Global Partners LP, a midstream logistics and marketing company, distributes gasoline, distillates, residual oil, and renewable fuels to wholesalers, retailers, and commercial customers in the New England states and New York. It operates in three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells branded and unbranded gasoline and gasoline blendstocks. It also offers home heating oil, kerosene, residual oil, and propane to home heating oil and propane retailers and wholesale distributors; and aggregates crude oil in the mid-continent region of the United States and Canada for distribution to refiners and other customers. The Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. As of December 31, 2016, this segment had a portfolio of 1,458 owned, leased, and/or supplied gasoline stations, which included 248 convenience stores in the Northeast, Maryland, and Virginia. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, bunker fuel, and natural gas to end user customers in the public sector, as well as to commercial and industrial end users; and sells custom blended fuels. The company also owns, leases, or maintains storage facilities at 25 bulk terminals with a collective storage capacity of 12.2 million barrels. Global GP LLC serves as the general partner of the company. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.
Business Analysis of Global Partners
The Oil & Gas Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Global Partners compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Global Partners to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Global Partners with an interactive chart.
- Revenue Growth: Global Partners reported a revenue growth of -20.1% year-on-year during 2016. Oil & Gas Distribution Industry grew at -12.3% in the same period
- COGS share of Revenues: As a percentage of revenue, Global Partners spent 93.4% of its total revenues on COGS. Oil & Gas Distribution industry average (COGS share of revenue) in the same period was 75.2%
- R&D share of Revenues: Global Partners R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Global Partners spent 1.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Oil & Gas Distribution industry average SG&A spending in the same period was 3.7%
- Inventory share of Revenues: As a percentage of revenue, Global Partners spent 6.3% of its total revenues on Inventories. Oil & Gas Distribution industry average Inventory spending in the same period was 4.8%
- Accounts Payable share of Revenues: As a percentage of revenue, Global Partners invested 3.9% of its total revenues on Accounts Payable (A/P) Oil & Gas Distribution industry average Accounts Payable investment in the same period was 10.1%
- Accounts Receivable share of Revenues: As a percentage of revenue, Global Partners invested 5.2% of its total revenues on Accounts Receivable (A/R). Oil & Gas Distribution industry average Accounts Receivable investment in the same period was 10.6%
- PP&E share of Revenues: As a percentage of revenue, Global Partners invested 13.3% of its total revenues on Property, Plants, and Equipments (PP&E). Oil & Gas Distribution industry average PPE investment in the same period was 155.8%
- Intangibles share of Revenues: As a percentage of revenue, Global Partners invested 4.4% of its total revenues on Intangibles. Oil & Gas Distribution industry average Intangibles investment in the same period was 39.0%
- Net Margins: Global Partners Net Margins in the year 2016 were -2.4%. Oil & Gas Distribution industry average Net Margins in the same period were 3.9%
Sector and Industry Association of Global Partners
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Global Partners is associated with Oil & Gas Sector and Oil & Gas Distribution Industry.
Oil & Gas sector is comprised of the following industries: Oil & Gas Production; Oil & Gas Distribution; Oil & Gas Equipment and Services; Alternative Energy. The definitions for each of the industries is as follows:
- Oil & Gas Production industry includes companies primarily engaged in operating oil & gas properties. Key activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. It also includes companies engaged in crude petroleum refining and producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil.
- Oil & Gas Distribution industry includes companies primarily engaged in the pipeline transportation of petroleum, natural gas, and other commodities. It also includes companies primarily engaged in the wholesale and retail distribution of petroleum and petroleum products.
- Oil & Gas Equipment and Services industry includes companies primarily engaged in drilling wells for oil or gas field operations for others on a contract or fee basis. It also includes companies providing exploration services and machinery & equipment for oil and gas field operations.
- Alternative Energy industry includes companies that develop or manufacture renewable energy equipment utilizing sources such as solar, wind, geothermal, hydro, and waves. It also includes companies that produce alternative fuels such as methanol, ethanol, hydrogen and biofuels that are mainly used to power vehicles.
Industry Ranking of Global Partners
With $8.2 billion revenues, Global Partners ranked number 13 of all the companies in the US Oil & Gas Distribution industry. There were a total of 69 public companies in the US Oil & Gas Distribution industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Oil & Gas Distribution industry by revenues during 2016 were:
- Energy Transfer Equity ($37.5 billion)
- World Fuel ($27 billion)
- Enterprise Products Partners ($23 billion)
- Energy Transfer Partners ($21.8 billion)
- Plains All American Pipeline ($20.2 billion)
- Plains GP Holdings ($20.2 billion)
- Sunoco ($15.7 billion)
- Kinder Morgan ($13.1 billion)
- NGL Energy Partners ($11.7 billion)
- Sunoco Logistics ($9.2 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Global Partnersand its peers on select key performance indicators by clicking the reports provided below