VANCOUVER, March 17 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN) (the "Fund") announced today that a quarterly cash distribution of $17,820,003 (representing $0.24 per trust unit) will be paid on or before April 15, 2009 to unitholders of record on March 31, 2009 as compared to $20,790,004 (representing $0.28 per trust unit) for the same period in 2008. The Q1 2009 distribution is solely derived from the operations of Westshore Terminals Limited Partnership.
For the first quarter of 2009, Westshore anticipates that its tonnage throughput will be approximately 4.5 million tonnes as compared to 5.1 million tonnes for the same period in 2008. Based on the information currently available, Westshore is forecasting for volumes in 2009 of approximately 18 million tonnes compared to 21.1 million tonnes shipped in 2008, but volumes are particularly uncertain this year due to a number of factors. Teck Coal ("Teck"), Westshore's largest customer, has not yet announced its average coal sales price, but Westshore is anticipating significantly lower average loading rates this year compared to 2008.
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 accurately predict the level of its distributions for 2009. The Q1 2009 distribution approximates the budgeted average quarterly distribution for the year. Actual quarterly distributions for the balance of 2009 will depend on the average coal price settled by Teck, total volumes shipped through the terminal and the Canadian/US dollar exchange rate. Distributions for 2009 are anticipated to be materially lower than those in 2008 due to expected materially lower coal prices, which result in overall lower throughput rates, and due to lower volumes. Distributions will also be negatively impacted due to foreign exchange hedges entered into in 2008 which will limit the benefit of the lower Canadian dollar.
For 2009, it is anticipated that tonnages shipped at fixed rates are expected to account for approximately 30% 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 25% of throughput; and finally, tonnages shipped at full variable rates are expected to account for approximately 45% 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.