Huntway Partners Cuts Payout Despite Earnings Rebound

Huntway Partners L.P., a Valencia producer of liquid asphalt and other oil products, cut its quarterly distribution to unit-holders despite reporting a second-quarter profit of $3.38 million compared with a year-earlier loss of $475,000.

The earnings turnabout in the quarter, which ended June 30, came on a 24% increase in Huntway’s revenue, to $29.9 million from $24.1 million. For the first half of 1990, Huntway’s earnings jumped to $767,000 from $190,000 while its six-month revenue rose 20%--to $50.3 million from $41.8 million.

Huntway, however, warned of problems ahead and said its second-quarter distribution would be cut to 10 cents per unit from the 34.5 cents paid earlier this year. Huntway is a limited partnership whose ownership units, much like shares of stock, are publicly traded. The distributions are similar to dividends.

The new distribution will be paid Aug. 29 to unit-holders of record Aug. 14.

Huntway said liquid asphalt demand in Southern California “declined significantly” from a year earlier, as have asphalt prices, which cut profit margins. The Iraq-Kuwait crisis also has sent the price of crude oil--Huntway’s raw material--up sharply. Also, Huntway said Friday it might not be able to pass the higher costs to its customers any time soon.