|J.P. Morgan||Jeremy Tonet|
|BofA Merrill Lynch||Derek Walker|
|Credit Suisse||John Edwards|
|Wells Fargo Securities||Praneeth Satish|
Below are answers to some FAQs which you may find useful. Please note that these are offered for general information only and should not be taken as advice. For personal financial guidance, you should consult your investment professional or tax adviser. For more information on VTTI Energy Partners LP please consult the pages on this website, and our investor presentations and SEC filings.
A Master Limited Partnership (MLP) is a publicly traded partnership in which there are two different types of partners:
For more information about MLPs, visit The National Association of Publicly Traded Partnerships at www.naptp.org.
MLPs make cash ‘distributions’, which are similar to dividends. These distributions, explained in detail below, are paid on a quarterly basis.
VTTI is a limited partnership formed in April 2014 by VTTI B.V., one of the world’s largest independent energy terminalling businesses, to own, operate, develop and acquire refined petroleum product and crude oil terminalling, and related energy infrastructure assets, on a global scale. Our initial assets consist of a 36% interest in VTTI Operating, which owns a portfolio of 6 terminals with 396 tanks and 35.5 million barrels of refined petroleum product and crude oil storage capacity. The portfolio spans Europe, the Middle East, Asia, and North America. When measured by total storage capacity it represents one of the largest independent portfolios of refined petroleum product and crude oil terminalling assets in the world.
Capitalising on our relationship with VTTI and its owners (Vitol and Buckeye Partners), our management team is dedicated to continuing growth through a strategy of acquisitions from VTTI or third parties, organic development opportunities, greenfield construction and optimisation of our existing assets.
Our primary business objective is to generate stable and predictable cash flows that will enable us to pay quarterly cash distributions to our unitholders, and to increase those distributions over time. We generate substantially all of our revenue from long-term, fee-based, take-or-pay contracts for the terminal storage and throughput of refined petroleum products and crude oil.
VTTI units are traded on the New York Stock Exchange (NYSE) and can be purchased through your broker or financial institution.
VTTI’s transfer agent is Computershare, Inc. They can be contacted by mail at:
P.O. Box 43078
Providence, RI 02940
Yes. Within 45 days of the end of each quarter, VTTI will distribute all available cash to unitholders of record on the applicable record date. ‘Available cash’ generally means all cash on hand at the end of the quarter (including VTTI’s proportionate share of cash on hand of any subsidiaries the company does not wholly own):
There is no guarantee, however, that VTTI will pay the minimum quarterly distribution on the common units and subordinated units in any quarter. Even if VTTI’s cash distribution policy is not modified or revoked, the amount of distributions paid under the policy, and the decision to make any distribution, is determined by the general partner.
Please read “How We Make Cash Distributions” in our Registration Statement filed on Form F-1 (No. 333-196907) with the Securities and Exchange Commission for more information relating to VTTI’s cash distributions.
VTTI’s cash distributions are paid within 45 days of the end of each quarter, beginning with the quarter ending September 30, 2014.
Although organised as a partnership, VTTI has elected to be treated as a corporation solely for U.S. federal income tax purposes. Consequently, U.S. limited partners will not be directly subject to U.S. federal income tax on our income, but rather on distributions received from VTTI. All or a portion of the distributions received from VTTI will constitute dividends for such purposes. The remaining portion of such distributions will be treated first as a non-taxable return of capital to the extent of your tax basis in your common units and, thereafter, as capital gain.
For tax and financial reporting purposes, VTTI’s fiscal year is the calendar year ending December 31. Earnings are reported on a quarterly basis.
VTTI provides long-term, fee-based terminalling services for third party companies engaged in the production, processing, distribution and marketing of refined petroleum products and crude oil. VTTI generates 100% of our revenue through the provision of fee-based services to our customers. VTTI’s fees comprise:
VTTI unitholders receive an annual 1099 pertaining to their dividend income (but no K-1).
Our corporate headquarters are located at:
25-27 Buckingham Palace Road
Tel +44 20 7973 4200