Westshore Terminals Income Fund - 2007 first quarter report

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\nVANCOUVER, May 4 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN)\nannounced today its earnings for the first quarter ending March 31, 2007.\nPlease see attached Report to Unitholders for details.\n\n\nWestshore Terminals Income Fund\n\n\nFirst Quarter Report\n\n\nFor the three months ended March 31, 2007\n\n\n-------------------------------------------------------------------------\n\n\nThe earnings and distributable cash of Westshore Terminals Income Fund\n(the "Fund") are wholly dependent on the results of Westshore Terminals\nLimited Partnership ("Westshore"). Westshore's results are determined largely\nby the volume of coal shipped by its coal mine customers for sale in the\nexport market, the rates charged by Westshore and Westshore's costs.\nWestshore's throughput charges for approximately half of the coal it handles\nare calculated at present by reference to coal prices. Lower prices for hard\ncoking coal resulted in Elk Valley Coal Partnership (the "Coal Partnership"),\nwhich is Westshore's principal customer, achieving lower average settlement\nprices for the 2006/07 coal year (ending March 31, 2007) compared to the\n2005/06 coal year. For the 2007/08 coal year, reference prices that are\npublicly available to date are approximately US$91 per tonne, down\napproximately 15% from prices of approximately US$107 in the 2006/07 coal\nyear. The weighted average price of 2007 calendar year coal sales by the Coal\nPartnership is expected to be approximately US$96 per tonne, down from US$113\nin 2006. As Westshore has some exposure to fluctuations in exchange rates (as\na result of pricing mechanisms under its customer contracts), Westshore\nengages in periodic currency hedging arrangements to provide some partial\nshielding from material short-term swings in the CDN/US dollar exchange rate.\n\n\nWestshore Terminals Income Fund\n- Management's Discussion and Analysis of Financial Condition and\n Results of Operations\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 fin...

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