WIPT Posts Softer Q3 Results as Throughput Volumes Decline

  • Bunker Fuel and Petroleum Logistics operator, West Indies Petroleum Terminal Limited (WIPT) reported a 25.3% year-on-year decline in Q3 2025 net profit to US$0.65Mn for the quarter ended September 30, 2025. The weaker outturn was primarily driven by lower throughput volumes, which more than offset stable cost control and inflation-linked tariff increases and weighed on revenues.
  • WIPT recorded Q3 revenues of US$2.23Mn, down 6.3% YoY, reflecting reduced throughput activity during the period. Management noted that the volume decline is temporary, citing an expected rebound following the waiver of the Common External Tariff (CET) for a major throughput client and increased activity from third-party customers.
  • The granting of the CET waiver is expected to be a primary catalyst for revenue growth in the final quarter of FY 2025. By removing the unified customs duty for a key throughput client, WIPT anticipates a normalisation of volumes that were deferred during the Q3 period. This, coupled with the onboarding of new third-party contracts, positions the company for a significantly stronger topline exit heading into 2026.
  • Operating profit (EBIT) declined 21.6% YoY to US$0.90Mn. The contraction largely mirrored the revenue decline, as operating and administrative expenses remained broadly flat year-on-year, demonstrating effective overhead control despite lower utilisation.
  • Finance costs showed modest improvement, with finance costs improving modestly falling to US$0.21Mn from US$0.26Mn in the prior-year quarter. This improvement reflects the repayment of an amortising bond in 2024, which reduced interest obligations.
  • The softer quarterly outturn translated into weaker year-to-date performance. For the nine months ended September 2025 (9M 2025), revenues slipped 3.0% YoY to US$6.50Mn, while net profit declined 6.4% to US$1.93Mn. This year-to-date (YTD) decline was largely attributable to an 18.9% decline in throughput volumes, which was partially offset by higher inflation-adjusted storage and throughput rates.
  • Structurally, WIPT’s revenue mix continued to improve, with non-related third-party customers accounting for 44% of revenues in 2025, up sharply from 9% in 2024. This reflects the successful acquisition of storage and throughput contracts from an oil supermajor supporting management’s outlook for more resilient and diversified earnings into 2026.
  • As at the close of trading on Wednesday, WIPT’s stock price closed at J$10.71, reflecting a 717.56% year-to-date increase. Since the commencement of public trading on the JSE, WIPT has experienced strong buying interest, pushing its valuation to a P/E of 828.1x, a significant premium compared to the Main Market Energy, Industrials and Materials sector average of 116.0x. This expansion has been driven predominantly by the sharp appreciation in the share price rather than growth in earnings per share of WIPT, with the rising P/E reflecting price momentum following WIPT’s entry into the sub-index.
  • WIPT’s share price increase is likely driven less by its underlying operating performance and more by market speculation, limited investor familiarity with the company’s business model, and the extreme scarcity of shares following its recent listing by introduction. This means that no shares were offered to investors as part of the listing. The extremely limited float has amplified price volatility and momentum-driven buying, resulting in market multiples that are not supported by current or near-term earnings.

(Sources: WIPT Financial Statements & NCBCM Research)