Genesis Energy reported a miss on third quarter revenue compared to analyst estimates, while its net loss for common unitholders was narrower than expected. Results were negatively impacted by unplanned producer maintenance and underperformance at the Shenandoah project, which offset gains from the Salamanca facility start-up. Management indicated that full-year Adjusted EBITDA is likely to fall near or below the low end of original guidance due to early October hurricane disruptions and continuing volume challenges.
Key Highlights
- Offshore Pipeline Transportation segment margin decreased 4% to $97.8 million, driven by producer downtime and volumes at Shenandoah falling below minimum volume commitments.
- Marine Transportation segment margin rose 12% to $28.7 million, benefiting from 100% utilization and robust spot rates for offshore and inland barges.
- Bank-calculated leverage ratio ended the quarter at 5.03x, significantly above the long-term target of 4.0x, with management prioritizing debt retirement of high-cost capital.