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Port finance report: midyear revenues lag, GOSEP reimbursements expected to improve cash flow
Summary
Port finance staff reported $21.9M in revenue for the first six months (about $1.2M unfavorable), nonoperating write-offs tied to berth 4/5/6, and expected GOSEP reimbursements (total near-term submissions ~ $13.6M and additional ~$9.3M from higher payout percentage) that together could improve cash flow in coming weeks.
Mister Kemp, presenting the Port of Lake Charles midyear financials on July 22, reported $21.9 million in revenue for the six months ended June 2024, about $1.2 million below plan, and expenses of roughly $17.2 million. He said lower coke and cement tonnages drove the revenue shortfall, while write-offs related to berth 4, 5 and 6 produced a nonoperating expense of about $3.4 million.
Kemp reported first-half cash flow of approximately $4.2 million versus a budgeted $6.2 million and a projected full-year revenue of about $45 million with an unfavorable variance near $1.2 million. He reported anticipated reimbursements through GOSEP (state capital program): $300,000 already received, $7.2 million in finance completion, and another $6.4 million submitted and under review — together roughly $13.6 million in potential near-term receipts. Kemp said a negotiated change increased the reimbursement percentage from 18.6% to 40%, producing an expected additional payout of about $9.3 million on prior and future submissions; combined, those items could bring roughly $23 million of near-term cash inflows.
Kemp also noted construction progress on capital projects including Warehouse 300, the berth 4/5/6 project and the ship loader, and said cash on the balance sheet is down since December 2023 largely because of capital outlays and timing of reimbursements.
Board members reacted that the GOSEP reimbursement changes and pending Gosep/bond commission actions should help cash flow; Kemp said he expects improved liquidity in the coming weeks. The financial presentation closed with staff taking questions and no formal board action on these financial items at this meeting.
