USD Partners, which acquires, develops, and operates energy-related logistics assets across the US, has bounced back in the first quarter of 2021, reporting net income of $7.3m compare to a loss of $33.7m in the equivalent period of the prior year.
The Partnership generated net cash provided by operating activities of $12.6m and adjusted pre-tax earnings of $14.6m.
The Partnership experienced lower operating costs during the first quarter of 2021 as compared to the first quarter of 2020. This decrease was primarily due to a non-cash impairment of the goodwill associated with the Casper terminal that was recognized in the first quarter of 2020, with no similar charge recognized in the first quarter of 2021.
Net income increased in the first quarter of 2021 as compared to the net loss recognized in the first quarter of 2020, primarily because of these operating factors coupled with lower interest rates and a lower weighted average balance of debt outstanding.
Dan Borgen, USD Partner’s CEO, commented: “Our strategically located terminals continue to perform well, and our recommendation to the Board to increase our quarterly distribution by 2.25% relative to the fourth quarter of 2020 was reinforced by our improved outlook for our business along with our enhanced liquidity position.” For more information visit: www.usdpartners.com