Profits steady at Global Partners, but costs expected to rise

Global Partners LP of Waltham said rising costs bit into fourth-quarter profit and warned that weak demand and high prices for refined products will have a "significant negative impact" on results this quarter.

The company, which distributes refined petroleum products and natural gas, said its net income for the quarter ended Dec. 31 slipped less than 1 percent to $11 million.

Revenue climbed to $2.2 billion from $1.1 billion.

Shares of Global Partners fell $3.80, or 14.5 percent, to $22.50.

Chief Executive Eric Slifka nonetheless labeled it a "solid quarter," in which Global Partners shifted focus toward transportation fuels and other "non-weather related products." The company also expanded by acquiring four storage terminals from Exxon Mobil Corp.

However, Slifka said the company is seeing higher costs for petroleum products in the current quarter, as well as waning demand because of high energy prices and warmer weather.

"This higher price environment is prompting meaningful energy conservation and reducing the number of fixed-price sales," Slifka said. He added that those factors will have "a significant negative impact" first-quarter results.
(AP)