Westshore Terminals Investment (WTE) Q4 2024 earnings summary

Executive summary

• 2024 throughput was 26.8 million tonnes, slightly below 2023 due to weather and maintenance, but above initial forecasts.

• Total revenue rose to $404.7 million, up from $381.0 million in 2023, driven by higher coal loading rates and a $21.3 million reservation fee recognized in Q4.

• Profit before taxes was $158.0 million, marginally down from $159.7 million in 2023; after-tax profit per share remained at $1.86.

• Significant progress was made on the potash project, with $545 million spent to date, reimbursed by BHP, and project completion expected in 2026.

• Regular quarterly dividends increased to $0.375 per share, and 744,909 shares were repurchased for $17.7 million.

Financial highlights

• Coal loading revenue increased 2.2% to $368.2 million; total revenue up 6.2% year-over-year.

• Operating and administrative expenses rose 2.8% to $224.9 million, impacted by inflation, labor adjustments, and potash project construction.

• Net finance costs increased to $17.3 million from $4.3 million, mainly due to lease revaluation.

• Cash flow from operations surged to $396.1 million from $189.6 million, aided by BHP project receipts.

• Dividends declared totaled $114.8 million ($1.85/share), up from $87.5 million ($1.40/share) in 2023.

Outlook and guidance

• 2025 throughput forecast at 26.5 million tonnes, average loading rate expected at $13.55/tonne.

• Potash project remains on schedule for 2026 completion, with meaningful revenue anticipated in 2027.

• Project cost overruns expected to reach $225 million above original budget, to be funded by cash reserves, operations, and released holdbacks.