Westshore Terminals Income Fund Second Quarter Report

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\nFor the six months ended June 30, 2008\n\n\nVANCOUVER, Aug. 7 /CNW/ - The earnings and distributable cash of\nWestshore Terminals Income Fund (the "Fund") are wholly dependent on the\nresults of Westshore Terminals Limited Partnership ("Westshore"). Westshore's\nresults are determined largely by the volume of coal shipped by its coal mine\ncustomers for sale in the export market, the U.S. dollar denominated price\nreceived by Westshore's customers for coal, the Canadian-U.S. dollar exchange\nrate and Westshore's costs. Westshore's throughput charges for approximately\n45% of the coal it handles are calculated at present by reference to coal\nprices (see particulars under "Outlook" section on page 7). Higher prices for\nhard coking coal have resulted in Elk Valley Coal Partnership (the "Coal\nPartnership"), which is Westshore's principal customer, achieving higher\naverage settlement prices for the 2008/09 coal year compared to the 2007/08\ncoal year. The weighted average price of 2008 calendar year coal sales by the\nCoal Partnership is expected to be approximately US$200 per tonne, up over\n100% from US$96 in 2007. As Westshore has some exposure to fluctuations in\nexchange rates (as a result of pricing mechanisms under its customer\ncontracts), Westshore engages in periodic currency hedging arrangements to\nprovide partial 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 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 determined by reference to the Fund's financial\nstatements. These non-GAAP measures are discussed because the Fund believes\nthat they provide investors with information in understanding the results of\nthe Fund's operations and financial position. The unaudited financial results\nalong with management's discussion and analysis contained in this report\nshould be read in conjunction with the audited consolidated financial\nstatements and...

More updates from Westshore Terminals Investment Corporation