Loading...
•
Mar 31, 2025
Genesis Energy Q1 2025 Earnings Report
Genesis Energy, L.P. reported a net loss attributable to Genesis Energy, L.P. of $469.1 million for the first quarter of 2025, primarily due to a loss from the sale of its Alkali Business.
Key Takeaways
Genesis Energy, L.P. experienced a significant net loss in Q1 2025, primarily driven by the sale of its soda ash business. Despite this, the company is optimistic about its future cash generation after simplifying its balance sheet and reducing capital costs. Operational performance in remaining segments was slightly below expectations but is projected to improve.
Net Loss Attributable to Genesis Energy, L.P. was $469.1 million, a significant decrease from a net income of $11.4 million in Q1 2024.
Cash Flows from Operating Activities decreased to $24.8 million from $125.9 million in the prior year.
The company successfully exited its soda ash business, using the proceeds to pay down debt and repurchase preferred units, significantly reducing annual cash costs.
Offshore expansion projects, Shenandoah and Salamanca, are nearing completion, expected to ramp up production in mid-2025 and contribute to future growth.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Genesis Energy expects Adjusted EBITDA for 2025 to be in the range of $545 million to $575 million, driven by anticipated step changes in offshore pipeline transportation and steady performance from other segments.
Positive Outlook
- Shenandoah and Salamanca production facilities are expected to begin ramping up volumes in June and the second half of 2025, respectively.
- Successful mooring of the Shenandoah production facility to the sea floor in April.
- Robust commercial discussions for additional in-field, sub-sea, and secondary recovery development opportunities to attract new volumes without additional growth capital.
- Marine transportation segment expects continued strong demand and steady to increasing day rates due to limited new supply and retirement of older vessels.
- Onshore transportation and services segment anticipates steady volumes and marginal increases from new offshore developments.
Challenges Ahead
- Variability in Adjusted EBITDA guidance is primarily driven by the timing of resolving mechanical issues at impacted offshore fields.
- Variability in Adjusted EBITDA guidance is also influenced by the ramp-up rate of Shenandoah and Salamanca production.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...