VANCOUVER, BC, March 14, 2025 – Westshore Terminals Investment Corporation (TSX: WTE) (“Westshore” or the “Corporation”) has declared a dividend of $0.375 per share. This Q1 dividend is scheduled for payment on or before April 15, 2025, to shareholders who are on record as of March 31, 2025. For Canadian tax purposes, the Q1 2025 dividend will be considered an “eligible dividend.” The board will regularly assess factors influencing dividend levels, such as operating results, current and expected market conditions, the potential for share repurchases, other opportunities that may arise, and the financing of capital improvement projects.
The company projects volumes of approximately 26.5 million tonnes for 2025, based on currently available data. The estimated average loading charge for the year is $13.55.
Westshore has achieved significant progress in constructing the necessary infrastructure for shipping potash from BHP’s Jansen Mine. The company has invested $545 million in the project since its commencement up to the end of 2024. These expenses are being reimbursed by BHP, minus a 5% holdback as stipulated in the agreement. BHP’s reimbursement of Westshore’s costs is capped at the initially agreed-upon budget from 2021, which is approximately $1 billion. Westshore will not be reimbursed for costs incurred after this limit is reached to complete the project. Westshore anticipates contributing roughly $225 million for these additional expenses, expected to begin in Q2 2026 and continue until final supplier payments in mid-2027. The increased project costs are mainly due to higher-than-anticipated inflation since the 2021 budget and delays in outsourced design engineering, leading to increased labor and other costs to maintain the project’s timeline. The Corporation foresees no liquidity issues resulting from Westshore’s obligation to cover the potash project cost overruns and plans to finance a significant portion through its cash reserves, operational cash flows, and funds released from the 5% holdback. Any remaining funds needed will be acquired through borrowing. The project remains on track for completion in 2026, with Westshore anticipating substantial revenue from potash handling starting in 2027.
The aforementioned statements regarding anticipated throughput volumes and loading rates, dividend levels, payment timing and Westshore’s capital contribution to the potash project, Westshore’s ability to fund and the funding sources for the potash project capital contribution, the potash project schedule, and the start date for significant revenue from potash handling are forward-looking statements. These reflect the Corporation’s current expectations about future events and performance. Forward-looking statements should not be considered guarantees of future performance or results and may not accurately predict whether such performance or results will be achieved.
Forward-looking statements are based on information available at the time of their creation, assumptions made by management, and management’s good faith belief regarding future events. They are subject to the risks and uncertainties detailed in the Corporation’s Annual Information Form, which could cause actual performance or results to differ significantly from those expressed in the forward-looking statements, historical results, or current expectations.
SOURCE Westshore Terminals Investment Corporation
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