Global Partners LP (GLP, Financial) filed Quarterly Report for the period ended 2012-06-30.
Global Partners Lp has a market cap of $646 million; its shares were traded at around $23.35 with a P/E ratio of 36.2. The dividend yield of Global Partners Lp stocks is 8.5%.
Our total sales for the six months ended June 30, 2012 increased by $1.0 billion, or 13%, to $7.9 billion compared to $6.9 billion for the same period in 2011 due to an increase in volume sold. Our aggregate volume of product sold was 2.7 billion gallons for the first half of 2012 compared to 2.5 billion gallons for the same period in 2011, an increase of 0.2 billion gallons, or 11%. The increase in volume sold includes increases of approximately 200 million gallons due to our acquisition in March 2012 of Alliance, 54 million gallons in our wholesale business, primarily due to increases in gasoline and to the addition of crude oil offset by a decrease in distillates due to warmer temperatures period over period, and 13 million gallons in our commercial business. Our gross profit for the six months ended June 30, 2012 was $146.0 million, an increase of $45.2 million, or 45%, compared to $100.8 million for same period in 2011, due primarily to the Alliance acquisition and the addition of crude oil. Despite the increase, our gross profit was negatively impacted by a challenging futures market, including backwardation, and less favorable buying opportunities in wholesale gasoline.
Gasoline and Gasoline Blendstocks. Sales from wholesale gasoline and gasoline blendstocks were flat at $2.0 billion for each of the three months ended June 30, 2012 and 2011. During the six months ended June 30, 2012, sales from wholesale gasoline and gasoline blendstocks were $3.9 billion compared to $3.7 billion for the same period in 2011. The increase of $0.2 billion, or 4%, for the first six months of 2012 was due primarily to an increase in volume sold which was attributable to an increase in demand for gasoline blendstocks, primarily ethanol. Our net product margin from wholesale gasoline sales decreased by $10.9 million to $6.7 million for the three months ended June 30, 2012 and by $6.8 million to $25.4 million for the six months ended June 30, 2012 compared to $17.6 million and $32.2 million for the respective periods in 2011. Our net product margins for wholesale gasoline were adversely impacted for the three and six months ended June 30, 2012 due primarily to a challenging futures market, including backwardation, less favorable buying opportunities and increased competition.
Gasoline Distribution. Sales from gasoline distribution were $0.8 billion and $0.4 billion for the three months ended June 30, 2012 and 2011, respectively, and $1.3 billion and $0.7 billion for the six months ended June 30, 2012 and 2011, respectively. The increases of $0.4 billion, or 114%, and $0.6 billion, or 95%, for the three and six months ended June 30, 2012, respectively, were due primarily to increases in volume sold as a result of our acquisition of Alliance and to a full six months of sales of Mobil-branded fuel to sub-jobbers pursuant to our brand fee agreement with ExxonMobil which began in March 2011. Our net product margin from gasoline distribution increased by $28.6 million to $43.5 million for the three months ended June 30, 2012 and by $31.3 million to $55.7 million for the six months ended June 30, 2012 compared to $14.9 million and $24.4 million for the same periods in 2011. The increases were due to the Alliance acquisition, declining gasoline prices during the second quarter 2012, the Getty Realty transaction and an increase in branded gasoline distribution activity. Despite the increase, our net product margin from gasoline distribution for the first six months of 2012 was negatively impacted due to rising gasoline prices during the first quarter of 2012.
Expansion capital expenditures include expenditures to acquire assets to grow our business or expand our existing facilities, such as projects that increase our operating capacity or revenues by increasing tankage, diversifying product availability at various terminals and adding terminals. We have the ability to fund our expansion capital expenditures through cash from operations or our credit agreement or by issuing additional equity. We had approximately $310.4 million and $2.9 million in expansion capital expenditures for the six months ended June 30, 2012 and 2011, respectively. Specifically, for the six months ended June 30, 2012, expansion capital expenditures included approximately $296.2 million associated with the purchase of Alliance, a portion of which was funded through equity and a portion was funded with cash. In addition we had $14.2 million in expansion capital expenditures which are included in capital expenditures in the accompanying consolidated statements of cash flows. The $14.2 million consists of $5.0 million in costs associated with a build-out project to increase the rail receipt and throughput storage capacities of ethanol and crude oil and converting certain storage tanks for the handling of crude oil at our Albany, New York terminal, $2.6 million in costs related to tank construction at a transloading facility in North Dakota for the storage and handling of crude oil, $2.6 million in costs associated with the building of a propane storage and distribution facility in Albany, New York, $2.4 million in site expansion and improvements at certain retail gas stations, $0.6 million in costs related to information technology, including increases in storage and computing capacity, $0.5 million in costs to acquire land for future development and $0.5 million in other expansion capital expenditures.
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Global Partners Lp has a market cap of $646 million; its shares were traded at around $23.35 with a P/E ratio of 36.2. The dividend yield of Global Partners Lp stocks is 8.5%.
