Martin Midstream Partners LP, Kilgore, Texas, reported first-quarter adjusted EBITDA of $40 million, which exceeded the high end of the company’s guidance by some $10 million. The company said much of the outperformance came from its Sulfur Services segment, which includes both fertilizer and sulfur, as well as its Transportation segment. Year-ago adjusted EBITDA was $31 million.
“The partnership experienced an exceptional quarter benefiting from increased refinery utilization and strong demand for our products and services,” said Bob Bondurant, President and CEO of Martin Midstream GP LLC, the general partner of the partnership.
“During the quarter, we successfully managed supply chain challenges, labor availability, and fluctuating commodity prices as the Russian invasion of Ukraine created global market instability,” he continued. “Looking forward, the outlook remains solid for our refinery services business model, and as a result we are increasing our 2022 adjusted EBITDA guidance range to $110-$120 million.”
Full-year guidance had previously been $100-$110 million.
First-quarter net income was $11.5 million ($0.29 per unit) on revenues of $279.2 million, up from $2.5 million ($0.06 per unit) and $201 million, respectively.
The Sulfur Services segment saw a 96 percent increase in operating income, to $12.7 million from the year-ago $6.4 million. Revenues were up 70 percent, to $59.1 million from the year-ago $34.8 million. Adjusted EBITDA for the segment was $15.3 million, up from $9.2 million.
While total sales volumes were up 18 percent, sulfur volumes were up 56 percent at 114,000 lt from 73,000 lt, while fertilizer was off 12 percent, to 84,000 lt from 95,000 lt.