Quarterly / Earnings Reports | Third Quarter (3Q) Update

Martin Midstream Partners Reports Third Quarter 2020

Share Print Bookmark    |    Wednesday,October 21,2020

Martin Midstream Partners L.P. announced its financial results for the third quarter of 2020.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, “The Partnership delivered strong results in the third quarter even with the continuing impact on demand related to COVID-19 coupled with hurricanes in the Gulf Coast region effecting refinery operations.  The diversity of our business model and customer base has proven resilient in these difficult and changing macro-economic times.  Although the third quarter is typically our weakest, due to the cyclical nature of our businesses, we had year over year EBITDA growth in three of our four business segments.  Our team continues to make every effort to provide our employees and customers with a safe and healthy operating environment.”

Q3 Results by Segment

TERMINALLING AND STORAGE

T&S Operating Income for the three months ended September 30, 2020 and 2019 was $7.0 million and $5.6 million, respectively.

Adjusted segment EBITDA for T&S was $14.2 million and $13.3 million for the three months ended September 30, 2020 and 2019, respectively, reflecting improved margins on packaged lubricants products from lower production cost and operating efficiencies, reduced operating expenses from lower repairs and maintenance and labor cost at our Specialty Terminals, offset by reduced grease volumes related to lower demand in the oil field and construction industries due to COVID-19, expired capital recovery fees at the Smackover Refinery and decreased fees related to a crude pipeline gathering rate adjustment.

TRANSPORTATION

Transportation Operating Income for the three months ended September 30, 2020 and 2019 was $1.1 million and $4.4 million, respectively.

Adjusted segment EBITDA for Transportation was $5.5 million and $8.2 million for the three months ended September 30, 2020 and 2019, respectively, reflecting lower marine utilization and reduced day rates along with lower land transportation load count related to demand destruction and lower refinery utilization as a result of COVID-19 and gulf coast hurricanes experienced during the three months ended September 30, 2020. 

SULFUR SERVICES

Sulfur Services Operating Income for the three months ended September 30, 2020 and 2019 was $5.6 million and $0.3 million, respectively.

Adjusted segment EBITDA for Sulfur Services was $4.2 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively, reflecting resumed operations of the Neches Priller offset by reduced fertilizer volumes from extended fertilizer plant turnaround time and reduced fertilizer demand as a result of COVID-19.

NGLS

NGL Operating Income for the three months ended September 30, 2020 and 2019 was $1.8 million and $19.7 million, respectively.

Adjusted segment EBITDA from continuing operations for NGL was $2.8 million and $1.6 million for the three months ended September 30, 2020 and 2019, respectively, primarily reflecting an increase in volumes in 2020 from increased seasonal demand within the butane optimization business.