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WALTHAM, Mass. — Global Partners LP expressed confidence in its growth through acquisitions, and discussed how it is taking advantage of strong product margins during its 2015 first-quarter earnings call Thursday.
"Reflecting our acquisition of Warren Equities, as well as the favorable impact of declining gasoline prices, our gasoline distribution and station operations segment posted record product margin for the quarter," President and CEO Eric Slifka reported during the call.
On the retail side, Global Partners closed its $387-million acquisition of Warren Equities early in the first quarter, expanding its portfolio with the addition of 146 company-operated Xtra Mart convenience stores and gas stations, among other assets.
"The integration of Warren Equities is proceeding smoothly, and we are realizing the expected synergies from this transaction," Slifka said.
Another highlight of the first quarter was Global Partners' agreement to purchase a portfolio from Capitol Petroleum Group that includes 97 primarily Mobil- and Exxon-branded owned or leased gas stations, plus seven dealer supply contracts in New York City and Maryland. This deal is expected to close during the second quarter, as CSNews Online previously reported.
"Our purchase of the Capitol Petroleum portfolio is on track to close this quarter, and we expect the addition of these assets to enhance our earnings profile," Slifka noted.
Companywide, Global Partners posted $30.4 million in net income during the quarter, down from $57 million in Q1 2014. Combined product margin was $190.1 million, an increase from $173.2 million one year ago.