Units of midstream master limited partnership Genesis Energy (NYSE: GEL) fell roughly 11% at the open on Aug. 5. They quickly regained some ground, sitting at a roughly 4% decline at 10 a.m. EDT, but by 10:30 a.m. they were heading back toward a loss of 10% again. The big news was the company's earnings release. Investors were not pleased.
Commenting on the quarter, CEO Grant Sims' first statement in the partnership's earnings release was: "As we said in our first quarter call, we believed Genesis, and most other energy and industrial companies, would be facing generational economic headwinds from the widespread demand destruction resulting from shutting down large portions of the world's economies to slow the spread of Covid-19. This turned out in fact to be the case, especially for us in our Sodium Minerals and Sulfur Services segment." That's an honest appraisal, which is nice to see, but still not what any investor really wants to hear.
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