Global Partners achieved year-over-year growth across all key financial metrics in 2024’s second quarter, which ended June 30, Eric Slifka, president and CEO, said during the Waltham, Massachusetts-based company’s second-quarter earnings call Aug. 7.
- Global Partners is No. 21 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
“These results underscore the effectiveness of our integrated business model and the strategic advantages of our diversified portfolio of liquid energy terminals, fueling stations and convenience markets,” Slifka said.
Highlights
Net income was $46.1 million or second-quarter 2024, compared with net income of $41.4 million in the same period of 2023.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $118.8 million in the second quarter compared with $90.7 million in the same period of 2023.
Adjusted EBITDA was $121.1 million in the second quarter versus $90.4 million in the same period of 2023.
“Over the past nine months, we have invested more than $500 million to significantly expand our wholesale segment footprint through the strategic acquisition of a combined 29 terminals from Motiva Enterprises and Gulf Oil, more than doubling our storage capacity to 21.4 million barrels,” Slifka said. “We’re pleased with the performance of these assets. Our expanded network bolsters our terminal operations and opens new avenues for growth, further enhancing our earnings power and driving sustained value for our unitholders.”
Global Partners’ product margin from station operations increased to $74.2 million in 2024’s second quarter from $71.2 million in the second quarter of 2023.
The gasoline distribution and station operations (GDSO) segment product margin was $221.5 million in second-quarter 2024 compared with $199.1 million in the same period of 2023. Product margin from gas distribution increased to $147.3 million from $127.9 million in the year-earlier period, reflecting higher fuel margins.
The commercial segment product margin was $6.2 million in the second quarter compared with $6.8 million in the same period of 2023 primarily due to less favorable market conditions.
Other Highlights
- Distributable cash flow (DCF) was $73.1 million in second-quarter 2024 compared with $54.8 million in the same period of 2023.
- Adjusted DCF was $74.2 million in second-quarter 2024 compared with $53.3 million in the same period of 2023.
- Gross profit was $287.9 million in second-quarter 2024 compared with $242.7 million in the same period of 2023.
- Combined product margin, which is gross profit adjusted for depreciation allocated to cost of sales, was $319.6 million in second-quarter 2024 compared with $265.6 million in the same period of 2023.
Total sales were $4.4 billion in 2024’s second quarter compared with $3.8 billion in the same period of 2023, primarily due to an increase in volume sold. Wholesale segment sales were $2.6 billion in the second quarter compared with $2.1 billion in the same period of 2023.
GDSO segment sales were $1.5 billion in each of the second quarters of 2024 and 2023. Commercial segment sales were $280.9 million in second-quarter 2024 compared with $226.5 million in second-quarter 2023.
Wholesale segment product margin was $91.9 million in the second quarter compared with $59.7 million in the same period of 2023. Gasoline and gasoline blendstocks product margin increased to $70.4 million in second-quarter 2024 from $39 million in the same period of 2023, driven primarily by the acquisition of liquid energy terminals from Motiva Enterprises in December 2023 and by more favorable market conditions in gasoline.
Total sales were $4.4 billion in the second quarter compared with $3.8 billion in the same period of 2023.
Total volume was 1.6 billion gallons in second-quarter 2024 compared with 1.3 billion gallons in the same period of 2023. Wholesale segment volume was 1.1 billion gallons in second-quarter 2024 compared with 809.6 million gallons in the same period of 2023.
Global Partners has about 1,700 locations across the Northeast and Mid-Atlantic, of which 353 are company owned. Brands include Alltown Fresh, Honey Farms and XtraMart, among others.
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