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Jun 30, 2023
Genesis Energy Q2 2023 Earnings Report
Announced second quarter 2023 results, demonstrating resilient earnings power across diversified businesses.
Key Takeaways
Genesis Energy reported a net income of $49.3 million for the second quarter of 2023. The company's financial results were generally in line with internal expectations, driven by steady offshore pipeline transportation volumes, a return to normal operating levels for the soda ash business, and continued strong performance in the marine transportation segment. Adjusted EBITDA for the quarter was $198.0 million.
Net income attributable to Genesis Energy, L.P. was $49.3 million for the second quarter of 2023, compared to $35.3 million for the same period in 2022.
Cash flows from operating activities were $157.7 million for the second quarter of 2023, compared to $104.0 million for the same period in 2022.
Available cash before reserves to common unitholders was $96.3 million for the second quarter of 2023, providing 5.24X coverage for the quarterly distribution.
The company is adjusting full year guidance for Adjusted EBITDA range of $725 - $745 million.
Genesis Energy
Genesis Energy
Genesis Energy Revenue by Segment
Revenue by Segment
Offshore pipeline trans. Revenue
CapyFin.comMarine transportation Revenue
CapyFin.com Forward Guidance
Genesis Energy is adjusting its full year guidance for Adjusted EBITDA to a range of $725 - $745 million. The company expects financial performance in 2024 to be greater than 2023, driven by a continued ramp in offshore volumes and additional volumes from the Granger expansion. In 2025, a significant step change in offshore volumes and segment margin contributions is expected as both Shenandoah and Salamanca come on-line.
Positive Outlook
- Volumes from Argos are expected to ramp towards its nameplate capacity of 140,000 barrels per day.
- Steady volumes are expected from King’s Quay and new volumes from additional in-field development wells, field extensions and sub-sea tiebacks.
- The CHOPS expansion and new SYNC lateral are expected to be completed in the second half of 2024.
- The Granger expansion project remains on schedule for first soda ash production in the next few months.
- The company expects to exit 2023 with a leverage ratio at or near its long-term target of 4.00 times.
Challenges Ahead
- Softer than previously expected soda ash prices in some export markets are anticipated.
- Slowing global industrial production and a slower than anticipated re-opening of China’s economy are impacting soda ash demand.
- Customers are working through existing soda ash inventories and taking a wait and see approach with new purchases.
- The company has made the proactive decision to adjust pricing on potentially stranded soda ash volumes.
- Legacy sulfur services business was impacted by certain operational issues at host refinery partners.
Revenue & Expenses
Visualization of income flow from segment revenue to net income