing production from conventional and unconventional resources and reducing maintenance costs of the well are expected to drive the market. However, volatility in the crude oil and natural gas prices leading to decreasing exploration and production activities may restrain the growth of the market.

Shale oil and gas production is expected to drive the market in the forecast period. The complexity of production and multilateral drilling and production from the well requires high quality of well completion and its services, which is expected to aid the market.

New development in the intelligent well completion technology, like the advancements in the high-end self-adaptive inflow control completion technology, is expected to make the oil and gas production more viable and may provide an opportunity for market players.

Crude oil and natural gas production are expected to continue to be a vital part of meeting global energy demand, and the offshore segment is expected to witness significant growth in the forecast period. Increasing advancements in technologies are expected to aid the growth of the segment.

Key Market Trends

Shale Oil and Gas Production to Drive the Market

The United States was the largest producer of crude oil in the world, in 2019. It is also among the largest user of well completion techniques, which, among others, are used in the economically viable recovery of unconventional sources of hydrocarbons in the country's shale plays. This is because shale oil and gas reservoirs are more complex to handle and tend to mature faster than conventional wells. Therefore, unconventional reservoirs require higher usage of well completion tools and services to produce the oil.

  • Shale gas production in the United States is estimated by the Energy Information Administration to be around 69.19 billion cubic feet, in 2019. The production is expected to increase further in the forecast period and aid the growth of the United States completion equipment and services market.
  • Using advanced approaches like increasing treatment sizes, the move away from crosslinked gels to slickwater fracks, and increasing proppant intensity as the primary drivers behind enhanced well completions. Advancement in the technology for shale oil and gas reservoir is expected to grow the production and aid the completion equipment and services market.
  • The maximum gas recovery factor from shale gas reservoirs is low compared with conventional reservoirs. Therefore, more wells are required to be drilled to produce an equal amount of oil in a time period. Moreover, Continued innovation in the well completion stages is expected to make the equipment more reliable, thereby increasing the usage of well completion methods like gravel packers over acidization.
  • Shale oil and gas are expected to drive the market in the forecast period due to an increase in production, advancements in technologies, and high efficiency in aiding the production of oil and gas.

Offshore Segment to Witness Significant Growth

In the offshore segment, where the well intervention is expensive and high-risk, well completions equipment and services have proven their value in managing production from multilateral wells, horizontal wells with multiple zones, wells in heterogeneous reservoirs, and mature reservoirs. Further advancements in the technologies are expected to aid the growth of the market.

  • The completion equipment improvements have incorporated new paradigms in the sector like intelligent or smart well completion. Intelligent completions include permanent downhole sensors that transmit data to surface for local or remote monitoring in a digital well platform. All these data may or may not be automated but deliver to increase the production of the well. These systems are being used in the offshore segment as a method to decrease the production of water from the wells.
  • In 2019, Emerson, in partnership with Metrol, a leader in battery-powered wireless well monitoring, has launched the Intelligent Multistage Completion Network and integrated upper and lower completions downhole solution that communicates wirelessly with instruments at the reservoir sand face, the physical interface between the formation and the wellbore. This is enabled by a new wireless interface that generates crucial zonal flow information and sand face monitoring in the lower completion. Further advancements in the market are expected to create more reliability and growth in the market.
  • Offshore accounted for 4.33% of the total number of rotary rigs in the United States. Increasing prospects in the Gulf of Mexico due to the growing number of natural gas infrastructure projects and the ever-increasing demand for natural gas in the country are expected to aid the growth of the offshore segment.
  • Chevron and Total have sanctioned the Anchor project in the U.S. Gulf of Mexico. The Anchor project is the industry's first deepwater high-pressure development to achieve a final investment decision (FID). Advancement of the new technology in well completion and production, which is capable of handling pressures of 20,000 psi, enables access to other high-pressure resource opportunities across the Gulf of Mexico, thereby attributing to the growth of the market.
  • Hence, the offshore segment is expected to be the fastest-growing segment in the forecast period due to an increase in free cash flow, advancement in technology, and an increase in oil production.

Competitive Landscape

The United States completion equipment and services market is moderately fragmented. Some of the key players in this market are Schlumberger Ltd., Halliburton Company, Baker Hughes Company Weatherford International plc, and National-Oilwell Varco Inc.

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DALLAS--(BUSINESS WIRE)--HSB Solomon Associates LLC (Solomon) announced today that it has been named a recipient of the Sustainability Partnership Award for extraordinary performance in the 5th Annual Supplier Recognition Awards, awarded by Marathon Petroleum Corporation (MPC). The Supplier Recognition Awards is a program sponsored by MPC designed to honor suppliers who positively impacted the company’s business throughout the previous calendar year.


