Martin Midstream Partners LP (MMLP) reported third-quarter net loss of $28.0 million on revenues of $229.3 million, below the year-ago loss of $6.9 million and $211.3 million, respectively. Adjusted EBITDA stood at $18.8 million, falling from the prior-year $21.5 million. The company took a $21.8 million inventory writedown in the third quarter, citing volatility in both its Sulfur Services and Natural Gas Liquids (NGL) segments.
“During the third quarter, which is typically the partnership’s weakest quarter due to seasonal lows in the fertilizer and butane businesses, both the Transportation and the Terminalling and Storage segments continued to outperform our internal projections,” said Bob Bondurant, President and CEO of Martin Midstream GP LLC, the general partner of MMLP. “On the marine side, rates have now recovered to pre-pandemic levels and asset utilization has improved.
“However, the Sulfur and Natural Gas Liquids segments experienced volatility during the third quarter. In the Sulfur segment, both the fertilizer and sulfur groups faced pricing instability, resulting in lower fertilizer sales volumes. In addition, the pure sulfur business was impacted by unplanned maintenance expense related to the marine assets deployed in support of the business.”
MMLP’s Sulfur Services segment reported a third-quarter operating loss of $6.7 million on revenues of $28.9 million, down from the year-ago income of $2.3 million income and revenues of $30.8 million, respectively. Adjusted EBITDA was posted at (-)$4.2 million, down from the year-ago $4.9 million. The quarterly operating loss included a $3.3 million inventory valuation writedown.
Third-quarter sulfur volumes were counted at 95,000 lt, off 34% from the year-ago 145,000 lt. Fertilizer volumes stood at 24,000 lt, falling 58% from the year-ago 57,000 lt.
Nine-month Sulfur Services operating income was $15.1 million on revenues of $144.9 million, up from $15.0 million and $104.0 million, respectively, in the prior year.
Sulfur volumes were down 10% for the nine-month period, falling to 327,000 lt from the year-ago 364,000 lt. Fertilizer volumes were off 28%, to 170,000 lt from 236,000 lt.
MMLP reported a company-wide net loss of $10.0 million through the first nine months of the year, an improvement on the year-ago $11.0 million net loss. Adjusted nine-month EBITDA was posted at $97.1 million, up from the year-ago $74.9 million. The company also reported a $24 million inventory writedown for the nine-month period. Revenues were $775.5 million, up from the year-ago $596.5 million.
MMLP revised fourth-quarter adjusted EBITDA guidance to $19-$24 million, resulting in a revised full-year adjusted EBITDA guidance of $116-$121 million, down from its previous $126-$135 million guidance. The company opted not to provide guidance beyond 2022.