Westshore Terminals Income Fund - 2008 first quarter report

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\nVANCOUVER, May 2 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN)\nannounced today its earnings for the first quarter ending March 31, 2008.\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, 2008\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 U.S. dollar denominated price received by Westshore's\ncustomers for coal, the Canadian-U.S. dollar exchange rate and Westshore's\ncosts. Westshore's throughput charges for approximately 45% of the coal it\nhandles are calculated at present by reference to coal prices. Lower prices\nfor hard coking coal resulted in Elk Valley Coal Partnership (the "Coal\nPartnership"), which is Westshore's principal customer, achieving lower\naverage settlement prices for the 2007/08 coal year (ending March 31, 2008)\ncompared to the 2006/07 coal year. For the 2008/09 coal year, reference prices\nthat are publicly available to date are approximately US$300 per tonne, up\nsignificantly from prices of approximately US$91 in the 2007/08 coal year. The\nweighted average price for the 2008 calendar year for coal sales by the Coal\nPartnership, based on Fording Canadian Coal Trust's ("Fording") press release\ndated April 21, 2008 (owner of a 60% interest in the Coal Partnership) is\nexpected to be approximately US$195 to US$205 per tonne, up significantly from\nUS$96 in 2007. As Westshore has some exposure to fluctuations in exchange\nrates (as a result of pricing mechanisms under its customer contracts),\nWestshore engages in periodic currency hedging arrangements to provide some\npartial shielding from material short-term swings in the CDN/US dollar\nexchange 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...

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