HOUSTON - Genesis Energy, L.P. (NYSE: NYSE:GEL) has announced a net loss attributable to common unitholders of -$0.09 per share for the first quarter of 2024, which was below the analyst consensus estimate of $0.02 per share. The company's revenue for the quarter was reported at $770.11 million.
The first quarter results showed a significant turnaround from a net loss of $1.6 million in the same quarter last year to a net income of $11.4 million this year. However, the company's revenue saw a decrease from the previous year's $790.61 million, marking a decline in the face of expectations.
Genesis Energy's CEO, Grant Sims, commented on the results, "We are pleased with the financial performance of our businesses for the quarter, as our reported Adjusted EBITDA of $163.1 million was generally in-line with our internal expectations." He also expressed optimism about the future, citing an important inflection point approaching as the company completes its major capital spending program and anticipates a notable step change in the financial performance of its offshore assets.
In the offshore pipeline transportation segment, the company reported a slight decrease in Segment Margin, primarily due to an increase in producer downtime and operating costs. However, the Argos Floating Production System, which supports BP (NYSE:BP)'s operated Mad Dog 2 field development, began producing in the second quarter of 2023 and has since ramped up production levels.
The soda and sulfur services segment experienced a decrease in Segment Margin due to lower export pricing and operational issues that led to lower production volumes and reduced operating efficiencies. Despite these challenges, the Westvaco facility is back to running at full capacity, and the Granger expansion is expected to overcome commissioning challenges in the second quarter.
The marine transportation segment outperformed expectations, with Segment Margin increasing by 22% from the previous year's quarter, primarily due to higher day rates in the inland and offshore businesses.
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