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Genesis Energy, L.P. Reports Second Quarter 2025 Results
Genesis Energy, L.P. (NYSE: GEL) today announced its second quarter results. We generated the following financial results for the second quarter of 2025: Net Loss Attributable to Genesis Energy, L.P. of $0.4 million for the second quarter of 2025 compared to Net Loss Attributable to Genesis Energy, L.P. of $8.7 million for the same period in 2024. Cash Flows from Operating Activities of $47.0 million for the second quarter of 2025 compared to $104.7 million for the same period in 2024. We declared cash distributions on our preferred units of $0.9473 for each preferred unit, which equates to a cash distribution of approximately $14.9 million and is reflected as a reduction to Available Cash before Reserves to common unitholders. Available Cash before Reserves to common unitholders of $32.2 million for the second quarter of 2025, which provided 1.59X coverage for the quarterly distribution of $0.165 per common unit attributable to the second quarter. Total Segment Margin of $135.9 million for the second quarter of 2025. Adjusted EBITDA of $122.9 million for the second quarter of 2025. Adjusted Consolidated EBITDA of $555.4 million for the trailing twelve months ended June 30, 2025 and a bank leverage ratio of 5.52X, both calculated in accordance with our senior secured credit agreement and discussed further in this release. Grant Sims, CEO of Genesis Energy, said, 'The second quarter was generally in-line with our expectations, driven primarily by sequential improvement in our offshore pipeline transportation segment as several of the previously shut-in wells returned to service in addition to collecting one month's contribution from our minimum volume commitments from the Shenandoah development. More importantly, because we are in the business of actually moving oil, I am extremely happy to report on the successful commissioning and start-up of the Shenandoah production facility which delivered first oil to our new SYNC pipeline lateral and downstream through our expanded CHOPS pipeline just last week. While initial production was delayed a number of weeks due to some commissioning challenges, including persistent loop currents in the Gulf of America affecting sub-sea activities early in the quarter, the operator has successfully brought on-line the first of four previously drilled and completed wells. We anticipate the remaining wells will be brought online in the coming weeks, with production ramping steadily and likely to achieve initial anticipated peak production of 90-100 kbd. This important milestone is the culmination of over three years of hard work and dedication from our entire team, and I could not be prouder of their collective effort. Looking ahead, Salamanca remains on track to achieve first oil by the end of the third quarter. The operator, who has been largely dependent on some of the same support equipment and vessels that are currently working on Shenandoah, has been progressing through their safety checks and pre-commissioning activities, including their sub-sea connection to our SEKCO pipeline lateral in advance of first production. Similar to Shenandoah, we expect Salamanca's production to ramp very quickly over the subsequent few months after first production to its initial peak design of 40-50 kbd. Despite both Shenandoah and Salamanca experiencing some timing delays, these two new developments remain central to the Genesis story over the next 12 to 18 months. With the anticipated increase in our offshore pipeline transportation segment margin, the completion of our growth capital expenditures, and continued steady performance from our legacy businesses, we remain well positioned to generate increasing amounts of free cash flow in excess of the cash costs of running our businesses starting in the third quarter. We exited the second quarter with approximately $72 million outstanding on our senior secured revolving credit facility, which included approximately $36 million of hedged inventory and was a reflection of a high working capital quarter. This included several significant cash outlays such as the full redemption of our senior unsecured notes due 2027, final growth capital associated with our offshore expansion projects, and multiple semi-annual cash interest payments on our outstanding senior unsecured notes. Importantly, we expect to use the estimated free cash flow to begin paying down the revolver balance in the third quarter, and we anticipate exiting the year with no outstanding borrowings under such facility. The combination of growing Segment Margin and a lower absolute debt balance is also expected to drive sequential improvement in our bank calculated leverage ratio over the remainder of the year and throughout 2026. We remain steadfast in our commitment to creating long-term value for all stakeholders. As our financial flexibility and liquidity continue to improve, we intend to take an all-of-the-above approach to capital allocation. This includes the reduction of debt in absolute terms, the possible redemption of our high-cost corporate preferreds, and the potential for increased distributions to our common unitholders in future quarters. At the same time, we will remain disciplined and balanced, preserving the ability to evaluate and pursue incremental commercial opportunities that align with our long-term strategic objectives. With that, I will briefly discuss our individual business segments in more detail. During the quarter, our offshore pipeline transportation segment saw an uplift in activity as a couple of the previously impacted offshore wells that had been down due to producer mechanical issues were brought back online and are now flowing again on our pipelines. While a couple of the high margin wells remain offline, the producers continue to have deepwater drilling rigs on location that are actively working to restore the production in conjunction with drilling new development wells that will also be tied into these existing production facilities. Notwithstanding the ramp in volumes from Shenandoah and Salamanca, the base volumes from these impacted fields as we exited the second quarter were greater than what we saw when we exited the first quarter, and we would expect to see this upward trend continue with the expectation of the remaining work being completed, by and large, by the end of the third quarter. There is no doubt these delays have been unfortunate. While the remediation efforts have lagged behind our original expectations, we believe there continues to be no lasting impact on the underlying reservoirs, and we will ultimately transport all of the oil production on our systems once all these issues are successfully addressed by the various operators. Despite recent fluctuations in commodity prices, we continue to experience strong activity levels from our producer customers in the central Gulf of America. While the number of active onshore drilling rigs has declined in recent weeks, perhaps more rapidly than some anticipated, we have seen no change in the number of rigs actively working offshore in the deepwater. This underscores the structural resilience of deepwater development, where investment decisions are based on long-cycle planning rather than short-term price movements. Many of our producer customers remain focused on maximizing output from existing facilities while advancing a robust backlog of sub-sea tieback and development drilling opportunities. We remain actively engaged in commercial discussions to connect several of these new opportunities to our offshore infrastructure throughout the remainder of this year and into next. Given the long-term nature of these developments, and the increasingly economic break-even costs, we do not expect