About Marathon Petroleum Corporation

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. Speedway LLC, an MPC subsidiary, owns and operates retail convenience stores across the United States. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.

About Solomon Associates

HSB Solomon Associates LLC (Solomon) provides data-driven, strategic insight across the energy industry, leading to greater efficiency, reliability, and profitability. We draw upon the world’s most extensive, historical, and proprietary database of operational performance, and combine that knowledge with a library of industry best practices and industry experts that understand your business. This combination allows us to identify operational gaps and deliver insight and solutions to close those gaps and improve results, connecting data to business strategy and sustained performance excellence. Solomon is part of the HSB family of companies and serves clients in nearly 80 countries, with global headquarters in Dallas and regional offices in Houston, London, Manama, and Singapore. More information about Solomon Associates is available at www.solomoninsight.com

Learn how Solomon helps clients reduce energy-related carbon emissions at www.solomoninsight.com/sustainability.


Contacts

Media Relations
Solomon Associates
Greg Bogdan, Marketing Director
Tel.: +1.713.985.5183
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DUBLIN--(BUSINESS WIRE)--The "China Bunker Fuel Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.


The China bunker fuel market is expected to grow at a CAGR of around 4.5% during the forecast period.

Factors such as high trade activities with major economies across the globe is expected to drive the market. However, as the country is a net exporter to a diversified destination, so with the outbreak of COVID-19, the global economic slowdown had a significant negative impact on the Chinese maritime industry during 2020. With the slow recovery from COVID-19 in some major export, destinations are likely to hinder the market growth during the forecast period.

Trade tension between the United States and China is likely to have a negative impact on the Chinese maritime business and the country's bunker fuel market during the forecast period.

Chinese Ministry of Transport plans for building infrastructure and utilizing LNG as a marine fuel by 2025 is likely to create an opportunity for the LNG marine fuel growth in the near future.

The container vessels held a significant market share in 2019, and is likely to continue its dominance during the forecast period.

Key Market Trends

Trade Tensions between the United States and China is Likely to Restrain the Market Growth

Trade tension began between the United States and China due to high tariffs imposed and other trade barriers on Chinese goods by the United States government in 2018.

  • During 2018, the United States imposed a tariff of more than USD 360 billion on Chinese goods, and on retaliation, China imposed tariffs of more than USD 110 billion on United States' products.
  • The last tariff imposed by the United States was in September 2018 on food items and various other musical instruments. The trade war continued till June 2019, when the Chinese government imposed a tariff of USD 60 billion on the United States' goods.
  • The high tariff on both sides affected the trade and marine transportation between the countries and significantly affected the trade volume. In 2019, the trade volume of goods handled by the Chinese coastal ports decreased by nearly 0.3 billion metric tonnes compared to 9.46 billion metric tonnes in 2018.
  • With COVID-19 outbreak, the trade war took a new dimension. The United States government considered China a primary reason for the pandemic and accused the country of suppressing vital information regarding the first virus outbreak in China.
  • Though the conflict was not related to trading, the United States banned Chinese company, Huawei, from using United States' software and hardware in strategic semiconductor processes in May 2020. The United States also pressurized the European government to refrain from collaborating with Huawei. Thus, such a situation is expected to repeat the 2018 trade relation of the United States and China, which is likely to negatively affect the sea trade market and the marine fuel market during the forecast period.

Container Vessels to Witness Significant Growth

Container fleets are cargo ships with truck-size intermodal containers used to carry all the load. These are widely used for commercial intermodal freight transport. These are typically large, fast, and complex ships operated on a liner service.

  • The capacity of the container fleet is measured in Twenty-foot Equivalent Units (TEU). These container fleets hold a capacity of 20-foot to 40-foot (2-TEU). Modern container ships today hold the ability to carry over 19,000 TEU.
  • About 85% - 90% of the non-bulk cargo is transported through container fleets. The containerized form of freight is the preferred medium of transportation for various industrial products.
  • Container vessels are mostly operated on China and the United States sea route, which is mostly used to transport goods like meat, toys, electrical machinery, electronic goods, etc.
  • Ports that handle the highest number of container vessels in China are Shanghai, Shenzhen, Ningbo-Zhoushan, Guangzhou Harbor, Hong Kong, Qingdao, Tianjin, Kaohsiung, and few others. During 2019, the ports handled 231 million TEUs.
  • With increasing trade relation with countries like Greece and Israel, and on order five new 23,000 TEU containers vessels by Orient Overseas Container Line (OOCL), it is expected to have significant growth in containers vessels traffic in Chinese ports, which is likely to a positive impact on the market growth.

