Global Partners LP Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-08
Global Partners LP Reports Second Quarter 2024 Financial Results
Global Partners LP (NYSE: GLP) reported its financial results for the second quarter ended June 30, 2024. Below is a detailed summary of the key financial and operational metrics, including year-over-year and quarter-over-quarter comparisons and professional interpretations.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $4.4 Billion | $3.8 Billion | +15.8% | $5.51 Billion |
| Net Income | $46.1 Million | $41.4 Million | +11.4% | Not provided |
| Earnings per Share (EPS) | $1.10 | $1.05 | +4.8% | $1.50 |
| EBITDA | $118.8 Million | $90.7 Million | +30.9% | Not provided |
| Adjusted EBITDA | $121.1 Million | $90.4 Million | +34.0% | Not provided |
| Distributable Cash Flow (DCF) | $73.1 Million | $54.8 Million | +33.4% | Not provided |
Interpretation: Global Partners LP has reported robust year-over-year growth across key financial metrics, with a notable 30.9% increase in EBITDA and a 33.4% increase in Distributable Cash Flow (DCF). While EPS grew by 4.8%, it fell short of the Wall Street consensus estimate of $1.50. Total revenue also came in under consensus at $4.4 billion against the estimated $5.51 billion. Overall, the company’s results highlight the effectiveness of its integrated business model and diversified portfolio.
Segment Revenue Performance
| Segment | Q2 2024 Sales | Q2 2023 Sales | % Change |
|---|---|---|---|
| Gasoline Distribution and Station Operations (GDSO) | $1.5 Billion | $1.5 Billion | 0% |
| Wholesale | $2.6 Billion | $2.1 Billion | +23.8% |
| Commercial | $280.9 Million | $226.5 Million | +24.0% |
Interpretation: The Wholesale segment saw the most substantial growth, driven by strategic acquisitions and favorable market conditions for gasoline and gasoline blendstocks. The Commercial segment also experienced strong growth. However, the GDSO segment showed no change in total sales revenue, underlining performance stability in this area.
Operational Data
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Volume | 1.6 Billion Gals | 1.3 Billion Gals | +23.1% |
| Wholesale Volume | 1.1 Billion Gals | 809.6 Million Gals | +35.9% |
| GDSO Volume | 407.0 Million Gals | 417.4 Million Gals | -2.5% |
| Commercial Volume | 119.5 Million Gals | 102.5 Million Gals | +16.6% |
Interpretation: An increase in total volume, particularly in the Wholesale and Commercial segments, underscores Global's efforts to expand and utilize its asset base effectively. However, a slight decline in the GDSO segment volume indicates a minor challenge in this area.
Comments from Company Officers
Eric Slifka, President and CEO, highlighted the company's year-over-year growth and strategic investments, noting the successful acquisition of 29 terminals that more than doubled storage capacity. Slifka emphasized Global’s solidified position for sustained growth and value creation for unitholders.
Dividends
Global Partners announced a cash distribution of $0.7200 per unit ($2.88 per unit annualized) for the period from April 1, 2024, to June 30, 2024. The distribution will be paid on August 14, 2024, to unitholders of record as of August 8, 2024.
Forward Guidance
The earnings release did not provide specific forward guidance.
Stock Price Movement
Following the earnings release, Global Partners' stock price experienced an increase of 0.66%.
Summary: Global Partners LP delivered solid financial growth and operational expansion in the second quarter of 2024, underpinned by strategic acquisitions and a robust business model. Despite missing revenue and EPS estimates, the company’s strong EBITDA and DCF growth reflect its potential for sustained performance.
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