continued price weakness or any additional near-term macroeconomic headwinds to significantly alter deepwater activity in the Gulf of America for the foreseeable future. Our marine transportation segment performed in line with expectations during the second quarter. Market fundamentals for our inland, or brown water, fleet remain constructive. While refinery profitability was challenged during the quarter and refinery crude slates, particularly in the Midwest, shifted, and heavy to light differentials narrowed on the Gulf Coast, market conditions continue to be supported by limited to no net additions of Jones Act-qualified tonnage. Looking ahead, we expect to see a robust refinery turnaround season in the third and fourth quarters, which should drive increased demand for our brown water equipment. In contrast, market conditions in the blue water market have softened somewhat in recent months. This shift is largely driven by an increase in available equipment along the Gulf and East Coasts, as larger operators redeploy vessels that were otherwise working in West Coast markets. The added tonnage, coupled with a slowdown in clean product demand moving to the East Coast, has kept utilization relatively stable. However, these factors have tempered our ability to continue to push day rates higher as term charters come up for renewal. Looking ahead, while market conditions remain mixed, we believe the fundamentals of our marine transportation segment are sound and should be supportive throughout the remainder of this year and in the years to come. Our onshore transportation and services segment performed in line with expectations during the quarter. We experienced higher than anticipated volumes through both our Texas system and Raceland terminal, driven by increased refinery demand in both Texas City and South Louisiana. Beginning in the third quarter, we could see a modest increase in volumes through both our Texas City and Raceland terminals as new production from Shenandoah and Salamanca comes online and quickly ramps. Our legacy sulfur services business also performed as expected, though results were modestly impacted by an unplanned turnaround at our primary host facility in Westlake, Louisiana. This was partially offset by strong operating performance in June, driven in large part by the continued strength in pulp and paper demand. As we look at the back half of the year, I would like to briefly touch on the financial impact of both the extended outages related to producer mechanical issues, which we have referenced for several quarters, and the unfortunate timing delays in receiving first oil from both Shenandoah and Salamanca. While these factors have been entirely outside of our control, they have nonetheless delayed the timing of when we will realize the full financial benefit of these volumes on our pipeline systems. Based on our current visibility into final remediation efforts, the expected timing of first production from both new developments and their anticipated pace of ramping production, we now reasonably expect full-year 2025 Adjusted EBITDA to be at or near the low end of our prior guidance range of $545–$575 million (1). More importantly, these delays are all temporary in nature and are not expected to have any lasting impact on our ability to generate increasing Adjusted EBITDA and free cash flow in 2026 and beyond. The management team and board of directors remain steadfast in our commitment to building long-term value for everyone in the capital structure, and we believe the decisions we are making reflect this commitment and our confidence in Genesis moving forward. I would once again like to recognize our entire workforce for their efforts and unwavering commitment to safe and responsible operations. I'm proud to have the opportunity to work alongside each and every one of you.' Financial Results Segment Margin Segment Margin In the first quarter of 2025, we reorganized our operating segments as a result of the way our chief operating decision maker (our Chief Executive Officer) evaluates the performance of operations, develops strategy and allocates resources, including capital. Our sulfur services business, formerly reported under our Soda and Sulfur Services reporting segment with our trona and trona-based exploring, mining, processing, producing, marketing, logistics and selling business based in Wyoming (the 'Alkali Business'), is now reported under our onshore transportation and services reporting segment along with our previously reported onshore facilities and transportation segment. As a result of this change, we now manage our businesses through the following three divisions that constitute our reportable segments: Offshore pipeline transportation, which includes the transportation and processing of crude oil and natural gas in the Gulf of America; Marine transportation, which provides waterborne transportation of petroleum products (primarily fuel oil, asphalt and other heavy refined products) and crude oil throughout North America; and Onshore transportation and services, which includes terminaling, blending, storing, marketing, and transporting crude oil and petroleum products, as well as the processing of high sulfur (or 'sour') gas streams for refineries to remove the sulfur, and selling the related by-product, sodium hydrosulfide (or 'NaHS,' commonly pronounced 'nash'). Variances between the second quarter of 2025 (the '2025 Quarter') and the second quarter of 2024 (the '2024 Quarter') in these components are explained below. Segment Margin results for the 2025 Quarter and 2024 Quarter were as follows: Offshore pipeline transportation Segment Margin for the 2025 Quarter increased $1.5 million, or 2%, from the 2024 Quarter primarily due to several factors including: (i) the commencement of contractual minimum volume commitments ('MVC's') on our 100% owned SYNC Pipeline and 64% owned CHOPS Pipeline associated with the deepwater Shenandoah development that began in June 2025 and contributed to our reported Segment Margin; and (ii) an increase in volumes on our CHOPS Pipeline primarily related to production from the Warrior and Winterfell projects, which produced first oil in late June 2024 and early July 2024, respectively. Production volumes from the Shenandoah floating production system ('FPS') are life-of-lease dedicated to our 100% owned SYNC Pipeline and further downstream to our 64% owned CHOPS Pipeline. The Shenandoah FPS achieved first oil production in late July 2025, but we were able to recognize our MVC's that began in the 2025 Quarter in Segment Margin. We expect the Shenandoah FPS to ramp up to its design capacity over the remainder of the year as the operator brings additional wells on-line. These increases to Segment Margin in the 2025 Quarter were partially offset by: (i) an economic step-down in the rate on a certain existing life-of-lease transportation dedication; (ii) producer underperformance at several of the major fields attached to our pipeline infrastructure; and (iii) an increase in our operating costs. At the beginning of the third quarter of 2024, we reached the 10-year anniversary of a certain existing life-of-lease transportation dedication, which resulted in the contractual economic step-down of the associated transportation rate. In addition, there was an increase in producer downtime in the 2025 Quarter relative to the 2024 Quarter as a result of several wells being shut in due to certain sub-sea operational and technical challenges. The production from these wells impacted our results as they are molecules that we touch multiple times throughout our oil and natural gas pipeline infrastructure. Marine transportation Segment Margin for the 2025 Quarter decreased $1.7 million, or 5%, from the 2024 Quarter. We experienced slightly lower utilization rates