Tidewater Midstream and Infrastructure (TWM) Q1 2025 earnings summary

Executive summary

• Q1 2025 was challenging with a consolidated net loss attributable to shareholders of CAD 31.8 million, up from CAD 11.3 million in Q1 2024, mainly due to lower refined product sales and margins, partially offset by lower depreciation, interest expense, and higher equity investment income.

• Adjusted EBITDA was CAD -3.7 million, a significant decline from CAD 39.8 million in Q1 2024, primarily due to weaker refined product sales and margins.

• Announced acquisition of the north segment of Pembina's Western Pipeline to secure reliable, lower-cost feedstock for the Prince George Refinery, with expected annual cost improvements of CAD 10–15 million.

• Transitioned to in-house marketing of refined products after expiration of a major offtake agreement, expanding customer base from a handful to over 30.

• Completed asset sales and credit facility amendments to enhance liquidity, financial flexibility, and deleveraging efforts.

Financial highlights

• Consolidated net loss attributable to shareholders was CAD 31.8 million in Q1 2025, compared to a net loss of CAD 11.3 million in Q1 2024.

• Adjusted EBITDA was CAD -3.7 million in Q1 2025, down from CAD 39.8 million in Q1 2024.

• Net loss per share was CAD -0.07 compared to CAD -0.03 in Q1 2024.

• Distributable cash flow attributable to shareholders was CAD -20.8 million, down from CAD 5.8 million in Q1 2024.

• Net debt increased to CAD 585.4 million from CAD 501.1 million year-over-year.

Outlook and guidance

• Throughput at Prince George Refinery expected to return to normal levels over the year, with management expecting normalization in Q2 2025.

• Volumes and margins anticipated to improve starting in Q2 2025 after a difficult Q1.

• Anticipates cost improvements of CAD 10–15 million annually from the Western Pipeline acquisition.

• Expects to benefit from improved refined product margins due to BC Low Carbon Fuels Act amendments.

• Focus on liquidity, reducing leverage, and prudent capital deployment for future investments.