Global Partners LP (GLP, Financial) released its financial results for the third quarter ended September 30, 2023, revealing a net income of $26.8 million, or $0.60 per diluted common limited partner unit. This marks a significant decrease from the $111.4 million, or $3.12 per diluted common limited partner unit, reported in the same period last year. The company attributes the decline to a more normalized market compared to the exceptionally favorable conditions experienced in 2022.
Financial Performance Overview
Adjusted EBITDA for Q3 2023 was reported at $77.7 million, a decrease from the $168.5 million in Q3 2022. Distributable cash flow (DCF) also saw a decline, coming in at $42.2 million for the quarter, compared to $128.0 million in the previous year. Gross profit for the quarter was $228.5 million, down from $328.4 million in 2022. Total sales decreased to $4.2 billion in Q3 2023 from $4.6 billion in the same period last year.
Segment Performance and Challenges
The Gasoline Distribution and Station Operations (GDSO) segment product margin decreased to $206.5 million in Q3 2023 from $261.6 million in 2022. The Wholesale segment product margin also saw a reduction to $37.2 million from $79.3 million, primarily due to less favorable market conditions. The Commercial segment product margin was $8.4 million, a slight decrease from $10.4 million in the previous year.
Strategic Acquisitions and Business Outlook
Amidst the earnings report, GLP announced the signing of an asset purchase agreement to acquire 25 liquid energy terminals, which is expected to close by year-end. Eric Slifka, President and CEO of Global Partners, commented on the acquisition, stating,
This transaction will significantly strengthen and diversify our terminalling assets and allow Global to deliver additional value to wholesale, commercial and retail customers in new and existing markets."Looking ahead, GLP remains focused on growth through strategic mergers and acquisitions, asset optimization, and balanced capital allocation.
Expansion into Alternative Fuels
Global Partners has activated its first company-owned electric vehicle charging stations, marking a step forward in its alternative fuels strategy. This initiative aligns with the company's long-term vision to adapt to changing energy demands and diversify its service offerings.
For a more detailed analysis of Global Partners LP's financial results, including reconciliations of non-GAAP financial measures, please visit the full earnings release on Global Partners' investor relations website.
Investors and analysts are encouraged to review the full financial results and consider the company's performance in the context of the broader economic and market conditions. Global Partners LP will continue to monitor its business strategy and financial health in the upcoming quarters.
Explore the complete 8-K earnings release (here) from Global Partners LP for further details.
