Westshore Terminals Income Fund - 2006 second quarter report

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\n\nVANCOUVER, Aug. 4 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN)\nannounced today its earnings for the second quarter ending June 30, 2006.\nPlease see attached Report to Unitholders for details.\n\nWestshore Terminals Income Fund\nSecond Quarter Report\nFor the six months ended June 30, 2006\n-------------------------------------------------------------------------\n\nDear Unitholders:\n\nThe cash inflows of Westshore Terminals Income Fund (the \"Fund\") are\nbased on the distributions received from the operations of Westshore Terminals\nLimited Partnership (\"Westshore\"). The earnings and distributable cash of the\nFund are wholly dependent on the results of Westshore. Westshore's results are\ndetermined largely by the volume of coal shipped by its coal mine customers\nfor sale in the export market, the rates charged by Westshore and Westshore's\ncosts. Westshore's throughput charges for approximately half of the coal it\nhandles are calculated at present by reference to coal prices. Higher prices\nfor hard coking coal resulted in Westshore's principal customer achieving much\nhigher average settlement prices for the 2005/06 coal year (ending March 31,\n2006) compared to the 2004/05 coal year. For the 2006/07 coal year,\nWestshore's principal customer is expecting to realize coal prices at\napproximately US$107 per tonne, down from prices of approximately US$122 in\nthe last coal year, but still up significantly compared to the 2004/05 coal\nyear. As Westshore has some exposure to fluctuations in exchange rates (as a\nresult of pricing mechanisms under its customer contracts), Westshore has\nengaged in limited currency hedging arrangements to provide some partial\nshielding from material short-term swings in the CDN/US dollar exchange rate.\n\n>\n\nThis management's discussion and analysis refers to certain measures\nother than those prescribed by Canadian Generally Accepted Accounting\nPrinciples (\"GAAP\"). These measures do not have standardized meanings and may\nnot be comparable to similar measures presented by other trusts or\ncorporations. They are however determined by reference to the Fund's financial\nstatements. These non-GAAP measures are discussed because the Fund believes\nthat they provide investors with valuable information in understanding the\nresults of the Fund's operations and financial p...

More updates from Westshore Terminals Investment Corporation