VANCOUVER, March 18 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN) (the "Fund") announced today that a quarterly cash distribution of $20,790,004 (representing $0.28 per trust unit) will be paid on or before April 15, 2008 to unitholders of record on March 31, 2008 as compared to $16,706,254 (representing $0.225 per trust unit) for the same period in 2007. The Q1 2007 distribution contained a special distribution of $0.035 per unit representing a 2006 year end adjustment. The Q1 2008 distribution is solely derived from the operations of Westshore Terminals Limited Partnership.
For the first quarter of 2008, Westshore anticipates that its tonnage throughput will be approximately 5.1 million tonnes as compared to 4.5 million tonnes for the same period in 2007. Based on the information currently available, Westshore is budgeting for similar volumes in 2008 compared to 2007 and a somewhat higher average loading rate. However, Fording Income Trust ("Fording") has not yet announced its average coal sales price and any improvements to loading rates would not likely take effect until the second half of the year.
Because of a combination of possible variations in tonnage, the US dollar denominated coal price and exchange rates, it is not possible for the Fund to predict accurately the level of its distributions for 2008. The Q1 2008 distribution roughly approximates the average quarterly distribution for 2007. The variance year over year will be ultimately impacted by the average coal price settled by Fording and total volumes shipped through the terminal. Once these rates are announced, the Fund will be in a better position to provide guidance on distributions and sensitivities.
For 2008, it is anticipated that tonnages shipped at fixed rates are expected to account for approximately 25% of the Terminal's throughput; tonnages shipped at variable rates but subject to a cap, in effect for this year, are expected to account for 35% of throughput; and finally, tonnages shipped at full variable rates are expected to account for approximately 40% of throughput at the Terminal.
The foregoing statements concerning tonnages, coal prices, loading rates, taxation and variability of distributions are forward-looking statements but reflect the current expectations of the Fund and Westshore with respect to future events and performance. Wherever used, the words "may," "will," "anticipate," "intend," "expect," "plan," "believe," and similar expressions identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at which, such performance or results will be achieved.
Forward-looking statements are based on information available at the time they are made, assumptions made by management, and management's good faith belief with respect to future events, and are subject to the risks and uncertainties outlined in the Fund's annual information form that could cause actual performance or results to differ materially from those reflected in the forward-looking statements, historical results or current expectations. All forward-looking statements will be impacted by and are subject to the risks set out under Risk Factors in the Fund's annual information form.