during the 2025 Quarter in our inland barge services primarily due to a slight decline in Midwest refinery demand for black oil equipment as a result of changing crude slates. This was partially offset by fewer dry-docking days in our offshore fleet during the 2025 Quarter and a higher contractual rate on our M/T American Phoenix in the 2025 Quarter as compared to the 2024 Quarter. Our offshore bluewater business began to experience pressure on day rates during the 2025 Quarter and as we entered the third quarter as certain third-party vessels were relocated to the East and Gulf coasts from the West Coast markets. Onshore transportation and services Segment Margin for the 2025 Quarter decreased $1.8 million, or 9%, from the 2024 Quarter primarily due to lower NaHS and caustic soda sales volumes. This decrease was partially offset by an increase in rail unload volumes at our Scenic Station facility and an overall increase in volumes on our onshore crude oil pipeline systems, principally driven by an increase in volumes on our Texas pipeline system, which is a key destination point for various grades of crude oil produced in the Gulf of America including those transported on our 64% owned CHOPS Pipeline. Other Components of Net Income (Loss) We reported Net Income from Continuing Operations of $10.0 million in the 2025 Quarter compared to Net Loss from Continuing Operations of $4.0 million in the 2024 Quarter. Net Income from Continuing Operations in the 2025 Quarter was impacted by: (i) an increase in operating income from our operating segments; (ii) a decrease in interest expense, net, of $3.8 million; and (iii) a decrease in general and administrative expenses of $3.6 million relative to the 2024 Quarter. These were partially offset by an increase in depreciation and amortization of $4.7 million during the 2025 Quarter and an increase in other expense of $7.5 million primarily related to the premium associated with the redemption of our 2027 Notes in April 2025. We reported Net Income from Discontinued Operations, net of tax of $2.6 million during the 2024 Quarter associated with the Alkali Business that was sold on February 28, 2025. Earnings Conference Call We will broadcast our Earnings Conference Call on Thursday, July 31, 2025, at 9:00 a.m. Central time (10:00 a.m. Eastern time). This call can be accessed at Choose the Investor Relations button. For those unable to attend the live broadcast, a replay will be available beginning approximately one hour after the event and remain available on our website for 30 days. There is no charge to access the event. Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis' operations include offshore pipeline transportation, marine transportation and onshore transportation and services. Genesis' operations are primarily located in the Gulf of America and in the Gulf Coast region of the United States. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 COSTS AND EXPENSES: Costs of sales and operating costs 238,984 310,934 518,509 623,235 General and administrative 14,744 18,299 55,386 32,999 Depreciation and amortization 55,905 51,167 112,076 100,558 OPERATING INCOME 67,715 49,779 89,688 107,834 Equity in earnings of equity investees 12,330 12,213 24,822 28,654 Interest expense, net (60,754 ) (64,539 ) (130,792 ) (126,873 ) Other expense (8,935 ) (1,429 ) (9,779 ) (1,429 ) Income (loss) from continuing operations before income taxes 10,356 (3,976 ) (26,061 ) 8,186 Income tax benefit (expense) (345 ) 11 (489 ) (798 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS 10,011 (3,965 ) (26,550 ) 7,388 Income from discontinued operations, net of tax — 2,578 8,448 10,181 Loss from disposal of discontinued operations — — (432,193 ) — NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX — 2,578 (423,745 ) 10,181 NET INCOME (LOSS) 10,011 (1,387 ) (450,295 ) 17,569 Net income attributable to noncontrolling interests (10,417 ) (7,357 ) (19,186 ) (14,960 ) NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. $ (406 ) $ (8,744 ) $ (469,481 ) $ 2,609 Less: Accumulated distributions and returns attributable to Class A Convertible Preferred Units (14,868 ) (21,894 ) (43,270 ) (43,788 ) NET LOSS ATTRIBUTABLE TO COMMON UNITHOLDERS $ (15,274 ) $ (30,638 ) $ (512,751 ) $ (41,179 ) NET INCOME (LOSS) PER COMMON UNIT: Net loss from continuing operations per common unit - Basic and Diluted $ (0.12 ) $ (0.27 ) $ (0.73 ) $ (0.42 ) Net income (loss) from discontinued operations per common unit - Basic and Diluted — 0.02 (3.46 ) 0.08 Net loss per common unit - Basic and Diluted $ (0.12 ) $ (0.25 ) $ (4.19 ) $ (0.34 ) WEIGHTED AVERAGE OUTSTANDING COMMON UNITS: Basic and Diluted 122,464,318 122,464,318 122,464,318 122,464,318 GENESIS ENERGY, L.P. OPERATING DATA - UNAUDITED Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Offshore Pipeline Transportation Segment Crude oil pipelines (average barrels/day unless otherwise noted): CHOPS (1) 324,533 296,325 318,787 297,319 Poseidon (1) 248,785 280,248 246,566 286,085 Odyssey (1) 71,309 64,213 67,545 63,955 GOPL 1,383 1,465 1,532 1,911 Offshore crude oil pipelines total 646,010 642,251 634,430 649,270 Natural gas transportation volumes (MMBtus/day) (1) 403,703 357,687 402,739 382,621 Marine Transportation Segment Inland Barge Utilization Percentage (2) 98.1 % 100.0 % 95.9 % 100.0 % Offshore Barge Utilization Percentage (2) 97.3 % 94.9 % 96.8 % 97.0 % Onshore Transportation and Services Segment Crude oil pipelines (average barrels/day): Texas (3) 98,626 65,229 80,377 74,923 Jay 4,036 5,332 4,181 5,396 Mississippi 1,059 2,789 1,124 2,800 Louisiana (4) 48,178 56,172 43,203 64,514 Onshore crude oil pipelines total 151,899 129,522 128,885 147,633 Crude oil product sales (average barrels/day) 15,366 21,702 17,655 22,570 Rail unload volumes (average barrels/day) 24,979 19,811 22,748 10,526 NaHS volumes (Dry short tons 'DST') 23,256 29,656 49,129 58,693 NaOH (caustic soda) volumes (DST sold) 8,678 10,593 17,223 20,951 (1) As of June 30, 2025 and 2024, we owned 64% of CHOPS, 64% of Poseidon and 29% of Odyssey, as well as equity interests in various other entities. Volumes are presented above on a 100% basis for all periods. (2) Utilization rates are based on a 365-day year, as adjusted for planned downtime and dry-docking. (3) Our Texas pipeline and infrastructure is a destination point for many pipeline systems in the Gulf of America, including the CHOPS pipeline. (4) Total daily volumes for the three months ended June 30, 2025 and June 30, 2024 include 16,403 and 19,356 Bbls/day, respectively, of intermediate refined products and 31,775 and 36,269 Bbls/day, respectively, of crude oil associated with our Port of Baton Rouge Terminal pipelines. Total daily volumes for the six months ended June 30, 2025 and June 30, 2024 include 17,500 and 24,766 Bbls/day, respectively, of intermediate refined petroleum products and 25,703 and 39,059 Bbls/day, respectively, of crude oil associated with our Port of Baton Rouge Terminal pipelines. (in thousands, except unit amounts) June 30, 2025 December 31, 2024 (unaudited) ASSETS Cash and cash equivalents $ 4,452 $ 7,352 Accounts receivable - trade, net 499,590 479,504 Inventories 58,184 37,782 Other 25,082 18,789 Current assets held for discontinued operations — 368,307 Total current assets 587,308 911,734 Fixed assets, net of accumulated depreciation 3,525,628 3,539,886 Equity investees 228,682 240,368 Intangible assets, net of amortization 80,449 85,287 Goodwill 301,959 301,959 Right of use assets, net 58,605 65,739 Other assets 55,907 53,606 Non-current assets held for discontinued operations — 1,839,113 Total assets $ 4,838,538 $ 7,037,692 LIABILITIES AND CAPITAL Accounts payable - trade $ 414,436 $ 388,245 Accrued liabilities 207,469 254,202 Current liabilities held for discontinued operations — 216,308 Total current