Westshore Terminals Income Fund - 2009 third quarter report

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\nNov. 5, 2009 (Canada NewsWire Group) -- VANCOUVER, Nov. 5 /CNW/ -- Westshore Terminals Income Fund (TSX: WTE.UN) announced today its earnings for the third quarter ending September 30, 2009. Please see attached Report to Unitholders for details.Westshore Terminals Income FundThird Quarter ReportFor the nine months ended September 30, 2009-------------------------------------------------------------------------The earnings and distributable cash of Westshore Terminals Income Fund (the \"Fund\") are wholly dependent on the results of Westshore Terminals Limited Partnership (\"Westshore\"). Westshore's results are determined largely by the volume of coal shipped by its coal mine customers for sale in the export market, the U.S. dollar denominated price received by Westshore's customers for coal, the Canadian-U.S. dollar exchange rate and Westshore's costs. Westshore's throughput charges for a portion of the coal it handles are calculated at present by reference to coal prices. For 2009 as a whole, Westshore estimates the portion of coal handled at fully variable rates will be approximately 45% of its throughput. Higher prices for hard coking coal resulted in Teck Resources Limited (\"Teck\"), which is Westshore's principal customer, achieving higher average settlement prices for the 2008/09 coal year (ended March 31, 2009) compared to the 2007/08 coal year. For the 2009/10 coal year, prices are down significantly from prices in the 2008/09 coal year, but still at strong prices based on historical rates. As Westshore has some exposure to fluctuations in exchange rates (as a result of pricing mechanisms under its customer contracts), Westshore engages in periodic currency hedging arrangements to provide some partial shielding from material short-term swings in the CDN/US dollar exchange rate.Westshore Terminals Income FundManagement's Discussion and Analysis of Financial Conditionand Results of OperationsThis management's discussion and analysis refers to certain measures other than those prescribed by Canadian Generally Accepted Accounting Principles (\"GAAP\"). These measures do not have standardized meanings and may not be comparable to similar measures presented by other trusts or corporations. They are however determined by reference to the Fund's financial statements. These non-GAAP measures are discussed because the Fu...

More updates from Westshore Terminals Investment Corporation