Westshore Terminals Income Fund - Q1 2009 distribution announcement

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\nVANCOUVER, March 17 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN)\n(the "Fund") announced today that a quarterly cash distribution of $17,820,003\n(representing $0.24 per trust unit) will be paid on or before April 15, 2009\nto unitholders of record on March 31, 2009 as compared to $20,790,004\n(representing $0.28 per trust unit) for the same period in 2008. The Q1 2009\ndistribution is solely derived from the operations of Westshore Terminals\nLimited Partnership.\n\n\nFor the first quarter of 2009, Westshore anticipates that its tonnage\nthroughput will be approximately 4.5 million tonnes as compared to 5.1 million\ntonnes for the same period in 2008. Based on the information currently\navailable, Westshore is forecasting for volumes in 2009 of approximately 18\nmillion tonnes compared to 21.1 million tonnes shipped in 2008, but volumes\nare particularly uncertain this year due to a number of factors. Teck Coal\n("Teck"), Westshore's largest customer, has not yet announced its average coal\nsales price, but Westshore is anticipating significantly lower average loading\nrates this year compared to 2008.\n\n\nBecause of a combination of possible variations in tonnage, the US dollar\ndenominated coal price and exchange rates, it is not possible for the Fund to\naccurately predict the level of its distributions for 2009. The Q1 2009\ndistribution approximates the budgeted average quarterly distribution for the\nyear. Actual quarterly distributions for the balance of 2009 will depend on\nthe average coal price settled by Teck, total volumes shipped through the\nterminal and the Canadian/US dollar exchange rate. Distributions for 2009 are\nanticipated to be materially lower than those in 2008 due to expected\nmaterially lower coal prices, which result in overall lower throughput rates,\nand due to lower volumes. Distributions will also be negatively impacted due\nto foreign exchange hedges entered into in 2008 which will limit the benefit\nof the lower Canadian dollar.\n\n\nFor 2009, it is anticipated that tonnages shipped at fixed rates are\nexpected to account for approximately 30% of the Terminal's throughput;\ntonnages shipped at variable rates but subject to a cap, in effect for this\nyear, are expected to account for 25% of throughput; and finally, tonnages\nshipped at full variable rates ar...

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