liabilities 621,905 858,755 Senior secured credit facility 71,600 291,000 Senior unsecured notes, net of debt issuance costs, discount and premium 3,035,915 3,436,860 Deferred tax liabilities 16,764 16,575 Other long-term liabilities 374,950 389,161 Long-term liabilities held for discontinued operations — 529,558 Total liabilities 4,121,134 5,521,909 Mezzanine capital: Class A Convertible Preferred Units 552,523 813,589 Partners' capital (deficit): Common unitholders (273,274 ) 279,891 Accumulated other comprehensive income — 9,486 Noncontrolling interests 438,155 412,817 Total partners' capital 164,881 702,194 Total liabilities, mezzanine capital and partners' capital $ 4,838,538 $ 7,037,692 Common Units Data: Total common units outstanding 122,464,318 122,464,318 (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Income (loss) from continuing operations before income taxes $ 10,356 $ (3,976 ) $ (26,061 ) $ 8,186 Net income attributable to noncontrolling interests (10,417 ) (7,357 ) (19,186 ) (14,960 ) Corporate general and administrative expenses 15,068 19,405 56,744 34,616 Depreciation, amortization and accretion 59,011 53,940 118,022 106,103 Interest expense, net 60,754 64,539 130,792 126,873 Adjustment to include distributable cash generated by equity investees not included in income and exclude equity in investees net income (1) 5,595 4,879 11,687 11,687 Unrealized gains on derivative transactions excluding fair value hedges, net of changes in inventory value (133 ) (289 ) (204 ) (42 ) Other non-cash items (4,229 ) (2,474 ) (6,951 ) (4,601 ) Loss on extinguishment of debt 8,935 1,429 9,779 1,429 Differences in timing of cash receipts for certain contractual arrangements (2) (9,071 ) 7,820 (17,358 ) 15,892 Total Segment Margin (3) $ 135,869 $ 137,916 $ 257,264 $ 285,183 (1) Includes distributions attributable to the quarter and received during or promptly following such quarter. (2) Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. (3) See definition of Segment Margin later in this press release. (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) attributable to Genesis Energy, L.P. $ (406 ) $ (8,744 ) $ (469,481 ) $ 2,609 Interest expense, net 60,754 64,539 130,792 126,873 Income tax expense (benefit) 345 (11 ) 489 798 Depreciation, amortization and accretion 59,011 53,940 118,022 106,103 Loss from disposal of discontinued operations — — 432,193 — Interest expense and income tax expense from discontinued operations — 6,364 4,195 12,764 Other non-cash items from discontinued operations, net (1) — 20,853 15,584 39,843 EBITDA 119,704 136,941 231,794 288,990 Plus (minus) Select Items, net (2) 3,195 11,937 22,784 22,964 Adjusted EBITDA (3) 122,899 148,878 254,578 311,954 Maintenance capital utilized (4) (14,750 ) (18,200 ) (31,650 ) (36,300 ) Interest expense, net (60,754 ) (64,539 ) (130,792 ) (126,873 ) Cash tax expense (300 ) (300 ) (557 ) (600 ) Distributions to preferred unitholders (5) (14,868 ) (21,894 ) (34,810 ) (43,788 ) Interest expense and income tax expense from discontinued operations — (6,364 ) (4,195 ) (12,764 ) Available Cash before Reserves (6) $ 32,227 $ 37,581 $ 52,574 $ 91,629 (1) Includes non-cash items such as depreciation, depletion and amortization and unrealized gains or losses on derivative transactions, amongst other non-cash items attributable to discontinued operations. (2) Refer to additional detail of Select Items later in this press release. (3) See definition of Adjusted EBITDA later in this press release. (4) Maintenance capital expenditures for the 2025 Quarter and 2024 Quarter were $16.8 million and $29.4 million, respectively, which excludes maintenance capital expenditures of $17.7 million for the 2024 Quarter associated with the Alkali Business that was sold on February 28, 2025. Maintenance capital expenditures for the six months ended June 30, 2025 and 2024, were $39.4 million and $44.5 million, respectively, which excludes maintenance capital expenditures of $4.6 million and $29.1 million for the six months ended June 30, 2025 and 2024, respectively, associated with the Alkali Business. Our continuing maintenance capital expenditures are principally associated with our marine transportation business. (5) Distributions to preferred unitholders attributable to the 2025 Quarter are payable on August 14, 2025 to unitholders of record at close of business on July 31, 2025. (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cash Flows from Operating Activities $ 46,987 $ 104,721 $ 71,792 $ 230,642 Adjustments to reconcile net cash flows from operating activities to Adjusted EBITDA: Interest expense, net (1) 60,754 70,870 134,971 139,604 Amortization and write-off of debt issuance costs, premium and discount (3,549 ) (4,486 ) (7,406 ) (7,370 ) Effects from equity method investees not included in operating cash flows 5,797 4,007 11,949 11,687 Net effect of changes in components of operating assets and liabilities 37,691 (20,759 ) 70,059 (49,232 ) Non-cash effect of long-term incentive compensation plans (3,153 ) (5,471 ) (5,638 ) (9,786 ) Expenses related to business development activities and growth projects 310 37 25,518 60 Differences in timing of cash receipts for certain contractual arrangements (2) (9,071 ) 7,820 (17,358 ) 15,892 Other items, net (3) (12,867 ) (7,861 ) (29,309 ) (19,543 ) Adjusted EBITDA (4) $ 122,899 $ 148,878 $ 254,578 $ 311,954 (1) Includes interest expense, net of $60.8 million and $130.8 million from continuing operations for the three and six months ended June 30, 2025, respectively, and includes interest expense, net of $4.2 million from discontinued operations for the six months ended June 30, 2025. Includes interest expense, net of $64.5 million and $126.9 million from continuing operations for the three and six months ended June 30, 2024, respectively, and includes interest expense, net of $6.4 million and $12.7 million from discontinued operations for the three and six months ended June 30, 2024, respectively. (2) Includes the difference in timing of cash receipts from or billings to customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. For purposes of our non-GAAP measures, we add those amounts in the period of payment and deduct them in the period in which GAAP recognizes them. (3) Includes adjustments associated with the noncontrolling interest effects of our non-100% owned consolidated subsidiaries as our Adjusted EBITDA measure is reported net to our ownership interests, amongst other items. (4) See definition of Adjusted EBITDA later in this press release. (in thousands) June 30, 2025 Senior secured credit facility $ 71,600 Senior unsecured notes, net of debt issuance costs and discount 3,035,915 Less: Outstanding inventory financing sublimit borrowings (36,000 ) Less: Cash and cash equivalents (3,448 ) Adjusted Debt (1) $ 3,068,067 Pro Forma LTM June 30, 2025 Consolidated EBITDA (per our senior secured credit facility) $ 535,717 Consolidated EBITDA adjustments (2) 19,717 Adjusted Debt-to-Adjusted Consolidated EBITDA 5.52X (1) We define Adjusted Debt as the amounts outstanding under our senior secured credit facility and senior unsecured notes (including any unamortized discounts or issuance costs) less the amount outstanding under our inventory financing sublimit, and less cash and cash equivalents on hand at the end of the period from our restricted subsidiaries. (2) This amount reflects adjustments we are permitted to make under our senior secured credit facility for purposes of calculating compliance with our leverage ratio. It includes a pro rata portion of projected future annual EBITDA associated with material organic growth projects. For any material organic growth project not yet completed or in-service, the EBITDA Adjustment is calculated based on the percentage of capital expenditures incurred to date relative to the expected budget multiplied by the total annual contractual minimum cash commitments we expect to receive as a result of the project. Additionally, it includes the pro forma adjustments to Adjusted Consolidated EBITDA (using historical amounts in the test period) associated with the sale of the Alkali Business. These adjustments may not be indicative of future results. (3) Adjusted Consolidated EBITDA for the four-quarter period ending with the most recent quarter, as calculated under our senior secured credit facility. This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Actual results may vary materially. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including but not limited to statements relating to future financial and operating results, liquidity and capital expenditures, anticipated benefits from the sale of the Alkali Business, distributions to our unitholders or other capital allocation plans or expectations, the timing or anticipated benefits of the Shenandoah and Salamanca developments, production rates or volumes or refinery demand, the expected performance of our offshore assets and other projects and business segments, the impact of proposed or increased tariffs or lower commodity prices on our business, and our strategy and plans, are forward-looking statements, and historical performance is not necessarily indicative of future performance. Those forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside our control, that could cause results to differ materially from those expected by management. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for products (which may be affected by the actions of OPEC and other oil exporting nations), impacts due to inflation, increased tariffs and proposed tariffs, taxes, duties and similar matters affecting international trade, a reduction in demand for our services resulting in impairments of our assets, the spread of disease, the impact of international military conflicts (such as the war in Ukraine, the Israel and Hamas war and broader geopolitical tensions in the Middle East and Eastern Europe), the result of any economic recession or depression that has occurred or may occur in the future, anticipated benefits of the SYNC pipeline and expansion of the capacity of the CHOPS system, the timing and success of business development efforts and other uncertainties. Those and other applicable uncertainties, factors and risks that may affect those forward-looking statements are described more fully in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission and other filings, including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement. NON-GAAP MEASURES This press release and the accompanying schedules include non-generally accepted accounting principle (non-GAAP) financial measures of Adjusted EBITDA and total Available Cash before Reserves. In this press release, we also present total Segment Margin as if it were a non-GAAP measure. Our non-GAAP measures may not be comparable to similarly titled measures of other companies because such measures may include or exclude other specified items. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the United States of America (GAAP). Our non-GAAP financial measures should not be considered (i) as alternatives to GAAP measures of liquidity or financial performance or (ii) as being singularly important in any particular context; they should be considered in a broad context with other quantitative and qualitative information. Our Available Cash before Reserves, Adjusted EBITDA and total Segment Margin measures are just three of the relevant data points considered from time to time. When evaluating our performance and making decisions regarding our future direction and actions (including making discretionary payments, such as quarterly distributions) our board of directors and management team have access to a wide range of historical and forecasted qualitative and quantitative information, such as our financial statements; operational information; various non-GAAP measures; internal forecasts; credit metrics; analyst opinions; performance; liquidity and similar measures; income; cash flow expectations for us; and certain information regarding some of our peers. Additionally, our board of directors and management team analyze, and place different weight on, various factors from time to time. We believe that investors benefit from having access to the same financial measures being utilized by management, lenders, analysts and other market participants. We attempt to provide adequate information to allow each individual investor and other external user to reach her/his own conclusions regarding our actions without providing so much information as to overwhelm or confuse such investor or other external user. AVAILABLE CASH BEFORE RESERVES Purposes, Uses and Definition Available Cash before Reserves, often referred to by others as distributable cash flow, is a quantitative standard used throughout the investment community with respect to publicly traded partnerships and is commonly used as a supplemental financial measure by management and by external users of financial statements such as investors, commercial banks, research analysts and rating agencies, to aid in assessing, among other things: (1) the financial performance of our assets; (2) our operating performance; (3) the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry; (4) the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and (5) our ability to make certain discretionary payments, such as distributions on our preferred and common units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness. We define Available Cash before Reserves ('Available Cash before Reserves') as Adjusted EBITDA adjusted for certain items, the most significant of which in the relevant reporting periods have been the sum of maintenance capital utilized, interest expense, net, cash tax expense and cash distributions paid to our Class A Convertible Preferred unitholders. Disclosure Format Relating to Maintenance Capital We use a modified format relating to maintenance capital requirements because our maintenance capital expenditures vary materially in nature (discretionary vs. non-discretionary), timing and amount from time to time. We believe that, without such modified disclosure, such changes in our maintenance capital expenditures could be confusing and potentially misleading to users of our financial information, particularly in the context of the nature and purposes of our Available Cash before Reserves measure. Our modified disclosure format provides those users with information in the form of our maintenance capital utilized measure (which we deduct to arrive at Available Cash before Reserves). Our maintenance capital utilized measure constitutes a proxy for non-discretionary maintenance capital expenditures and it takes into consideration the relationship among maintenance capital expenditures, operating expenses and depreciation from period to period. Maintenance Capital Requirements Maintenance Capital Expenditures Maintenance capital expenditures are capitalized costs that are necessary to maintain the service capability of our existing assets, including the replacement of any system component or equipment which is worn out or obsolete. Maintenance capital expenditures can be discretionary or non-discretionary, depending on the facts and circumstances. Prior to 2014, substantially all of our maintenance capital expenditures were (a) related to our pipeline assets and similar infrastructure, (b) non-discretionary in nature and (c) immaterial in amount as compared to our Available Cash before Reserves measure. Those historical expenditures were non-discretionary (or mandatory) in nature because we had very little (if any) discretion as to whether or when we incurred