Key Topics Covered:

1 INTRODUCTION

2 EXECUTIVE SUMMARY

3 RESEARCH METHODOLOGY

4 MARKET OVERVIEW

4.1 Introduction

4.2 Market Size and Demand Forecast in USD billion, till 2025

4.3 Recent Trends and Developments

4.4 Government Policies and Regulations

4.5 Market Dynamics

4.5.1 Drivers

4.5.2 Restraints

4.6 Supply Chain Analysis

4.7 PESTLE Analysis

5 MARKET SEGMENTATION

5.1 Fuel Type

5.1.1 High Sulfur Fuel Oil (HSFO)

5.1.2 Very-low Sulfur Fuel Oil (VLSFO)

5.1.3 Marine Gas Oil (MGO)

5.1.4 Others

5.2 Vessel Type

5.2.1 Containers

5.2.2 Tankers

5.2.3 General Cargo

5.2.4 Bulk Carrier

5.2.5 Other Vessel Types

6 COMPETITIVE LANDSCAPE

6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

6.2 Strategies Adopted by Leading Players

6.3 Company Profiles

6.3.1 Fuel Suppliers

6.3.1.1 PetroChina Company Limited

6.3.1.2 Sinopec Fuel Oil Sales Co. Ltd

6.3.1.3 China Marine Bunker Co. Ltd.

6.3.1.4 Brightoil Petroleum (Holdings) Limited

6.3.2 Ship Owners

6.3.2.1 Cosco Shipping Lines Co Ltd

6.3.2.2 Orient Overseas Container Line (OOCL)

6.3.2.3 China Merchants Energy Shipping Co. Ltd

6.3.2.4 Sinotrans Limited

6.3.2.5 Parakou Group

6.3.2.6 Nan Fung Group

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

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RICHMOND, Va.--(BUSINESS WIRE)--Harris Williams, a global investment bank specializing in M&A advisory services, announces that it advised Veregy, a portfolio company of Bow River Capital, on its sale to Court Square Capital Partners (Court Square). Veregy is an energy services company (ESCO) that designs, engineers and implements eco-friendly building and system optimizations that minimize upfront costs and produce meaningful energy and operational savings. The transaction was led by Luke Semple, Drew Spitzer, Ian Thomas, Greg Waller and Trevor Casey of the Harris Williams Energy, Power & Infrastructure (EPI) Group.


“It was a pleasure to work with the Veregy team on this transaction,” said Drew Spitzer, a managing director at Harris Williams. “Veregy is a leader in delivering energy efficient solutions and is recognized throughout the industry for providing their clients with long-term value and best-in-class customer service.”

“ESCOs continue to operate at the forefront of the energy transition and Veregy has taken a leading role in driving customer adoption of energy efficient and renewable energy solutions,” added Luke Semple, a managing director at Harris Williams. “This transaction illustrates the strong market interest in scale service providers accelerating the energy transition.”

Veregy offers energy efficiency upgrades, building automation, engineering services, solar generation, battery storage and energy management to clients in both public and private sectors. With over 500 employees operating across the country, including more than 50 professional engineers, Veregy has the technical expertise to address customers’ most complex challenges. Veregy has optimized thousands of buildings and generated billions of dollars in real savings for its clients.

Bow River Capital is a private alternative asset management company based in Denver that is focused on investing in the lower middle market in three asset classes, including private equity, real estate and software growth equity. For more information on Bow River Capital, please visit www.bowrivercapital.com.

Court Square is a middle market private equity firm with one of the most experienced investment teams in the industry. Since 1979, the team has completed over 230 investments, including several landmark transactions, and has developed numerous businesses into leaders in their respective markets. Court Square invests in companies that have compelling growth potential within the business services, general industrial, healthcare, and technology and telecommunications sectors. The firm has $7.0 billion of assets under management and is based in New York.

Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).

The Harris Williams EPI Group has significant experience advising market leading providers of technology, services and products across a broad range of sectors. These sectors include energy management; infrastructure services; utility services; testing, inspection, and certification services; environmental services; engineering and construction; power products and technology; and energy technology. For more information on the Group’s experience, please visit the EPI Group’s section of the Harris Williams website.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: This email address is being protected from spambots. You need JavaScript enabled to view it.). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. awaited). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.


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