Global Partners Q2 Earnings Miss Estimates, Executes Strategic Priorities To Boost Competitive Position

Global Partners LP GLP reported Q2 2023 sales of $3.832 billion, missing the consensus of $4.09 billion.

EPS of $1.05 missed the consensus of $1.28. 

Total volume remained flat year over year to 1.3 billion gallons.

Adjusted EBITDA decreased to $91.6 million from $134.9 million a year ago.

Combined product margin (gross profit adjusted for depreciation allocated to cost of sales) came in at $265.6 million compared with $301.9 million a year ago.

Gasoline Distribution and Station Operations (GDSO) segment product margin was $199.1 million compared with $198.9 million a year ago. 

The wholesale segment product margin was $59.7 million compared with $90.5 million a year ago, primarily due to less favorable market conditions in distillates and residual oil.

The company exited the quarter with cash and equivalents worth $11.04 million. 

Outlook

"We have a healthy and well-capitalized balance sheet that continues to position us positively for long-term growth," said Eric Slifka, the Partnership's President and Chief Executive Officer. 

"Looking ahead, we remain focused on executing our strategic priorities to maintain our competitive position and drive value for our unitholders."

Price Action: GLP shares are trading lower by 2.28% to $33.07 on the last check Friday.