USD Partners (USDP) Q4 2024 earnings summary

Executive summary

• Reported a net loss of $52.3 million for 2024, compared to net income of $17.8 million in 2023, driven by asset impairments and asset sales.

• Revenues declined sharply to $35.8 million in 2024 from $62.9 million in 2023, reflecting divestitures and reduced operations.

• Completed the sale of Casper, West Colton, and Stroud terminals, with the Hardisty Terminal sale expected by mid-April 2025, leaving no material assets.

• After the Hardisty sale, substantial debt will remain, and the partnership expects to wind down with no value for unitholders.

• Delisted from NYSE in November 2023 due to low market capitalization; now trades on OTC Pink Market.

Financial highlights

• Net loss of $52.3 million in 2024, compared to net income of $17.8 million in 2023.

• Revenues fell 43% year-over-year to $35.8 million, primarily from terminalling services.

• Operating loss of $17.8 million in 2024 versus operating income of $35.1 million in 2023.

• Impairment charges of $17.4 million and $0.8 million loss on assets held for sale in 2024.

• Cash and equivalents at year-end 2024 were $4.3 million, down from $6.6 million in 2023.

Outlook and guidance

• Hardisty Terminal sale expected by mid-April 2025; after sale, all material assets will be divested.

• Remaining debt will exceed sale proceeds, and the partnership will wind down or dissolve.

• No future distributions to unitholders are expected; units will have no value post-wind down.