By Global Partners announced a substantial increase in fourth-quarter EBITDA, jumping to $110.9 million compared to $105.9 million in 2022. The boost was primarily attributed to strong retail margins. Despite this positive development, net income saw a slight decline, dropping to $55.3 million from $57.5 million in the same period.
CEO Optimistic About Transformational Year
CEO Eric Slifka expressed excitement about 2023 being a “transformational year” for the Massachusetts-based company. This optimism stemmed from the acquisition of 25 refined products terminals from Motiva and a retail joint venture with ExxonMobil in the Houston metropolitan area.
Changes in Acquisition Deals
Acknowledging changes in acquisition deals, Global Partners revealed that the purchase of five bulk terminals from Arclight has been adjusted. The exclusion of the South Portland terminal led to a reduced purchase price of $212.3 million from the initial $273 million.
Future Expansion Plans
During an earnings call, Slifka hinted at focusing on acquisitions in areas where the company already has infrastructure assets. The partnership with ExxonMobil, forming Spring Partners, introduced 64 convenience stores to Global’s portfolio, with plans to potentially expand further in Texas.
Strategic Approach Towards Opportunities
Emphasizing an “opportunistic” approach, Global Partners aims to carefully evaluate potential deals. The company’s performance was largely boosted by robust retail margins, showcasing an average street margin of 44cts/gal in the fourth quarter, an increase from 37cts/gal in 2022.
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