Westshore Terminals Income Fund - 2010 second quarter report

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\n Aug. 5, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nVANCOUVER, Aug. 5 /CNW/ - Westshore Terminals Income Fund (TSX: WTE-UN) announced today its earnings for the second quarter ending June 30, 2010. Please see attached Report to Unitholders for details.\n\n\n >\n\n\nThe 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 US dollar denominated price received by Westshore's customers for coal, the CDN/US dollar exchange rate and Westshore's costs. In recent years, a substantial portion of Teck Coal's throughput was handled at loading rates that varied with the price of coal. However, as a result of an agreement concluded with Teck earlier this year, a smaller portion of Teck's throughput will be at variable loading rates in 2010, and for the 2011/12 coal year none of the contracts with Teck will provide for variable pricing. Lower prices for hard coking coal resulted in Teck, which is Westshore's principal customer, achieving lower average settlement prices for the 2009/10 coal year (ended March 31, 2010) compared to the 2008/09 coal year. For the 2010/11 coal year, prices that have been publicly announced to date, including Teck's release dated July 27, 2010, reflect coal prices which are now being settled quarterly (rather than annually) in the US$195-$225 per tonne range. 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.\n\n\n >\n\n\nThis management's discussion and analysis refers to certain measures other than...

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