Martin Midstream Partners LP, Kilgore, Texas, reported a 9 percent uptick in fertilizer sales volumes in the year ending Dec. 31, 2021, to 301,000 lt, up from 2020’s 275,000 lt. Sulfur volumes were off 29 percent, to 456,000 lt from 642,000 lt. Total volumes were off 17 percent, to 757,000 lt from 2020’s 917,000 lt.
The Sulfur Services segment, which includes both fertilizer and sulfur, posted 2021 operating income of $24 million, down from the year-ago $29 million. Total revenues were up, at $145 million from $108 million. Product revenues were $133.2 million, up from $96.4 million, while service revenues were almost even at $11.8 million, up from $11.6 million.
Fourth-quarter Sulfur Services results were improved over year-ago levels. Adjusted EBITDA was $11.4 million, up from the year-ago $7.4 million. The company said the results reflected increased volumes and margins for both sulfur and fertilizer. Operating income for the quarter was $8.9 million, up from $4.7 million.
“The partnership finished the year with another strong quarter leading to adjusted EBITDA of $114.5 million for 2021, exceeding the high end of our guidance by approximately $12.5 million,” said Bob Bondurant, President and CEO of Martin Midstream GP LLC, the general partner of MMLP. “These results allowed us to make significant progress towards our leverage goals, as adjusted and total leverage were reduced over a full turn from both Dec. 31, 2020, and Sept. 31, 2021. The rebound in the global economy and strengthening commodity prices resulted in solid annual results across all segments, and particularly in our fertilizer, land transportation, and butane optimization businesses.”
The company expects to generate $100-$110 million in adjusted EBITDA in 2022.
Company-wide, MMLP reported a $211,000 net loss on revenues of $882.4 million for 2021, compared to 2020’s loss of $6.8 million and revenues of $672.1 million. Adjusted EBITDA was $114.5 million, up from the year-ago $94.9 million.
Fourth-quarter MMLP results were improved, with net income at $10.8 million versus the year-ago loss of $2.6 million. Adjusted EBITDA was up at $39.7 million from $17.4 million. Revenues were up at $285.9 million from $180.1 million.