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Global Partners Reports ‘Solid 3rd Quarter’

Retailer sees fuel sales volume and store traffic grow as COVID restrictions ease
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WALTHAM, Mass. — Retailer and distributor Global Partners LP is crediting the loosening of COVID-19 restrictions for increases in fuel volume and activity in its convenience stores during its third quarter, which ended Sept. 30.

“GDSO (Gasoline Distribution and Station Operations) margins and volume posted double-digit percentage growth in the quarter, despite a significant increase in wholesale fuel prices year-over-year,” said President and CEO Eric Slifka. “In addition, we benefited from favorable market conditions in gasoline and distillates in our wholesale segment and increased volume and improved margins in our commercial segment.

“Margin growth in all three segments highlighted a solid third quarter that demonstrated the resilience of our integrated business model, from our terminal network to our retail portfolio,” he said “With COVID-19 restrictions eased, we continued to see improved demand across our portfolio.”

Net income was $33.6 million for third-quarter 2021 compared with $18.2 million for the same period in 2020.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $79.4 million for third-quarter 2021 compared with $65 million for the year-earlier period. Adjusted EBITDA for the three months ended Sept. 30, 2021, was $79.2 million compared with $65.9 million for third-quarter 2020.

Gross profit in third-quarter 2021 increased to $203.1 million from $169.2 million a year earlier, primarily reflecting higher product margins in the GDSO segment and more favorable market conditions in the wholesale segment, primarily in gasoline and gasoline blendstocks and other oils and related products, the company said.

GDSO segment product margin was $177.7 million in third-quarter 2021 compared with $158.9 million in third-quarter 2020, primarily reflecting an increase in fuel volume and increases in activity at the company’s convenience stores.

Wholesale segment product margin was $42.3 million in the third quarter of 2021 compared with $28.9 million in the third quarter of 2020, primarily reflecting more favorable market conditions in gasoline and distillates in the 2021 period. Commercial segment product margin was $3.9 million compared with $1.5 million in the third quarter of 2020, primarily driven by an increase in volume sold and improved margins.

Sales were $3.3 billion in the third quarter of 2021 compared with $2.0 billion in the same period of 2020, primarily due to an increase in prices. Wholesale segment sales increased to $1.8 billion in third-quarter 2021 from $1.2 billion in the year-earlier period. GDSO segment sales were $1.3 billion in third-quarter 2021 vs. $800 million in third-quarter 2020. Commercial segment sales were $202.5 million in third-quarter 2021 compared with $83.5 million in third-quarter 2020.

Volume in third-quarter 2021 was 1.3 billion gallons compared with 1.4 billion gallons in the same period of 2020. Wholesale segment volume was 813.4 million gallons in third-quarter 2021 and 916.7 million gallons in third-quarter 2020. GDSO volume was 416.8 million gallons in third-quarter 2021 compared with 376.3 million gallons in third-quarter 2020. Commercial segment volume was 101.2 million gallons in third-quarter 2021 compared with 60.9 million gallons in the year-earlier period.

During the quarter, the Global Partners acquired 14 convenience stores and CITGO-branded gas stations, predominantly in Vermont.

“Looking ahead, we are well positioned both financially and operationally as we prepare to close out 2021,” Slifka said. “While we remain mindful about the uncertainty of COVID-19, we are encouraged by the improved demand environment in our business. With global supply shortages and a sharp rise in prices creating challenges for natural gas heading into the winter months, our industry will have the opportunity to reinforce the benefits of liquid fuels as a reliable and cost-effective source of energy.”

With approximately 1,550 locations primarily in the Northeast, Waltham, Mass.-based Global Partners is one of the region’s largest independent owners, suppliers and operators of gas stations and c-stores. It operates approximately 280 convenience stores in the Northeast. Brands include Alltown, Alltown FreshXtraMartHoney FarmsJiffy MartT-BirdMr. Mike’sFast Freddie’sConvenience Plus and P&H Truck Stop.

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