MIC Reports Second Quarter 2018 Financial Results, Cash Dividend Of $1.00 Per Share

"MIC's financial and operational performance was consistent with our guidance for the year and supported the authorization of a dividend of $1.00 per share. We remain confident in the sustainability of our dividend at the current level and the prospect of dividend growth over the medium term," added Frost.

Second Quarter Segment Results 

• IMTT generated EBITDA of $74.0 million, a decrease of 10% on the prior comparable period, primarily due to the deferred revenue recognized in connection with the cancellation of a construction project in June of 2017 and the forecasted temporary decline in capacity utilization. Consistent with prior guidance, storage utilization declined to 86.1% in the quarter compared with 94.0% in the prior comparable period. MIC expects utilization to decline to the low 80s percent range before recovering to the low 90s percent range in 2020, subject to market conditions.
  
  
• Atlantic Aviation generated EBITDA of $60.3 million, an increase of 5.1% over the prior comparable period, driven by growth in general aviation flight activity and contributions from acquired fixed base operations.
  
  
• Contracted Power generated EBITDA of $33.1 million, up 20.1% on the prior comparable period, on fees received from a developer of renewable power projects, improved wind resources and increased tariff-based revenue from the thermal power generation facility.
  
  
• MIC Hawaii generated EBITDA of $11.5 million, down 21.4% on the prior comparable period, primarily driven by higher expenses related to the Company's design-build mechanical contractor and the Hawaii Gas rate case. A portion of the increased costs at Hawaii Gas are expected to be recovered in rates that were approved by the Hawaii Public Utilities Commission in an Interim Decision and Order issued on June 27, 2018. The new rates were implemented on July 1, 2018. MIC expects an increase in regulated revenue at Hawaii Gas of approximately $8.9 million per year.

Strategic Initiatives

Sale of Bayonne Energy Center (BEC)

On July 29, 2018 MIC announced that it had entered into an agreement to sell 100% of BEC to NHIP II Bayonne Holdings LLC for $900 million in cash and assumed debt. Closing of the transaction is subject to receipt of customary approvals from the New York Public Service Commission and the Federal Energy Regulatory Commission, among others, and is expected to occur in the fourth quarter of 2018.

The debt balance outstanding at BEC at closing is expected to be $243.5 million. MIC anticipates using part of the net proceeds of approximately $650 million, after transaction fees and expenses, to reduce debt including $150 million outstanding on the revolving credit facility at the Company's IMTT business. MIC expects its ratio of net debt to EBITDA to be less than 4.5 times at year end 2018.

Proceeds not used to reduce debt will be available to fund a portion of MIC's planned growth capital deployments. The MIC Board will consider options for returning any excess capital to shareholders.

MIC expects the taxable gain from the sale of BEC to utilize the majority of its federal prior year Net Operating Loss carry-forward although the Company expects to be able to offset future federal taxable income with the tax benefits associated with capital deployments.

IMTT Repurposing and Repositioning

As previously announced, MIC is undertaking initiatives related to the repurposing of certain IMTT storage assets and repositioning portions of the business in response to shifts in global demand and trade flows impacting IMTT.

• Repurposing Existing Capacity
   
  IMTT anticipates repurposing up to three million barrels of storage capacity on the Lower Mississippi River away from primarily heavy and residual oils to gasoline and distillates, chemicals and vegetable and/or tropical oils. Capacity utilization at IMTT is expected to average in the mid-80s percent range in 2018 and to increase to the low 90s percent range in 2020, both subject to market conditions. Capacity utilization averaged 86.1% during the second quarter and 84.8% during June.
   
  Approximately 1.3 million barrels of IMTT storage capacity is currently being repurposed. Of that, 500,000 barrels were contracted in the second quarter and an additional 370,000 barrels were contracted in the third quarter. IMTT expects to invest approximately $15 million in the repurposing of storage capacity in 2018 and had deployed approximately $2.8 million through June.
  
  
• Repositioning, Creating Additional Capacity and Capability
   
  IMTT expects to deploy an additional approximately $15 million in 2018 on projects that will develop new storage capacity and/or improve terminal (primarily pipeline) connectivity. In July, repositioning activities included the negotiation and signing of an agreement with a chemicals manufacturer for the construction of approximately 200,000 barrels of new capacity and related eight year storage contract. The project is expected to be completed in late 2019 and require an investment of approximately $20.0 million.

Portfolio and Capital Management

In its results release for the first quarter of 2018 MIC noted that it expected to deploy approximately $300 million during the year on a combination of growth projects and "bolt-on" acquisitions and to exit certain smaller, non-core businesses. To date, the Company has deployed, or committed to deploy, approximately $200 million including in the acquisition (on-field consolidation) of a fixed base operation by Atlantic Aviation in January 2018, the completion of the development of additional power generating capacity prior to the sale of BEC and the development of additional capacity and capability at IMTT.

Including a previously announced sale of IMTT subsidiary OMI Environmental Solutions, Inc., through June 30, 2018, MIC has exited businesses and terminated projects that have generated an aggregate approximately $40 million of cash proceeds.

Segment EBITDA Guidance

MIC adjusted its prior guidance for the generation of EBITDA in 2018 to reflect primarily the expected early fourth quarter closing of the sale of BEC. As a result, the expected contribution from Contracted Power has been reduced by $10 to $15 million to a range of $80 to $90 million. The Company also increased its estimate of expenses incurred in its Corporate/Other segment by $5 million to reflect the expected higher cost of advisory services incurred in connection with addressing shareholder matters.

Summary Financial Information
		Quarter Ended June 30,						Change  Favorable/ (Unfavorable)					Six Months Ended June 30,								Change Favorable/ (Unfavorable)
			2018			2017			$		%			2018			2017				$		%
		($ In Thousands, Except Share and Per Share Data) (Unaudited)
GAAP Metrics
Net income		$	36,279		$	26,025			10,254		39.4		$	83,074		$	58,663				24,411		41.6
Weighted average number of shares outstanding: basic			85,082,209			82,430,324			2,651,885		3.2			84,952,551			82,285,053				2,667,498		3.2
Net income per share attributable to MIC		$	0.45		$	0.32			0.13		40.6		$	1.36		$	0.75				0.61		81.3
Cash provided by operating activities(1)			121,900			121,043			857		0.7			266,002			248,637				17,365		7.0
MIC Non-GAAP Metrics
EBITDA excluding non-cash items(2)		$	168,935 Werbung Mehr Nachrichten zur Macquarie Infrastructure Company Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 27.04.24 - Tippchecker Aktientipps für den Mai – aufgeschnappt auf der Invest Messe 27.04.24 - Small- & Micro Cap ... Batteriespeicher spielen Hauptrolle bei der Energiewende – Samsung, Vanadium Resources und Panasonic Biotech-Einhorn!    FDA Zulassung für das CBD-Wunder?! weiterlesen» Anzeige wo-site-teaser-box-16773_site-teaser-box_2024-04-27_09%253A00%253A00_2024-04-28_09%253A00%253A59