Martin Midstream Partners(US:MMLP)2021-07-26 20:18Financial Performance - Total revenues for Q2 2021 were $184.3 million, a 31% increase from $140.6 million in Q2 2020[16] - The company reported a net loss of $6.6 million for Q2 2021, compared to a net loss of $2.2 million in Q2 2020[16] - Total revenue for the six months ended June 30, 2021, was $82,088,000, down 13.5% from $94,842,000 in the same period of 2020[30] - For the three months ended June 30, 2021, total revenues were $20,529, a decrease of 4.0% compared to $21,373 for the same period in 2020[94] - For the six months ended June 30, 2021, total revenues were $385.267 million, down 13% from $396.114 million for the same period in 2020[157] Revenue Breakdown - Natural gas liquids product sales surged to $67.2 million in Q2 2021, compared to $30.3 million in Q2 2020, representing a 121% increase[16] - Natural gas liquids product sales increased to $165,317,000 for the six months ended June 30, 2021, up 46.9% from $112,510,000 in 2020[30] - The partnership's sulfur services segment reported revenue of $73,121,000 for the six months ended June 30, 2021, an increase of 18.4% from $61,743,000 in 2020[30] - Revenues from terminalling and storage services for the three months ended June 30, 2021 were $15,569, compared to $15,942 for the same period in 2020, reflecting a decrease of 2.3%[94] - Total revenues for the Sulfur Services Segment increased by $4.9 million, or 15%, to $38.3 million for the three months ended June 30, 2021, compared to $33.4 million in 2020[177] Operating Income and Expenses - Operating income for the first half of 2021 was $23.3 million, slightly down from $23.6 million in the same period of 2020[16] - Operating income for the three months ended June 30, 2021, was $14,483,000, compared to $15,343,000 for the same period in 2020, indicating a decrease of about 5.6%[98] - Operating income for the six months ended June 30, 2021, increased to $23.319 million, a 63% increase from $14.571 million for the same period in 2020[158] - Operating expenses for the three months ended June 30, 2021, were $19,590,000, slightly higher than $19,440,000 in the same period of 2020, showing an increase of about 0.8%[98] - Operating expenses for the Transportation Segment rose by $3.2 million, or 11%, to $31.5 million for the same period, primarily due to increased utilities and insurance premiums[169] Cash Flow and Liquidity - The cash flow from operating activities for the six months ended June 30, 2021, was $6,085,000, a decrease of 86.4% from $44,626,000 in 2020[24] - Cash at the end of the period was $681,000, a significant increase from $52,000 at the end of the same period in 2020[24] - Net cash provided by operating activities decreased by $38.5 million, or 86%, from $44.6 million in 2020 to $6.1 million in 2021[207] Debt and Liabilities - Long-term debt increased to $517.3 million as of June 30, 2021, compared to $484.6 million at the end of 2020[14] - Total liabilities stood at $628.0 million as of June 30, 2021, slightly up from $626.5 million at the end of 2020[14] - The Partnership's accrued interest as of June 30, 2021, was $14,851,000, a decrease from $16,104,000 at the end of 2020, representing a decline of approximately 7.8%[47] - Total contractual cash obligations amounted to $693.1 million as of June 30, 2021[210] Capital Expenditures - Payments for property, plant, and equipment were $8,200,000 for the six months ended June 30, 2021, down 57.1% from $19,053,000 in 2020[24] - Capital expenditures for the six months ended June 30, 2021, totaled $10,112,000, compared to $16,769,000 for the same period in 2020, indicating a decrease of about 39.5%[98] Future Outlook - The estimated minimum future revenue from unsatisfied performance obligations totals $554,935,000, indicating strong future revenue potential[38] - Looking forward, the Partnership expects refinery utilization to increase in the second half of 2021, positively impacting demand for marine transportation services[124] Related Party Transactions - Related party transactions accounted for approximately 21% of total costs and expenses for the three months ended June 30, 2021[138] - Sales to Martin Resource Management Corporation represented approximately 11% of total revenues for the three months ended June 30, 2021[140] - The company reimbursed Martin Resource Management Corporation $32.6 million for direct costs for the three months ended June 30, 2021, compared to $30.2 million in the same period of 2020[134] Taxation - The provision for income taxes for the three months ended June 30, 2021, was $935,000, compared to $790,000 for the same period in 2020, reflecting an increase in income before income taxes[106] - The effective income tax rate for the three months ended June 30, 2021, was 40.22%, up from (472.00)% in the same period of 2020[106] Miscellaneous - The company sold its Mega Lubricants business for $22.4 million, with proceeds used to reduce outstanding borrowings[128] - The Partnership is in compliance with all debt covenants as of June 30, 2021, ensuring financial stability and operational flexibility[40] - The Partnership's operations are primarily focused in the U.S. Gulf Coast region, a major hub for petroleum refining and support services[116]