them. We had to incur them in order to continue to operate the related pipelines in a safe and reliable manner and consistently with past practices. If we had not made those expenditures, we would not have been able to continue to operate all or portions of those pipelines, which would not have been economically feasible. An example of a non-discretionary (or mandatory) maintenance capital expenditure would be replacing a segment of an old pipeline because one can no longer operate that pipeline safely, legally and/or economically in the absence of such replacement. Beginning with 2014, we believe a substantial amount of our maintenance capital expenditures from time to time will be (a) related to our assets other than pipelines, such as our marine vessels, trucks and similar assets, (b) discretionary in nature and (c) potentially material in amount as compared to our Available Cash before Reserves measure. Those expenditures will be discretionary (or non-mandatory) in nature because we will have significant discretion as to whether or when we incur them. We will not be forced to incur them in order to continue to operate the related assets in a safe and reliable manner. If we chose not to make those expenditures, we would be able to continue to operate those assets economically, although in lieu of maintenance capital expenditures, we would incur increased operating expenses, including maintenance expenses. An example of a discretionary (or non-mandatory) maintenance capital expenditure would be replacing an older marine vessel with a new marine vessel with substantially similar specifications, even though one could continue to economically operate the older vessel in spite of its increasing maintenance and other operating expenses. In summary, as we continue to expand certain non-pipeline portions of our business, we are experiencing changes in the nature (discretionary vs. non-discretionary), timing and amount of our maintenance capital expenditures that merit a more detailed review and analysis than was required historically. Management's increasing ability to determine if and when to incur certain maintenance capital expenditures is relevant to the manner in which we analyze aspects of our business relating to discretionary and non-discretionary expenditures. We believe it would be inappropriate to derive our Available Cash before Reserves measure by deducting discretionary maintenance capital expenditures, which we believe are similar in nature in this context to certain other discretionary expenditures, such as growth capital expenditures, distributions/dividends and equity buybacks. Unfortunately, not all maintenance capital expenditures are clearly discretionary or non-discretionary in nature. Therefore, we developed a measure, maintenance capital utilized, that we believe is more useful in the determination of Available Cash before Reserves. Maintenance Capital Utilized We believe our maintenance capital utilized measure is the most useful quarterly maintenance capital requirements measure to use to derive our Available Cash before Reserves measure. We define our maintenance capital utilized measure as that portion of the amount of previously incurred maintenance capital expenditures that we utilize during the relevant quarter, which would be equal to the sum of the maintenance capital expenditures we have incurred for each project/component in prior quarters allocated ratably over the useful lives of those projects/components. Our maintenance capital utilized measure constitutes a proxy for non-discretionary maintenance capital expenditures and it takes into consideration the relationship among maintenance capital expenditures, operating expenses and depreciation from period to period. Because we did not use our maintenance capital utilized measure before 2014, our maintenance capital utilized calculations will reflect the utilization of solely those maintenance capital expenditures incurred since December 31, 2013. ADJUSTED EBITDA Purposes, Uses and Definition Adjusted EBITDA is commonly used as a supplemental financial measure by management and by external users of financial statements such as investors, commercial banks, research analysts and rating agencies, to aid in assessing, among other things: (1) the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; (2) our operating performance as compared to those of other companies in the midstream energy industry, without regard to financing and capital structure; (3) the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry; (4) the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and (5) our ability to make certain discretionary payments, such as distributions on our preferred and common units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness. We define Adjusted EBITDA ('Adjusted EBITDA') as Net income (loss) attributable to Genesis Energy, L.P. before interest, taxes, depreciation, depletion and amortization (including impairment, write-offs, accretion and similar items) after eliminating other non-cash revenues, expenses, gains, losses and charges (including any loss on asset dispositions), plus or minus certain other select items that we view as not indicative of our core operating results (collectively, 'Select Items'). Although we do not necessarily consider all of our Select Items to be non-recurring, infrequent or unusual, we believe that an understanding of these Select Items is important to the evaluation of our core operating results. The most significant Select Items in the relevant reporting periods are set forth below. The table below includes the Select Items discussed above as applicable to the reconciliation of Net income (loss) attributable to Genesis Energy, L.P. to Adjusted EBITDA and Available Cash before Reserves: (in thousands) I. Applicable to all Non-GAAP Measures Differences in timing of cash receipts for certain contractual arrangements (1) $ (9,071 ) $ 7,820 $ (17,358 ) $ 15,892 Certain non-cash items: Unrealized gains on derivative transactions excluding fair value hedges, net of changes in inventory value (133 ) (289 ) (204 ) (42 ) Loss on debt extinguishment 8,935 1,429 9,779 1,429 Adjustment regarding equity investees (2) 5,595 4,879 11,687 11,687 Other (4,229 ) (2,474 ) (6,951 ) (4,601 ) Sub-total Select Items, net (3) 1,097 11,365 (3,047 ) 24,365 II. Applicable only to Adjusted EBITDA and Available Cash before Reserves Certain transaction costs 310 37 25,518 60 Other 1,788 535 313 (1,461 ) Total Select Items, net (4) $ 3,195 $ 11,937 $ 22,784 $ 22,964 (1) Includes the difference in timing of cash receipts from or billings to customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. For purposes of our non-GAAP measures, we add those amounts in the period of payment and deduct them in the period in which GAAP recognizes them. (2) Represents the net effect of adding distributions from equity investees and deducting earnings of equity investees net to us. (3) Represents Select Items applicable to all Non-GAAP measures. (4) Represents Select Items applicable to Adjusted EBITDA and Available Cash before Reserves. SEGMENT MARGIN Our chief operating decision maker (our Chief Executive Officer) evaluates segment performance based on a variety of measures including Segment Margin, segment volumes, and, where relevant, capital investment. We define Segment Margin ('Segment Margin') as revenues less product costs, operating expenses and segment general and administrative expenses (all of which are net of the effects of our noncontrolling interest holders), plus or minus applicable Select Items. Although, we do not necessarily consider all of our Select Items to be non-recurring, infrequent or unusual, we believe that an understanding of these Select Items is important to the evaluation of our core operating results.
