Genesis Energy Reports $63.9 Million Net Loss for Fiscal Year 2024

Genesis Energy, L.P. reported a net loss of $63.9 million for the fiscal year ending December 31, 2024, a significant decline from a net income of $117.7 million in 2023. This downturn was primarily attributed to decreased operating income across its segments, particularly due to lower export pricing in its Alkali Business, which was sold on February 28, 2025. The company also faced increased depreciation, depletion, and amortization expenses totaling $33 million, alongside an impairment expense of $43 million. Despite these challenges, cash flows from operating activities were $391.9 million, down from $521.1 million in the previous year, reflecting a decrease in Segment Margin of $154 million to $673 million.

In terms of strategic developments, Genesis Energy completed the sale of its Alkali Business for $1.425 billion, receiving approximately $1.039 billion in cash after adjustments. The proceeds from this sale are expected to be used to pay down debt and repurchase certain outstanding securities. Additionally, the company has been focusing on expanding its offshore pipeline capacity, with significant projects like the SYNC Pipeline and the expansion of the CHOPS Pipeline expected to come online in the first half of 2025. These initiatives are part of a broader strategy to enhance cash flow and reduce leverage.

Operationally, Genesis Energy's offshore pipeline transportation segment generated a Segment Margin of $332.8 million, down from $406.7 million in 2023, largely due to an economic step-down in transportation rates and increased operational costs. The company reported average throughput of 382,554 barrels per day across its offshore crude oil pipelines. In the soda and sulfur services segment, revenues decreased to $1.469 billion from $1.648 billion, with Segment Margin dropping to $183.5 million, reflecting lower export pricing and operational challenges. The marine transportation segment, however, saw an increase in Segment Margin to $125 million, driven by higher day rates and strong demand for barge services.

Looking ahead, Genesis Energy aims to leverage its recent strategic moves to stabilize and grow its cash flows. The company plans to complete its major growth capital spending program and is optimistic about the potential for new long-term contracts in the Gulf of America. Management has expressed confidence in the fundamentals of its core businesses, despite the ongoing volatility in global markets and commodity prices. The company is also focused on maintaining financial flexibility and reducing its overall cost of capital, which will be critical as it navigates the challenges posed by market conditions and regulatory changes.