Outside customers fuel WIPT profit growth
INCREASED business from customers outside its parent group helped West Indies Petroleum Terminal Limited (WIPT) lift six-month net profit by 51 per cent, while reducing its dependence on related companies.
The terminal operator earned US$1.93 million for the six months ended June 30, 2026, compared with US$1.28 million a year earlier, according to its unaudited financial statements.
Revenue increased 21 per cent to US$5.05 million, supported by higher storage and throughput activity and increased rates on transactions with related companies.
The more significant change, however, was in where the revenue originated.
Third-party customers generated 63 per cent of WIPT’s revenue during the period, up from 39 per cent a year earlier. The increase was driven by stronger demand for both storage and the movement of fuel through the terminal.
Throughput volumes rose by more than half to 1.29 million barrels as WIPT handled more fuel for customers outside the West Indies Petroleum group.
The performance marks a shift for the company, which has historically relied heavily on business involving its parent and affiliated companies.
WIPT said increased bunkering activity by ultimate parent West Indies Petroleum Limited and higher volumes from immediate parent WIP Energy Limited also contributed to the results. Additional business came from an international fuel supplier operating through the terminal.
The company attributed some of the increased activity to disruptions in international oil markets associated with the conflict between the United States and Iran and what it described as the effective closure of the Strait of Hormuz.
According to WIPT, the resulting supply and logistics challenges created opportunities for its customers and increased demand for storage and throughput services at its Jamaican facility.
Operating profit and cash generated from the business also improved, while administrative and other expenses remained relatively stable.
The stronger cash flow lifted the company’s cash position and helped it settle balances owed to related companies, contributing to a reduction in total liabilities.
Although WIPT’s overall borrowings declined from a year earlier, a larger portion was classified as due within 12 months. This reflected secured US-dollar notes carrying interest of 12 per cent and maturing in 2027.
Shareholders’ equity increased as the company retained more of its earnings, partly offsetting the impact of depreciation and lower receivables from related companies on its asset base.
WIPT is incorporated in St Lucia and operates through West Indies Petroleum South Terminal, its wholly owned Jamaican subsidiary, which provides petroleum storage and distribution services.
The company is controlled by WIP Energy Limited, with World Energy Solutions Limited holding a minority stake.