JAMnews
a day ago
- Politics
- JAMnews
In six months, Georgia passed five laws restricting media. Here's a breakdown
Laws restricting the media in Georgia In the spring session of 2025 alone, the Georgian Dream-dominated parliament rushed through five legislative amendments that significantly restrict media activity and free speech in Georgia. These laws effectively ban foreign-funded media, tighten state control over outlets, and allow authorities to punish journalists for criticizing the government. There are already first cases of these laws being applied in practice. For example, one Georgian media outlet was unable to receive grant funding it had won through a competition, journalists were summoned to court and fined for critical social media posts, and more. In this article, we explain which new laws and legislative amendments Georgian Dream has passed and how they restrict the work of independent media. Foreign Agents Registration Act (FARA) The 'Foreign Agents Registration Act' (FARA), which Georgian Dream calls a Georgian version of the US FARA and claims is a word-for-word translation, was introduced on February 19, 2025, and passed on April 1. However, unlike its American counterpart, which targets lobbying organizations, the Georgian FARA specifically targets media outlets and civil society organizations. The Georgian FARA requires media outlets receiving foreign funding to register in a dedicated registry (already established by the Ministry of Justice) as 'agents of a foreign power (principal).' If an organization fails to register, it faces a fine of 10,000 GEL [$3,690]. After that, it will be fined 20,000 GEL [about $7,380] monthly for failing to submit a financial declaration. Additionally, any individual or employee connected to such an organization who is asked by law enforcement to provide information under special supervision but refuses will be fined 5,000 GEL [about $1,845]. 🟥 The law also includes criminal liability: directors or board members face up to 5 years in prison if the organization is not registered. It's important to understand that independent media in Georgia cannot survive through self-funding—it's simply not possible. They all rely on international grants, meaning that with the adoption of Georgian FARA, such outlets will likely cease to exist. FARA came into force 60 days after its adoption, on June 1. Previously, Georgian Dream passed a similar law called the 'Transparency of Foreign Influence Act,' but it failed to work—no independent media outlet or civil society organization registered as a 'foreign agent.' Amendments to the Georgian Broadcasting Law On April 1, parliament unanimously adopted another legislative package – amendments to the Law on Broadcasting – that bans broadcasters from receiving foreign funding. The ban covers not only grants but also services purchased from broadcasters by a 'foreign power,' as well as direct or indirect funding or co-funding of program production and broadcasting. Accepting foreign funding in exchange for airing social ads is also prohibited. Due to an underdeveloped advertising market in Georgia, government pressure, and other factors, many TV and radio channels have long struggled with a lack of advertising revenue. Statistics show ad shares are shrinking on critical channels while growing on state-run broadcasters. These changes, therefore, pose a major threat to independent broadcasters. 🟥 The amendments also strengthen censorship risks by granting the National Communications Commission the authority to interfere in media content. For example, the Commission can now assess issues such as factual accuracy, impartiality, fairness, and the right of reply in media reports. Exactly two months after these amendments took effect, Georgian Dream filed a complaint with the Communications Commission against three critical TV channels – Pirveli, Formula, and Mtavari Arkhi — for using phrases like 'prisoners of the regime,' 'illegal parliament,' and 'so-called parliament' in their reports, programs, and social media posts. Georgian Dream was also displeased that the country's informal ruler, Bidzina Ivanishvili, was referred to as an 'oligarch.' Broadcasters viewed these complaints as an attempt at paralyzing censorship. The Communications Commission had the authority to fine the broadcasters based on these complaints. Everyone expected it would do so. However, while the Commission ruled that the channels had indeed violated the law, it decided not to impose fines. Amendments to the Georgian Grants Law On April 16, Georgian Dream adopted another legislative amendment, this time to the Law on Grants. 🟥 Under these changes, no foreign grant can be issued in Georgia without government approval. This means that if any foreign fund or organization – for example, the European Union or the United Nations – wants to support a Georgian NGO, it must first obtain official permission from the Georgian Dream government. To issue a grant, the donor must submit a draft agreement to the Anti-Corruption Bureau, which is responsible for implementing these amendments (the bureau's director is appointed by the Prime Minister). The draft must include all details: the grant amount, purpose, and duration. The Anti-Corruption Bureau has the right to review the project for up to three months or longer before deciding whether to approve the grant. 🟥 If a donor dares to issue a grant without government approval, the recipient will be fined an amount twice the size of the grant. There are already first victims of these amendments: on June 11, it became known that the online outlet Tabula would not be able to receive a £50,000 grant from the UK government intended to inform the public about the municipal elections scheduled for autumn 2025. Reportedly, the UK government, following the law, sought permission from Georgian Dream's government to issue the grant, but the Georgian side delayed its response so much that the UK canceled the project altogether. Amendments to the Law on Freedom of Speech and Expression On June 18, Georgian Dream introduced, and on June 26 fast-tracked, amendments to the Law on Freedom of Speech and Expression. The changes mainly affect the section on defamation. The definition of defamation was altered: the component of 'harm caused,' previously required for a statement to be recognized as defamatory, was removed. Moreover, whereas the plaintiff previously had to prove they were defamed, now the defendant must prove that what they said is true. Additionally, if the court deems that publishing a retraction is insufficient, the defendant must also compensate for moral or material damages. 🟥 The most dangerous amendment is the requirement to disclose sources — protections for journalistic sources have been abolished. From now on, refusing to disclose a source or professional secrecy alone can be grounds for a ruling against the defendant. These amendments have already been enforced: six journalists were summoned to Tbilisi City Court for critical social media posts about Georgian Dream politicians, accused of 'insults' for using words like 'slave' and 'scoundrel.' The court found all six guilty and fined them 3,000–4,000 GEL (about $1,100–$1,400). Amendments to the Organic Law on General Courts Also introduced on June 18 and adopted on June 26, amendments to the Organic Law on General Courts fundamentally change the rules for covering court proceedings. 🟥 These changes make it nearly impossible to cover trials, as photo and video recording is now banned not only in courtrooms during hearings but also in hallways and even outside court buildings. Back in 2013, when Georgian Dream first came to power, it repealed a previous government ban on trial coverage. The 2013 amendments allowed public broadcasters to film and broadcast open court sessions without restrictions and required them to share footage with other outlets. If the public broadcaster did not cover a trial, other TV channels could do so with prior permission. The current amendments reintroduce the ban at a time when Georgia has over 50 political prisoners, all opposition leaders are jailed, and public interest in court cases is high. Past trial coverage exposed the absurdity of charges and police falsehoods. The amendment took effect on June 30. From now on, media outlets must request permission from the High Council of Justice to film trials. Despite numerous hearings since, the Council has not granted a single filming permit. Cover photo: ©️Media April News from Georgia
News18
2 days ago
- Business
- News18
GNG Electronics IPO Lists At 49.7% Premium: Should You Buy, Hold Or Sell?
