Genesis Energy Reports Decline in Revenues and Net Income for Q3 and Nine Months of 2024

Genesis Energy, L.P. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues were $714.3 million, down from $807.6 million in Q3 2023. The nine-month revenue also decreased to $2.24 billion from $2.40 billion year-over-year. This decline was attributed to reduced fee-based revenues and product sales, particularly in the Alkali Business, which faced lower export pricing and operational challenges.

Operating income for Q3 2024 fell to $50.2 million from $111.7 million in Q3 2023, while net income attributable to Genesis Energy, L.P. showed a significant loss of $17.2 million, compared to a profit of $58.1 million in the prior year. For the nine months, net income attributable to Genesis Energy, L.P. was a loss of $14.6 million, down from a profit of $105.8 million in 2023. The decrease in profitability was influenced by increased interest expenses, which rose by $10.4 million due to higher rates on senior unsecured notes, and a $13.5 million increase in depreciation, depletion, and amortization expenses.

The company’s total assets increased slightly to $7.06 billion as of September 30, 2024, from $7.02 billion at the end of 2023. However, total liabilities also rose to $5.46 billion from $5.31 billion, with senior unsecured notes increasing to $3.42 billion from $3.06 billion. Partners’ capital decreased to $780.8 million from $897.2 million, reflecting the impact of net losses.

Strategically, Genesis Energy has been active in managing its debt. In May 2024, the company issued $700 million in senior unsecured notes due in 2032, using the proceeds to redeem existing notes and repay part of its senior secured credit facility. Additionally, a new $900 million senior secured revolving credit facility was established in July 2024, enhancing liquidity.

Operationally, the company reported mixed results across its segments. The Offshore Pipeline Transportation segment saw a significant margin decrease due to lower export pricing and increased operating costs, while the Marine Transportation segment experienced a margin increase driven by higher day rates. The Soda and Sulfur Services segment also faced challenges, with revenues declining due to lower sales volumes and pricing pressures.

Overall, Genesis Energy's financial results reflect a challenging market environment, particularly in its Alkali Business, alongside increased costs and interest expenses impacting profitability.