USD Partners LP sees second quarter revenues come in at $29.58m compared to $27m in the same period last year.
On June 26, 2018, the partnership announced that it had entered into a multi-year renewal and extension of approximately 25% of the capacity at its Hardisty rail terminal with one of its existing investment grade customers. The renewal contains consistent take-or-pay terms with minimum monthly payments and rates that exceed those of the original terminalling services agreement.
As previously mentioned, customer activity at the Hardisty origination terminal has increased substantially over the last several months.
Current market demand for the services provided at the Hardisty terminal exceeds the available capacity, as substantially all of the terminal’s capacity was previously contracted by customers under multi-year agreements through mid-2019 or mid-2020. As a result, the partnership’s sponsor is evaluating a potential expansion to meet customer demand. The partnership is also actively negotiating with current customers to extend the terms of their existing take-or-pay agreements.
On June 7, 2018, USD Group LLC and the partnership announced that USDG had executed a five-year, take-or-pay terminalling services agreement with a high quality refiner customer. The agreement is for trans-loading capacity at the Hardisty rail terminal with an expected start date in late 2018. This new agreement could support the construction of additional capacity at the Hardisty terminal pursuant to USDG’s existing development rights.
The partnership’s results during the second quarter of 2018 relative to the same quarter in 2017 were primarily influenced by additional revenues and costs related to the commencement of operations at the Stroud terminal in October 2017 and the conclusion of customer agreements at the Partnership’s San Antonio facility in May 2017 and its Casper terminal in August 2017. In addition, as a result of a substantial increase in customer activity at its Hardisty terminal, the Partnership incurred additional operating costs during the second quarter of 2018.
For more information, visit: www.usdpartners.com
8th August 2018
