Durrant Pate/Contributor

West Indies (WI) Petroleum Terminal, which is the newest listed public company on the Jamaica Stock Exchange, is reporting a 119% increase in profit for its just-ended 2025 financial year, overcoming the challenges brought on by the passage of Hurricane Mellisa in the last quarter of the year.

Despite the damage caused by the Category 5 storm, the path of the hurricane did not result in any damage or disruption to WI Petroleum storage terminal at Port Esquivel in Old Harbour, St Catherine, and as a result, delivery from the terminal commenced on October 30, 2025, two days after the tropical cyclone. Operating profit closed on US$0.9 million, representing an increase of US$1.37 million compared to 2024. 

Earnings before interest, tax and depreciation (EBITA), which is a measure of a company’s profitability, for the fourth quarter amounted to US$1.36 million, an increase of US$ 1.6 million. Total revenues climbed to US$2.5 million, reflecting an increase of US$0.9 million or 63%, compared to the corresponding quarter in FY2024. Admin and other expenses were below the amount reported for Q4 of 2024 by US$0.5 million, as the petroleum storage and distribution company continues to exercise strong expense management. 

Profitability hit by big impairment

Quarterly net profit tax improved by US$1.4 million to US$0.4 million, as there was a one-time impairment of a financial asset of US$1.03 million in Q4 2024. Quarterly net finance costs declined by US$0.1 million. The overall improved 4th quarter results were driven by higher throughput volumes because of higher customer demand for throughput services post-hurricane Melissa and during the Christmas holiday.

This was in addition to higher throughput rates and improved revenue mix. For the full year, the company achieved net profits of US$2.3M, an improvement of US$1.3 million or 119% over FY2024. The improved full year results were due to increased topline growth driven by higher throughput volumes, improved revenue mix and the non-recurrence of the impairment of the financial asset in FY 2024. Total revenues closed the year on US$9 million, up from US$8.4 million for FY2024, representing an increase of US$0.6 million or 7% year over year. 

The company’s revenue mix improved in FY2025 with storage fees earned from 3rd parties growing to US$3.8 million or 43% of total storage fee revenues compared to US$1.1 million or 13% in the prior year. Throughput revenues from 3rd parties as a percentage of total revenue increased from zero in FY2024 to US$0.7 million or 8% of total revenue in FY2025. 

Full 2025 financial year performance

This was the direct result of two new contracts that commenced in Q1 2025. Quarterly throughput volumes were 0.68 million barrels (mbbls) compared with 0.5 mbbls in Q4 2024. Year-to-date throughput volumes were slightly down to 2.04 mbbls from 2.18 mbbls in the full year of 2024. EBITA for the full year grew to US$5.4 million, coming from USS$4.1 million for FY2024, representing an increase of US$1.3 million or 32% year over year. 

Finance costs for the year declined by US$0.2 million compared to FY2024, which was due to the repayment in Q4 2024 of maturing bond obligations. Related party throughput went up 5%, related party storage, up 44%; third party throughput, advancing 8%, while third party storage grew 43% during FY 2025. Year-over-year increase in other receivables of US$0.7 million, driven mainly by the increase in storage and throughput fees from non-affiliated 3rd parties.

The year-over-year increase in due from related parties of US$1.6 million is directly attributable to the storage and throughput fees due by its immediate parent company, WIP Energy Limited. During the year, there was a reduction in the current portion of borrowings of US$0.6 million, due primarily to the repayment of maturing bonds in December 2025. 

For the full year, there was a decline in total non-current assets of US$1.4 million, due mainly to depreciation of plant & equipment and amortisation. There was also an increase in other receivables year-over-year of US$0.7 million, driven mainly by the increase in storage and throughput fees from non-affiliated 3rd parties.