Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tidewater Midstream and Infrastructure Ltd (TWMIF, Financial) announced an agreement to purchase the North segment of Pembina Western pipeline, which is expected to provide a reliable and lower-cost source of feedstock.
- The company has made significant progress in marketing its diesel and gasoline volumes, transitioning to in-house marketing after the expiration of a previous offtake agreement.
- Tidewater Midstream and Infrastructure Ltd (TWMIF) completed the sale of the BRC roadway network for $24 million, using $22.5 million to repay outstanding debt, aiding in deleveraging efforts.
- The company is seeing positive demand for processing capacity at the Brazil River Complex and anticipates potential announcements regarding increased volumes.
- Tidewater Midstream and Infrastructure Ltd (TWMIF) has built up a significant inventory of BCL CFS credits, providing leverage for liquidity management.
Negative Points
- The company reported a consolidated net loss attributable to shareholders of $31.8 million in Q1 2025, significantly higher than the $11.3 million loss in Q1 2024.
- Consolidated adjusted EBITDA was negative $3.7 million in Q1 2025, a sharp decline from $39.8 million in Q1 2024, primarily due to lower refined product sales and margins.
- The Prince George Refinery throughput was 20% lower than the first quarter of 2024, affected by third-party facility and pipeline maintenance.
- The Canadian International Trade Tribunal terminated its preliminary injury inquiry regarding Tidewater Renewables' complaint about imports of renewable diesel from the United States, a setback for the company.
- The Brazil River Complex experienced lower throughput due to an outage and discontinuation of sour gas processing, impacting overall performance.
Q & A Highlights
Q: Can you provide an update on your non-core asset sale program for the year? Are these processes still live given the macro uncertainties?
A: We have been successful with the BRC roads sale and continue to make progress on other potential transactions. We are still on track to achieve the $100 million target, inclusive of the BRC roads sale. We will announce further transactions at the appropriate time. - Jeremy Bains, CEO
Q: What other sources of liquidity might you be considering given the uncertainty around commodity prices?
A: Besides asset sales, we have built up a significant inventory of BCL CFS credits at attractive prices. We are also selling inventory from the PGR facility, with sales increasing significantly each month. We continue to manage cash flows prudently. - Jeremy Bains, CEO
Q: Regarding the acquisition of the northern segment of the Western pipeline, how does this affect your maintenance capital program?
A: The pipeline is younger than many others and has been well-maintained. We expect to continue run-rate capital similar to past expenditures. We anticipate OpEx savings of $10 to $15 million, inclusive of maintenance capital. - Jeremy Bains, CEO
Q: Can you provide more clarity on the quarter-over-quarter EBITDA decline and the outlook?
A: The decline was due to lower volumes and margins. We expect volumes and margins to improve starting in Q2, as the operating environment becomes more favorable. - Aaron Ames, Interim CFO
Q: Are there any other similar investment or cost-saving opportunities like the Western pipeline acquisition?
A: This was a strategic asset for us, and while we have other smaller opportunities, this deal was unique. We are always looking for opportunistic investments with good returns. - Jeremy Bains, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
