{"id":755557,"date":"2023-05-05T08:13:39","date_gmt":"2023-05-05T12:13:39","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/global-partners-reports-first-quarter-2023-financial-results\/"},"modified":"2023-05-05T08:13:39","modified_gmt":"2023-05-05T12:13:39","slug":"global-partners-reports-first-quarter-2023-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/global-partners-reports-first-quarter-2023-financial-results\/","title":{"rendered":"Global Partners Reports First-Quarter 2023 Financial Results"},"content":{"rendered":"

<\/p>\n

Global Partners Reports First-Quarter 2023 Financial Results<\/b><\/p>\n

WALTHAM, Mass.–(BUSINESS WIRE<\/a>)–
\nGlobal Partners LP (NYSE: GLP) (\u201cGlobal\u201d or the \u201cPartnership\u201d) today reported financial results for the first quarter ended March 31, 2023.<\/p>\n

\n\u201cThe Global team executed well in the first quarter, posting results in line with our expectations,\u201d said Eric Slifka, the Partnership\u2019s President and Chief Executive Officer. \u201cContinued momentum in our Gasoline Distribution and Station Operations segment helped to more than offset the effects of warmer-than-normal temperatures on our winter-sensitive products. Our performance underscores the strength of our diversified business model, which focuses on creating value for unitholders and delivering quality products and superior service to our customers and guests across our network of liquid energy terminals and convenience markets.<\/p>\n

\n\u201cThrough organic initiatives and strategic transactions, we continue to advance our leadership role in the energy distribution network,\u201d Slifka said. \u201cDuring the first quarter we signed a joint venture agreement with ExxonMobil to acquire 64 convenience and fueling facilities in Greater Houston. We are excited about the opportunity to expand our footprint into the fast-growing Texas market and look forward to operating these sites on behalf of the joint venture.\u201d<\/p>\n

Financial Highlights<\/b><\/p>\n

\nNet income was $29.0 million, or $0.70 per diluted common limited partner unit, for the first quarter of 2023, compared with net income of $30.5 million, or $0.76 per diluted common limited partner unit, in the same period of 2022.<\/p>\n

\nEarnings before interest, taxes, depreciation and amortization (EBITDA) was $78.1 million in the first quarter of 2023 compared with $79.8 million in the same period of 2022.<\/p>\n

\nAdjusted EBITDA was $76.0 million in the first quarter of 2023 versus $74.9 million in the same period of 2022.<\/p>\n

\nDistributable cash flow (DCF) was $46.3 million in the first quarter of 2023 compared with $49.9 million in the same period of 2022.<\/p>\n

\nEBITDA, Adjusted EBITDA and DCF include a net gain on sale and disposition of assets of $2.1 million and $4.9 million for the three months ended March 31, 2023 and 2022, respectively.<\/p>\n

\nGross profit in the first quarter of 2023 was $222.1 million compared with $206.2 million in the same period of 2022.<\/p>\n

\nCombined product margin, which is gross profit adjusted for depreciation allocated to cost of sales, was $244.8 million in the first quarter of 2023 compared with $228.2 million in the same period of 2022.<\/p>\n

\nCombined product margin, EBITDA, Adjusted EBITDA, and DCF are non-GAAP (Generally Accepted Accounting Principles) financial measures, which are explained in greater detail below under \u201cUse of Non-GAAP Financial Measures.\u201d Please refer to Financial Reconciliations included in this news release for reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures for the three months ended March 31, 2023, and 2022.<\/p>\n

\nGasoline Distribution and Station Operations (GDSO) segment product margin was $183.5 million in the first quarter of 2023 compared with $173.0 million in the same period of 2022. Product margin from gasoline distribution increased to $120.8 million from $114.9 million in the year-earlier period, primarily due to higher fuel margins (cents per gallon) and an increase in volume sold due to acquisitions completed in 2022. Product margin from station operations increased to $62.7 million from $58.1 million in the first quarter of 2022, primarily due to increased convenience store sales in part as a result of the 2022 acquisitions.<\/p>\n

\nWholesale segment product margin was $53.1 million in the first quarter of 2023 compared with $47.1 million in the same period of 2022. The increase was primarily driven by more favorable conditions in gasoline and gasoline blendstocks, which more than offset less favorable market conditions in distillates and other oils.<\/p>\n

\nCommercial segment product margin was $8.1 million in the first quarter of 2023 and 2022.<\/p>\n

\nTotal sales were $4.0 billion in the first quarter of 2023 compared with $4.5 billion in the same period of 2022. Wholesale segment sales were $2.5 billion in the first quarter of 2023 compared with $2.8 billion in the same period of 2022. GDSO segment sales were $1.3 billion in the first quarter of 2023 versus $1.4 billion in the same period of 2022. Commercial segment sales were $257.9 million in the first quarter of 2023 compared with $330.0 million in the first quarter of 2022.<\/p>\n

\nTotal volume was 1.4 billion gallons in the first quarter of 2023 compared with 1.5 billion gallons in the same period of 2022. Wholesale segment volume was 928.6 million gallons in the first quarter of 2023 compared with 976.8 million gallons in the same period of 2022. GDSO volume was 379.2 million gallons in the first quarter of 2023 compared with 376.5 million gallons in the same period of 2022. Commercial segment volume was 99.7 million gallons in the first quarter of 2023 compared with 116.8 million gallons in the same period of 2022.<\/p>\n

Recent Developments<\/b><\/p>\n