Kilgore-based Martin Midstream Partners said strategic actions in the previous 18 months helped it finish 2019 on the upswing, but “more is required.” So, in a move both to reduce debt and increase investment at its Beaumont and Corpus Christi facilities, it slashed its annual distribution by 75%.
Martin said the move will allow it to retain $28.9 million annually.
Quarterly and year-end financial results released last week showed Martin’s revenue was down for the fourth quarter and full year 2019, while earnings before interest, tax, depreciation and amortization — or EBITDA — was up.
The partnership’s distributable cash flow, an industry-standard figure that approximates the amount of cash available to pay out as dividends, also improved for the quarter and full year.
For the fourth quarter, revenue was $241.9 million, down from $267.2 million a year earlier. For the full year, revenue was $847.1 million, down from $1.02 billion in 2018.
Martin reported adjusted earnings before interest, tax, depreciation and amortization — or EBITDA — of $35.5 million, up about 39% from $25.5 million a year ago. For the full year of 2019, adjusted EBITDA was $108.3 million, up from $107.2 million in 2019.
Distributable cash flow jumped nearly 150% in the fourth quarter to $20.7 million from $8.3 million a year earlier. For the full year, distributable cash flow was $51.5 million.
Net income from continuing operations for the fourth quarter was $6.6 million, up from $1.6 million a year earlier. For the full year, net income swung from a loss of $7.8 million in 2018 to $4.5 million in 2019.
For 2020, Martin said EBITDA would be $117.1 million, maintenance capital expenditures would be $17.4 million, and distributable cash flow $49.6 million.
Martin Midstream has diverse operations focused primarily on the Gulf Coast region. Its primary business segments are terminal, storage and packaging services for petroleum products; natural gas services; sulfur and sulfur-based products; and marine transportation services.
