Tidewater Midstream and Infrastructure (TWM) Q4 2024 earnings summary

Executive summary

• Achieved another safe and reliable operational quarter, with consistent performance across downstream and midstream facilities.

• Transitioned to in-house marketing of all refined products after the expiry of a major offtake agreement.

• Completed several non-core asset sales and financings, strengthening liquidity and reducing leverage.

• Significant management and board changes implemented following a strategic review.

• Full-year 2024 net loss was $26.6 million, a significant improvement from $385.9 million in 2023, driven by reversals of non-cash impairments and higher operating income.

Financial highlights

• Reported a net loss attributable to shareholders of CAD 3.3 million in Q4 2024, a substantial improvement from CAD 331.8 million net loss in Q4 2023, mainly due to reversal of prior non-cash impairment charges.

• Consolidated adjusted EBITDA was $20.0 million in Q4 2024, down from $21.4 million in Q4 2023; full-year 2024 adjusted EBITDA was $134.3 million, down from $162.9 million in 2023.

• Distributable cash flow attributable to shareholders was $(3.1) million for 2024, compared to $(64.3) million in 2023.

• Net debt decreased to $577.6 million at year-end 2024 from $744.0 million at year-end 2023.

• Total capital expenditures for 2024 were $44.9 million, significantly lower than $292.6 million in 2023.

Outlook and guidance

• 2025 consolidated capital maintenance program expected to be CAD 15–20 million, mostly maintenance with minimal growth CapEx.

• No major turnaround scheduled at PGR until 2027; 2025 spend includes only routine maintenance.

• Anticipates improved market conditions for renewable diesel and emission credits due to regulatory changes and potential tariffs.

• Expects to maintain refinery utilization in the low to mid-90% range going forward.

• Management expects lower refining margins to persist until trade remedies address oversupplied diesel markets.