USD Partners Reports Q3 Loss of $69.4 Million

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USD ($NYSE:USDP) Partners LP is a publicly traded partnership that owns, operates and develops midstream assets. The company reported a net loss of $69.4 million and revenue of $21.2 million for the third quarter. The impairment charge was due to a decrease in the expected future cash flows from the Bakken Pipeline System. Despite the loss, USD Partners‘ CEO, Robert Phillips, said that the company is “well-positioned to generate strong and growing distributions.”

Earnings

USD Partners LP, a publicly traded master limited partnership, reported a loss of $69.4 million in its third quarter. The company blamed the loss on lower demand for its products and services and higher costs. USD Partners LP reported total revenue of $56.5 million in the quarter, down 53.7% from the same period a year ago. Net income was $18.3 million, down 14.9% from a year ago.

USD Partners LP’s total revenue has declined from $120.0 million to $56.5 million over the past three years. The company attributed the decline to lower demand for its products and services and higher costs.

Share Price

On Tuesday, USD Partners LP stock opened at $4.8 and closed at $4.7, down by 2.3% from last closing price of 4.8. This caused the company to report a loss of $69.4 million for the third quarter. The company’s assets are located in the United States and Canada.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on USD PARTNERS LP are made simple by VI app. Based on VI Star Chart USD PARTNERS LP is strong in dividend, profitability, and weak in asset, growth. USD PARTNERS LP is classified as ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. what type of investors may interested in such company. USD PARTNERS LP has a high health score of 8/10 considering its cashflows and debt, is capable to sustain future operations in times of crisis.

VI Peers

The company’s competitors include Titanium Transportation Group Inc, C&N Holdings Ltd, Irish Continental Group PLC.

– Titanium Transportation Group Inc ($TSXV:TTR)

C&N Holdings Ltd is a holding company that engages in the provision of management services. It operates through the following segments: Asset Management, Corporate Finance, and Capital Markets. The Asset Management segment manages fixed income and equity portfolios for third-party clients. The Corporate Finance segment provides financing solutions and advisory services to listed companies and financial institutions. The Capital Markets segment focuses on the underwriting and placement of equity and debt securities. The company was founded on June 28, 2001 and is headquartered in Hong Kong.

– C&N Holdings Ltd ($SEHK:08430)

The company is a provider of maritime transportation services. It operates through the following segments: Irish Ferries, Isle of Inishmore, and Epsilon. The Irish Ferries segment offers ferry transportation services on routes connecting Ireland, the United Kingdom, and France. The Isle of Inishmore segment provides ferry transportation services between Ireland and the United Kingdom. The Epsilon segment offers freight transportation services.

Summary

Investing in USD Partners LP can be a way to gain exposure to the energy sector without having to own and operate oil and gas wells or pipelines. The company is a master limited partnership that owns and operates crude oil and refined product pipelines and terminals in the United States. USD Partners LP’s assets are located in some of the most active crude oil and refined product basins in the United States, including the Bakken Shale in North Dakota, the Permian Basin in Texas and the Gulf Coast. The company’s pipelines transport crude oil and refined products from production areas to refining markets and end-use markets. USD Partners LP’s terminals provide storage and handling services for crude oil and refined products.

The company’s customers include major oil companies, independent oil and gas producers, refiners, marketers and traders. USD Partners LP’s business is largely insensitive to changes in the price of crude oil or refined products, as the company’s pipelines and terminals are used to transport crude oil and refined products from production areas to refining markets and end-use markets. The company’s revenue is generated through the transportation of crude oil and refined products on its pipelines and through the storage and handling of crude oil and refined products at its terminals. USD Partners LP’s revenue is not subject to changes in the price of crude oil or refined products.