Highlight of Business Operations:
Our total sales for the three months ended June 30, 2012 increased by $0.5 billion, or 15%, to $3.9 billion compared to $3.4 billion for the same period in 2011, primarily due to an increase in volume sold. Our aggregate volume of product sold was 1.3 billion gallons for the second quarter of 2012 compared to 1.1 billion gallons for the same period in 2011, an increase of 0.2 billion gallons, or 21%. The increase in volume sold includes increases of approximately 152 million gallons primarily due to our acquisition in March 2012 of Alliance, 73 million gallons in our wholesale business, primarily due to increases in gasoline and to the addition of crude oil offset by a decrease in distillates due to warmer temperatures period over period, and 17 million gallons in our commercial business. Our gross profit for the second quarter of 2012 was $90.7 million, an increase of $46.1 million, or 103%, compared to $44.6 million for the second quarter of 2011, due primarily to the Alliance acquisition, the addition of crude oil and favorable purchasing opportunities in distillates. Despite the increase, our gross profit was negatively impacted by a challenging futures market, including backwardation, and less favorable buying opportunities in wholesale gasoline.Our total sales for the six months ended June 30, 2012 increased by $1.0 billion, or 13%, to $7.9 billion compared to $6.9 billion for the same period in 2011 due to an increase in volume sold. Our aggregate volume of product sold was 2.7 billion gallons for the first half of 2012 compared to 2.5 billion gallons for the same period in 2011, an increase of 0.2 billion gallons, or 11%. The increase in volume sold includes increases of approximately 200 million gallons due to our acquisition in March 2012 of Alliance, 54 million gallons in our wholesale business, primarily due to increases in gasoline and to the addition of crude oil offset by a decrease in distillates due to warmer temperatures period over period, and 13 million gallons in our commercial business. Our gross profit for the six months ended June 30, 2012 was $146.0 million, an increase of $45.2 million, or 45%, compared to $100.8 million for same period in 2011, due primarily to the Alliance acquisition and the addition of crude oil. Despite the increase, our gross profit was negatively impacted by a challenging futures market, including backwardation, and less favorable buying opportunities in wholesale gasoline.
Gasoline and Gasoline Blendstocks. Sales from wholesale gasoline and gasoline blendstocks were flat at $2.0 billion for each of the three months ended June 30, 2012 and 2011. During the six months ended June 30, 2012, sales from wholesale gasoline and gasoline blendstocks were $3.9 billion compared to $3.7 billion for the same period in 2011. The increase of $0.2 billion, or 4%, for the first six months of 2012 was due primarily to an increase in volume sold which was attributable to an increase in demand for gasoline blendstocks, primarily ethanol. Our net product margin from wholesale gasoline sales decreased by $10.9 million to $6.7 million for the three months ended June 30, 2012 and by $6.8 million to $25.4 million for the six months ended June 30, 2012 compared to $17.6 million and $32.2 million for the respective periods in 2011. Our net product margins for wholesale gasoline were adversely impacted for the three and six months ended June 30, 2012 due primarily to a challenging futures market, including backwardation, less favorable buying opportunities and increased competition.
Gasoline Distribution. Sales from gasoline distribution were $0.8 billion and $0.4 billion for the three months ended June 30, 2012 and 2011, respectively, and $1.3 billion and $0.7 billion for the six months ended June 30, 2012 and 2011, respectively. The increases of $0.4 billion, or 114%, and $0.6 billion, or 95%, for the three and six months ended June 30, 2012, respectively, were due primarily to increases in volume sold as a result of our acquisition of Alliance and to a full six months of sales of Mobil-branded fuel to sub-jobbers pursuant to our brand fee agreement with ExxonMobil which began in March 2011. Our net product margin from gasoline distribution increased by $28.6 million to $43.5 million for the three months ended June 30, 2012 and by $31.3 million to $55.7 million for the six months ended June 30, 2012 compared to $14.9 million and $24.4 million for the same periods in 2011. The increases were due to the Alliance acquisition, declining gasoline prices during the second quarter 2012, the Getty Realty transaction and an increase in branded gasoline distribution activity. Despite the increase, our net product margin from gasoline distribution for the first six months of 2012 was negatively impacted due to rising gasoline prices during the first quarter of 2012.
Expansion capital expenditures include expenditures to acquire assets to grow our business or expand our existing facilities, such as projects that increase our operating capacity or revenues by increasing tankage, diversifying product availability at various terminals and adding terminals. We have the ability to fund our expansion capital expenditures through cash from operations or our credit agreement or by issuing additional equity. We had approximately $310.4 million and $2.9 million in expansion capital expenditures for the six months ended June 30, 2012 and 2011, respectively. Specifically, for the six months ended June 30, 2012, expansion capital expenditures included approximately $296.2 million associated with the purchase of Alliance, a portion of which was funded through equity and a portion was funded with cash. In addition we had $14.2 million in expansion capital expenditures which are included in capital expenditures in the accompanying consolidated statements of cash flows. The $14.2 million consists of $5.0 million in costs associated with a build-out project to increase the rail receipt and throughput storage capacities of ethanol and crude oil and converting certain storage tanks for the handling of crude oil at our Albany, New York terminal, $2.6 million in costs related to tank construction at a transloading facility in North Dakota for the storage and handling of crude oil, $2.6 million in costs associated with the building of a propane storage and distribution facility in Albany, New York, $2.4 million in site expansion and improvements at certain retail gas stations, $0.6 million in costs related to information technology, including increases in storage and computing capacity, $0.5 million in costs to acquire land for future development and $0.5 million in other expansion capital expenditures.
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