Martin Midstream Partners LP (MMLP) Kilgore, Texas, reported a 15 percent drop in operating income for its Sulfur Services segment, which includes fertilizer, for the second quarter ending June 30, 2021. Operating income was $6.3 million, down from $7.4 million, while revenues were up 15 percent, to $38.3 million from $33.4 million. Adjusted segment EBITDA was $8.9 million, down from the year-ago $10.8 million.
Total second-quarter volumes were off 11 percent to 230,000 lt from 257,000 lt. This included a 12 percent drop for sulfur to 146,000 lt from 166,000 lt and an 8 percent decline for fertilizer to 84,000 lt from 91,000 lt.
Six-month Sulfur Services income was off 32 percent to $12.7 million from the year-ago $18.7 million, with revenues up 18 percent to $73.1 million from $61.7 million. Total volumes were off 23 percent to 398,000 lt from 514,000 lt. Fertilizer volumes were up 8 percent to 179,000 lt from 165,000 lt, while sulfur was off 37 percent to 219,000 lt from 349,000 lt.
“For the second quarter of 2021, the partnership had a solid performance in line with our annual projected cash flows of between $95 million to $102 million,” said Bob Bondurant, President and CEO of Martin Midstream GP LLC, the general partner of the partnership. “As the country returns to a more open economy and refinery utilization increases, we have seen heightened demand for our services particularly within the land transportation and lubricants businesses.
“However, the impact of COVID-19 is still reflected in a reduction in sulfur service volumes and lower marine day rates year over year. As expected, marine utilization has increased from last quarter and we anticipate the continued economic recovery will drive demand upward allowing for the further utilization of our asset base,” he continued.
“Looking to the third quarter, which is seasonally our weakest due to the cyclical nature of both the fertilizer and butane businesses, we amended our revolving credit facility in response to rising commodity prices and the continued impact of COVID-19 on the partnership’s trailing twelve month cash flows. I’d like thank our lenders for recognizing our ongoing commitment to capital discipline through their support of the amendment,” Bondurant added.
While the Sulfur Services segment remained in the black, company-wide MMLP dug deeper into the red, posting a second-quarter net loss of $6.6 million ($0.17 per unit attributable to the limited partners – diluted) on revenues of $184.3 million, compared to the year-ago loss of $2.2 million ($0.06 per unit) and $140.6 million, respectively.
For the first six months, MMLP posted a net loss of $4.1 million ($0.10 per unit) on revenues of $385.3 million, down from the year-ago positive $6.6 million ($0.17 per unit) and $339.5 million, respectively.