Global Partners Reports First-Quarter 2022 Financial Results

WALTHAM, Mass.–(BUSINESS WIRE)–Global Partners LP (NYSE: GLP) today reported financial results for the first quarter ended March 31, 2022.

“Volume and margin gains in each segment of our business highlighted a strong first-quarter performance for Global, as we continued to navigate a dynamic and volatile operating environment,” said Eric Slifka, the Partnership’s President and Chief Executive Officer. “Our results underscore the benefits of our vertically integrated liquid energy distribution system, which is designed to achieve synergies and enhance margins across each step of the value chain.

“Our strategy to drive growth through M&A and organic investments continues to generate positive results for Global,” Slifka said. “Product margin in our Gasoline Distribution and Station Operations segment increased 33% to $173 million in the first quarter. The segment benefitted from our recently completed acquisition of a combined 105 sites from Consumers Petroleum of Connecticut and Miller’s Neighborhood Market.”

Financial Highlights
Net income was $30.5 million, or $0.76 per diluted common limited partner unit, for the first quarter of 2022 compared with a net loss of $4.3 million, or $0.20 per common limited partner unit, in the same period of 2021.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $79.8 million in the first quarter of 2022 compared with $40.9 million in the same period of 2021.

Adjusted EBITDA was $74.9 million in the first quarter of 2022 versus $40.4 million in the same period of 2021.

Distributable cash flow (DCF) was $49.9 million in the first quarter of 2022 compared with $14.0 million in the same period of 2021.

EBITDA, Adjusted EBITDA and DCF include a net gain on sale and disposition of assets of $4.9 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively.

Gross profit in the first quarter of 2022 was $206.2 million compared with $145.0 million in the same period of 2021, driven primarily by the Gasoline Distribution and Station Operations (GDSO) segment.

Combined product margin, which is gross profit adjusted for depreciation allocated to cost of sales, was $228.2 million in the first quarter of 2022 compared with $165.1 million in the same period of 2021.

Combined product margin, EBITDA, Adjusted EBITDA, and DCF are non-GAAP (Generally Accepted Accounting Principles) financial measures, which are explained in greater detail below under “Use of Non-GAAP Financial Measures.” 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, 2022 and 2021.

GDSO segment product margin was $173.0 million in the first quarter of 2022 compared with $130.4 million in the same period of 2021. The increase was driven primarily by stronger retail fuel and convenience store margins and contributions from recent acquisitions.

Wholesale segment product margin was $47.1 million in the first quarter of 2022 compared with $30.5 million in the same period of 2021, driven by more favorable market conditions in other oils and related products, partially offset by less favorable market conditions in gasoline and gasoline blendstocks.

Commercial segment product margin was $8.1 million in the first quarter of 2022 compared with $4.2 million in the same period of 2021, reflecting an increase in bunkering activity.

Sales were $4.5 billion in the first quarter of 2022 compared with $2.6 billion in the same period of 2021. Wholesale segment sales were $2.8 billion in the first quarter of 2022 compared with $1.6 billion in the first quarter of 2021. GDSO segment sales were $1.4 billion in the first quarter of 2022 versus $0.9 billion in the same period of 2021. Commercial segment sales were $330.0 million in the first quarter of 2022 compared with $145.7 million in the same period of 2021.

Volume in the first quarter of 2022 was 1.5 billion gallons compared with 1.3 billion gallons in the same period of 2021. Wholesale segment volume was 976.8 million gallons in the first quarter of 2022 compared with 885.4 million gallons in the same period of 2021. GDSO volume was 376.5 million gallons in the first quarter of 2022 compared with 334.1 million gallons in the same period of 2021. Commercial segment volume was 116.8 million gallons in the first quarter of 2022 compared with 81.4 million gallons in the same period of 2021.

Recent Developments

  • Global announced a quarterly cash distribution of $0.5950 per unit, or $2.38 per unit on an annualized basis, on all of its outstanding common units for the period from January 1 to March 31, 2022. The distribution will be paid May 13, 2022 to unitholders of record as of the close of business on May 9, 2022.

Business Outlook
“We are off to a strong start in 2022,” Slifka concluded. “We continue to identify new opportunities to further drive value through our integrated network and strategically located assets to enhance efficiencies, increase returns to unitholders and deliver an outstanding experience for our customers and guests.”

About Global Partners LP
With approximately 1,700 locations primarily in the Northeast, Global Partners is one of the region’s largest independent owners, suppliers and operators of gasoline stations and convenience stores. Global also owns, controls or has access to one of the largest terminal networks in New England and New York, through which it distributes gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers. In addition, Global engages in the transportation of petroleum products and renewable fuels by rail from the mid-continental U.S. and Canada. Global, a master limited partnership, trades on the New York Stock Exchange under the ticker symbol “GLP.” For additional information, visit www.globalp.com.