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UK-headquartered storage terminal operator VTTI Energy Partners LP has posted a decline in net income of US$11.7 million during the last quarter of 2015.

Net income between October and December was $6.5 million compared with $18.2 million during the prior-year quarter.

Total operating income was down by $5.6 million to $28.1 million, having been $33.7 million during corresponding period in 2014.

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the fourth quarter of 2015 was $47.6 million, compared with the previous-year figure of $50.1 million.

In a statement, the company said in its financial and operating results overview: "The operating and financial performance of VTTI for the fourth quarter ended December 31, 2015, was largely consistent with the performance of the Partnership during the comparative period for last year and also the third quarter of 2015. Despite a strong underlying trading performance, results were impacted by a reduction in excess throughput revenue versus the comparative period for last year. The decrease in excess throughput revenue was driven by a change in the volume distribution mix across our customer contracts, although utilization and throughput levels remained high, assisted by a positive international terminal market."

Rob Nijst, Chief Executive Officer of VTTI, remarked: "Our market-leading terminal assets continue to perform superbly. Storage capacity was close to 100% utilization across the portfolio, with strong customer demand and a supportive market backdrop where we see contango pricing in a number of oil products. The fall in commodity prices has no direct impact on our business model and the key drivers of our business, global product demand and intra-regional flows, are continuing their long-term upward trajectory. Our issuance of the senior unsecured notes was another great result for the partnership, extending our debt maturities significantly at a very attractive cost of financing."

As of December 31, 2015, VTTI Energy Partners had cash and cash equivalents of $55.9 million and total bank debt outstanding of $541.6 million (excluding restricted cash and debt held by affiliates), implying an annualized net debt to Adjusted EBITDA ratio of 2.6x. There was an undrawn amount of approximately $287 million available under our 359-million-euro revolving credit facility. Following the year end December 31, 2015, the revolving credit facility was reduced to 300 million euros.

In an analysis of the company's position, Nijst remarked: "The outlook for VTTI is very positive, with strong demand for international storage capacity driven by a supportive market environment today and favourable underlying macro trends. Our highly flexible and efficient terminals have long-term contracts in place with strong counterparties that safeguard the future financial performance of the Partnership. Our targeted distribution growth remains unchanged and VTTI B.V. continues to pursue actively both greenfield and brownfield opportunities to add to our dropdown inventory."

VTTI Energy Partners' general partner is VTTI B.V., one of the world's largest independent storage businesses. The company operates a global storage capacity totalling 50.5 million barrels (8.8 million cubic metres), spread across 12 terminals in 5 continents.