Martin Midstream Partners LP (MMLP) Reports Q3 2023 Financial Results and Declares Quarterly ...
MMLP reports a net loss of $1.1 million for Q3 2023 and $5.1 million for the nine months ended September 30, 2023.
Adjusted EBITDA reported at $26.2 million for Q3 and $88.6 million for the nine months ended September 30, 2023.
Quarterly cash distribution of $0.005 per common unit declared for the quarter ended September 30, 2023.
Total debt reduced by $53.6 million in the first nine months of 2023, bringing adjusted leverage down to 3.95 times.
On October 18, 2023, Martin Midstream Partners LP (NASDAQ:MMLP) announced its financial results for the third quarter of 2023. Despite reporting a net loss of $1.1 million for the quarter and $5.1 million for the nine months ended September 30, 2023, MMLP reaffirmed its 2023 Annual Adjusted EBITDA Guidance of $115.4 million.
Financial Performance Overview
MMLP reported adjusted EBITDA of $26.2 million for Q3 and $88.6 million for the nine months ended September 30, 2023. The company also declared a quarterly cash distribution of $0.005 per common unit for the quarter ended September 30, 2023, or $0.020 per common unit annually. Despite the reported net loss, MMLP managed to reduce its total debt by $53.6 million in the first nine months of 2023, bringing its adjusted leverage down to 3.95 times as of September 30, 2023, compared to 4.53 times at December 31, 2022.
Performance by Business Segment
Operating income for the Terminalling and Storage (T&S) segment was $3.1 million for Q3 2023, while the Transportation segment reported operating income of $6.7 million. The Sulfur Services segment reported an operating income of $2.7 million, and the Specialty Products segment reported an operating income of $6.0 million for the same period.
Capitalization and Cash Distribution
As of September 30, 2023, MMLP had $462.5 million of total debt outstanding, including $62.5 million drawn on its $175 million revolving credit facility maturing in 2027 and $400 million of senior secured second lien notes due 2028. The Partnerships leverage ratio was 3.95 times at September 30, 2023, compared to 4.14 times at June 30, 2023. The Partnership declared a quarterly cash distribution of $0.005 per unit for the quarter ended September 30, 2023, payable on November 14, 2023 to common unitholders of record as of the close of business on November 7, 2023.
Outlook
Despite the reported net loss, MMLP's CEO, Bob Bondurant, stated that the company's financial results for the third quarter met guidance. He also reaffirmed the full year 2023 adjusted EBITDA outlook of $115.4 million, indicating the company's confidence in its operational restructuring to deliver stable and sustainable cash flows.
This article first appeared on GuruFocus.
