WALTHAM, Mass. - Global Partners LP (NYSE:GLP), an integrated energy supply, storage, and distribution company, has declared a quarterly cash distribution of $0.7300 per unit for the third quarter of 2024, which equates to an annualized rate of $2.92 per unit. This distribution is payable on November 14, 2024, to unitholders of record at the close of business on November 8, 2024.
In conjunction with the distribution announcement, Global Partners also issued guidance for brokers and nominees handling the company's units on behalf of non-U.S. investors. According to Treasury Regulations, all distributions to non-U.S. investors are deemed attributable to income effectively connected with a U.S. trade or business. Consequently, these distributions are subject to federal income tax withholding at the highest applicable effective tax rate plus an additional 10%. Nominees are responsible for withholding the required tax on distributions received on behalf of non-U.S. investors.
Global Partners, with a history extending over 90 years, has grown into a Fortune 500 entity. The company operates a network of 54 liquid energy terminals across the Eastern United States, providing connectivity to key transportation assets. Global Partners distributes a range of fuel products, including gasoline, distillates, residual oil, and renewable fuels to a diverse clientele comprising wholesalers, retailers, and commercial customers.
Additionally, Global Partners manages over 1,700 retail locations offering fuel and convenience retailing, underscoring its commitment to customer service. The company's standing as a Fortune Most Admired Company reflects its adaptability and strategic growth in the evolving energy sector.
The company's forward-looking statements included in the press release reflect management's current expectations about future developments. However, these statements are subject to a variety of risks, uncertainties, and assumptions that could cause actual results to differ from historical performance and current projections. Global Partners advises readers to exercise caution in relying on forward-looking statements.
This news article is based on a press release statement from Global Partners LP, and it should not be considered an endorsement of the company's claims. For further information, Global Partners LP's filings with the SEC provide additional context regarding potential factors that could influence the company's financial performance.
In other recent news, Global Partners LP announced robust growth in its Q2 2024 earnings. The company reported year-over-year growth in operating income, net income, DCF, and adjusted EBITDA. Expansion was noted in the Wholesale segment, thanks to the acquisition of 29 terminals, which doubled storage capacity. The Gasoline Distribution and Station Operations (GDSO) segment also performed well, benefiting from healthy retail fuel margins and successful merchandising initiatives.
In addition to these developments, the company increased its quarterly cash distribution on common units by 6.7% over the previous year. However, operating expenses and SG&A expense rose due to acquisitions and higher professional fees. Interest expenses also increased due to the issuance of new senior notes and higher credit facility balances.
Despite some products in the Wholesale segment being negatively impacted by mark-to-market valuation in Q1, recovery was observed in Q2. Looking forward, Global Partners expects its CapEx for the full year of 2024 to range between $110 million to $130 million, allocated for maintenance and expansion. These are part of the recent developments at Global Partners, as the firm continues to focus on its strategic growth objectives.
InvestingPro Insights
Global Partners LP's recent quarterly cash distribution announcement aligns with its strong dividend history. According to InvestingPro Tips, the company has maintained dividend payments for 19 consecutive years and has raised its dividend for 3 consecutive years. This consistency in dividend payments is particularly noteworthy given the current dividend yield of 6.27%, as reported by InvestingPro Data.
The company's financial performance shows mixed signals. While Global Partners is profitable over the last twelve months, it operates with a significant debt burden and is quickly burning through cash, as highlighted by InvestingPro Tips. This financial situation may explain why the company's valuation implies a poor free cash flow yield, despite trading at a low revenue valuation multiple.
Global Partners' revenue for the last twelve months as of Q2 2024 stands at $17,185.25 million, with a modest revenue growth of 1.59% over the same period. However, the company's gross profit margin of 6.15% suggests it suffers from weak gross profit margins, which could be a concern for investors considering the company's long-term profitability.
It's worth noting that Global Partners has shown strong market performance, with a 66.84% price total return over the past year. This aligns with the InvestingPro Tip indicating a high return over the last year and a strong return over the last five years.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 10 tips available for Global Partners LP, providing a deeper understanding of the company's financial health and market position.
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