Last Updated: GNG Electronics IPO Listing: Its shares were listed at Rs 355 apiece on the NSE, which is a premium of 49.78% over its issue price of Rs 237. GNG Electronics IPO Listing: GNG Electronics, which refurbishes laptops and desktops, on Wednesday (July 30, 2025) made a strong market debut. Its shares were listed at Rs 355 apiece on the NSE, which is a premium of 49.78% over its issue price of Rs 237. The stock, however, slipped after the listing to trade at Rs 335.11 apiece on the NSE, as of 10:11 am. On the BSE, shares of GNG Electronics listed at Rs 350 apiece, a 47.6% premium over the IPO issue price. The company's market capitalisation stood at Rs 3,834.7 apiece. The IPO was open for subscription between July 23 and July 25. On the final day of bidding on Friday, the issue received a 150.21 times subscription, garnering bids for 2,08,39,60,116 shares as against the 1,38,73,595 shares on offer. The retail and NII participation stood at 47.36x and 226.44x, respectively. The QIB category has received a 266.21x subscription. GNG Electronics IPO Listing: Should You Buy, Hold Or Sell? Brokerages were largely bullish on GNG Electronics Ltd (GEL), citing strong financial growth, market leadership in refurbishing, and promising industry tailwinds. Bajaj Broking gave a 'Subscribe for long term' rating, highlighting that GEL is 'India's largest Microsoft authorised refurbisher, in terms of refurbishing capability, as of Fiscal 2025". It also noted the company's role as an IT asset disposal partner for India's second-largest software firm by market cap. On financials, Bajaj Broking observed that GEL's revenue and net profit rose from Rs 662.79 crore / Rs 32.43 crore in FY23 to Rs 1,420.37 crore / Rs 69.03 crore in FY25. The average RoNW stands at 30.68%. It added, 'If we attribute FY25 annualised earnings then the asking price is at a P/E of 39.17. Based on FY24 earnings, the P/E stands at 51.63." However, it flagged revenue concentration as a risk: 'In FY25, 75.59% of revenue came solely from laptop sales. A decline in laptop demand could materially impact revenue and profitability." Dependency on limited suppliers and price fluctuations in parts were also listed as concerns. SBI Securities echoed the optimism, stating, 'The company has registered strong Revenue/EBITDA/PAT CAGR of 46%/58%/46% (FY23–FY25) to Rs 1,411 crore / Rs 117 crore / Rs 69 crore, respectively." It also cited positive industry trends with India's refurbished PC market projected to grow at a CAGR of 31.3% till FY30. The brokerage noted the absence of listed peers in India and said: 'At the upper price band of Rs 237, GNG is valued at a P/E of 39.1x based on FY25 earnings." view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Civil.ge
4 days ago
- Politics
- Civil.ge
Ex-Defense Ministry Officials, Ex-Minister's Relative Arrested on Embezzlement Charges
The State Security Service of Georgia (SSSG) arrested former Deputy Defense Minister Giorgi Khaindrava, the former head of the Defense Ministry's procurement department, and a relative of ex-Defense Minister Juansher Burchuladze on charges of embezzling a large sum of money from the ministry. The arrests come amid a series of prosecutions and controversies involving former Georgian Dream officials and business associates, as the ruling party intensifies its anti-corruption rhetoric, while critics point to possible internal power struggles and waves of retribution. According to the SSSG, a coordinated group executed a criminal scheme in 2023 that resulted in the embezzlement of GEL 1,333,728 (approximately USD 500,000) from the state budget. 'The group conducted the procurement of medical equipment without actually carrying out real market research,' Emzar Gagnidze, head of the SSSG's Anti-Corruption Agency, stated during the July 27 briefing . The SSSG stated that the group ensured only 'interconnected' companies 'closely linked' to Burchuladze's relative were allowed to participate in the procurement process, which was deliberately structured to inflate the price of medical equipment through sham transactions involving private firms and same-day tax documentation. 'As a result, the Georgian Defense Ministry carried out the procurement of medical equipment at a price significantly above market value,' Gagnidze said. He highlighted an 'important circumstance,' noting that the then-defense minister's close relative had assured the pre-selected companies of a 'guaranteed win,' citing his connections to 'relevant officials.' The detained individuals now face 7 to 11 years in prison on charges of large-scale embezzlement committed by a group in prior agreement and through abuse of official position, under Articles 182 (2-a,d) and 182 (3-b) of the Criminal Code of Georgia. Although former Defense Minister Juansher Burchuladze was not directly named, the alleged crime took place during his tenure, which lasted from 2021 to 2024. In February 2024, shortly after Burchuladze's resignation, Mtavari Arkhi channel reported that the SSSG had begun questioning his deputy, Giorgi Khaindrava, and Vladimer Ghudushari, head of the procurement department, both of whose initials match those mentioned in the SSSG's July 27 briefing. While independent corruption watchdogs have long highlighted suspected corruption in state agencies—often involving preferential procurement schemes—the Georgian Dream government has stepped up its crackdown on alleged corruption cases only in recent months. In June, SSSG also arrested ex-Deputy Economy Minister Romeo Mikautadze on corruption-related charges. The crackdown also involves legislative moves, including a bill pending in the Georgian Dream parliament, which foresees radical measures against those convicted of financial crimes. Also Read:
Civil.ge
7 days ago
- Politics
- Civil.ge
17 Detained During Eviction Operation in Tbilisi's Africa Settlement
17 people, including residents and activists who came to support them, were detained by the end of July 24 in Tbilisi's Africa settlement, where dozens of families had been evicted throughout the day. All were charged with administrative offenses for disobeying police orders. Under amended legislation , the offense is punishable by a fine ranging from GEL 2,000 (about USD 740) to GEL 5,000 (about USD 1,845), or by up to 60 days of imprisonment. Tensions flared on Tvalchrelidze Street, where the National Enforcement Bureau carried out evictions from a building it described as unsafe, privately owned, and illegally occupied. The eviction, which took place amid a large police deployment, reportedly affected more than 100 families according to unofficial estimates, and continued until midnight. Heavy machinery was later deployed to demolish the buildings. Dramatic images emerged from the scene, showing confrontation, arguments, and families, including children, sitting with their furniture and belongings and watching the eviction process from outside in desperation. Officials claimed only 39 families lived in the building permanently, while others started renovating to claim compensation. Authorities and pro-government media outlets said residents had been offered assistance. Among those evicted were reportedly dozens of internally displaced persons (IDPs). Residents, however, said more families were affected, and many had nowhere else to go, accusing officials and ruling Georgian Dream mouthpieces of spreading false information, including about the assistance they were offered. One resident accused pro-GD broadcasters Imedi and Rustavi 2 of offering money to others in exchange for recording a prewritten statement claiming they had been treated fairly. The Social Justice Center, a local human rights watchdog, criticized what it described as the state's 'anti-social policy,' saying that 'while the state must protect public safety, human life and health, and the interests of private owners, it should not violate the dignity and other rights of families through harsh eviction practices or by leaving them without shelter.' The group stressed that 'a fair balance between private and public interests must be ensured,' saying the authorities failed to uphold this standard by favoring the building owner and 'failing to guarantee the rights and interests of hundreds of socially protected persons on the ground.' The organization highlighted human rights violations during the eviction, calling the lack of alternative housing for displaced families the 'most acute problem.' It also raised concerns about the eviction's conduct, citing forced removals and police violence. Also Read:
