Huntway’s $3.58-Million Loss Blamed on Oil Prices

Huntway Partners L.P., suffering from the rapid rise in crude oil prices, reported a $3.58-million loss for the third quarter and suspended its distributions to unit-holders.

Huntway is a Valencia-based producer of liquid asphalt and other products that it refines from crude oil. It is organized as a master limited partnership whose ownership units are traded on the New York Stock Exchange. Its distributions are similar to dividends.

Oil prices have soared since Iraq invaded Kuwait on Aug. 2, and Huntway said its crude prices have tripled since July. However, Huntway said it has been unable to raise its prices enough to match the higher oil costs, which led to the loss.

As a result, Huntway said it would not pay a third-quarter distribution to owners of its preference units, and “until cash flow and liquidity improve, no distributions will be paid to preference or common unit-holders,” the company said. Huntway made a distribution to holders of its preference units in the second quarter, but it was cut to 10 cents per unit from the 34.5 cents paid early this year.

The latest loss in the quarter ended Sept. 30 compared with a year-earlier loss of $1.03 million, and came despite a 52% jump in Huntway’s revenue, to $35.7 million from $23.5 million.

In the first nine months of this year, Huntway lost $2.81 million, compared with a year-earlier loss of $835,000, and its nine-month revenue rose 32% to $86.0 million from $65.3 million.