World Point Terminals Inc. - First quarter 2008 report to our shareholders

MONTREAL, May 16, 2008 (Canada NewsWire via COMTEX News Network) ----(Amounts in thousands of U.S. dollars, except share and per share data,

or as indicated)

TSX:WPO: World Point Terminals Inc. (the "Company") is pleased to announce its results for the first quarter of 2008. Virtually 100% of the Company's tankage remained under contract, although two tanks were out of service throughout much of the quarter and an additional tank was out of service for approximately one month.

Center Point completed one expansion project at its Galveston, Texas, terminal increasing its capacity by 27 percent and has begun an additional expansion which will increase capacity by an additional 22 percent.

South Riding Point reopened Berth No. 2 at its offshore jetty for the first time since the hurricane damage of September 2004. Construction is progressing well on two new tanks totaling 1.5 million barrels of additional capacity.

RESULTS OF OPERATIONS

Revenues from continuing operations for the first three months of 2008 were $18,666 compared to $17,898 in 2007 - a 4 percent increase. This increase reflects the continued growth in storage capacity and some rate increases within Center Point.

Center Point's revenues grew by $1,038 in the first three months of 2008 or 8 percent as compared to the first three months of 2007. This increase was due to fewer tanks being out of service in the first quarter of 2008 compared to the first quarter of 2007 and customary inflationary rate increases.

South Riding Point's revenues decreased by $471 or 10 percent in the first three months of 2008 compared to the first three months of 2007. $247 of this decrease was attributable to crude oil sales which took place in the first quarter of 2007 that did not repeat in the first quarter of 2008. The remaining decrease was a result of a decline in shipping revenues in the first quarter of 2008. Marine activities are dictated entirely by the operations of our customers and are subject to significant variations. It is difficult to predict if and when 2007 activity levels will return to the South Riding Point operations.

Freepoint's revenues increased by $201 in the first three months of 2008 or 39 percent compared to revenues in the first three months of 2007. This increase is a result of higher container ship volume, rate increases and the strategic bare-boat chartering of one of its vessels.

Operating expenses for the first three months of 2008 totaled $8,125 as compared to $7,758 for the first three months of 2007, a 5 percent increase. Repairs and maintenance costs increased by $211 between the quarters primarily due to major repairs at the Baltimore and South Riding Point facilities.

Net income for the first three months of 2008 was $5,353 versus $3,908 for the first three months of 2007 and basic earnings per share were US$0.221 versus US$0.166. Diluted earnings per share increased to US$0.221 in the first three months of 2008 from US$0.163 in the first three months of 2007. Income from continuing operations in the first three months of 2008 was $5,949 versus $4,300 in the first three months of 2007 and basic earnings per share from continuing operations were US$0.246 in the first three months of 2008 versus US$0.183 in the first three months of 2007. It should be noted that the results of operations for the first three months of 2008 reflect a gain on insurance proceed receipts of $1,536. No such gain was reported in the first three months of 2007. This gain is not attributed to the underlying operations of the business, but rather the accounting for our ongoing insurance claims stemming from hurricane damage South Riding Point incurred in 2004.

Operating income (net income excluding income taxes, general corporate expenses and discontinued operations) increased from $6,807 in the first three months of 2007 to $8,647 in the first three months of 2008.

Additional information by operating segment is included in the footnotes to the interim financial statements filed on Sedar. The Company believes that information by operating segment provides the reader with a better understanding of the important factors affecting its results.

Recent Developments/Outlook

The outlook for the remainder of the 2008 fiscal year is positive as the Company's tankage continues to be under contract. Market conditions have allowed the Company to maintain or increase rates at its facilities; however, as the futures market for most petroleum products has been in backwardation (future prices are lower than current spot market prices) management cannot give any assurance that the existing market rates will continue when contracts come up for renewal. Center Point has begun another expansion project at its Galveston, Texas, terminal increasing its capacity by 22 percent in the second quarter of 2009. Additionally, South Riding Point is nearing completion on its construction of two additional tanks at the Bahamas facility which will add 1.5 million barrels of storage capacity around the end of the second quarter of 2008.

General

World Point Terminals Inc. ("World Point") and its subsidiaries (the "Company") own and operate 14.5 million barrels of liquid bulk storage and terminal facilities located in North America ("Center Point") and the Bahamas ("South Riding Point"). These facilities store, blend, and transship petroleum and other liquid products as an integral part of the wholesale distribution system. Through a joint venture, the Company also operates a fleet of tugboats around Grand Bahama Island in the Bahamas ("Freepoint").

On behalf of the Board:

Bernard A. Roy

President and CEO

May 15, 2008

(514) 847-4519

Cautionary Statement Regarding Forward-Looking Statements

Some of the statements contained in this release may be forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition to exist or occur. Since forward-looking statements, by their very nature, involve inherent risks and uncertainties, actual results in the future could differ materially from those currently anticipated in such statements by reason of factors including, but not limited to, changes in economic and market conditions and changes in world political stability. World Point Terminals will not update or revise any forward-looking statements for new information, future events or otherwise.

This discussion and analysis of operating results and the financial position of the Company should be read in conjunction with the first quarter 2008 report to shareholders and the 2007 audited financial statements of the Company and Management's Discussion and Analysis as filed on Sedar.

 << Summary of Quarterly Results 2nd QTR 3rd QTR
   4th QTR 1st QTR 2007 2007 2007 2008 ------------------------------------------- REVENUE 17,564 18,307 18,463 18,666 NET INCOME
   FROM CONTINUING OPERATIONS 3,656 5,585 4,299 5,949 NET INCOME 3,621 3,721 3,620 5,353 EARNINGS PER SHARE FROM CONTINUING OPERATIONS
   Basic: 0.156 0.237 0.178 0.246 Diluted: 0.152 0.232 0.178 0.246 EARNINGS PER SHARE FROM NET INCOME Basic: 0.154 0.158 0.151
   0.221 Diluted: 0.152 0.156 0.147 0.221 CASH DIVIDENDS DECLARED PER COMMON SHARE - - - - 2nd QTR 3rd QTR 4th QTR 1st QTR 2006
   2006 2006 2007 ------------------------------------------- REVENUE 12,700 13,715 15,166 17,898 NET INCOME FROM CONTINUING
   OPERATIONS 2,971 1,612 6,209 4,300 NET INCOME 3,140 142,581 4,325 3,908 EARNINGS PER SHARE FROM CONTINUING OPERATIONS Basic:
   0.128 0.069 0.264 0.183 Diluted: 0.127 0.069 0.262 0.179 EARNINGS PER SHARE FROM NET INCOME Basic: 0.135 6.084 0.201 0.166
   Diluted: 0.134 6.065 0.175 0.163 CASH DIVIDENDS DECLARED PER COMMON SHARE - - 7.030 - -------------------------------------------------------------------------
   >> 

The quarterly results demonstrate that the Company's business is not significantly seasonal and revenues and profits have generally trended up over the most recent years. We have been successful in maintaining our customer base with a mix of long and shorter-term contracts. The fourth quarter of 2006 and the first quarter of 2008 reflect gains from insurance recoveries. Significant changes in results can be highly dependent upon the actions of our customers.

Balance Sheet and Cash Flows

Selected Balance Sheet components are identified below at March 31, 2008 and December 31, 2007 and 2006:

 << March 31, December 31, December 31, 2008 2007 2006 Cash 14,616 11,689 11,828 Total assets 148,146
   138,672 120,118 Long-term liabilities 24,161 24,660 24,719 -------------------------------------------------------------------------
   >> 

First quarter 2008 cash flows from operations were $12,051 compared to $4,707 in the first quarter of 2007. The Company invested $10,165 in property, plant and equipment during the first three months of 2008 compared to $5,387 in the first three months of 2007.

On May 3, 2006, the Company borrowed $15,000 from a financial institution pursuant to a five year term note. The note bears interest at 6.17 percent and is amortized over a seven year period.

In connection with the sale of the Europoint terminal, the Company committed to fund the completion of the "Pit 93" expansion project, which was ongoing at the sale date. The Company has accrued $1,105 for this project at March 31, 2008.

Retained earnings increased by $5,353 as a result of first quarter 2008 operations.

For the first three months ended March 31, 2008, the Company had weighted average basic shares outstanding of 24,187,997 as compared to 23,474,261 for the three months ended March 31, 2007. Shares outstanding at March 31, 2008, totaled 24,224,261 as compared to 24,074,261 at December 31, 2007. This increase was attributable to the exercise of the warrants issued in connection with the acquisition of the Galveston, Texas, storage facility.

Liquidity

During the first quarter of 2008, the Company comfortably met all of its liquidity requirements. The Company's cash flow from operations plus available financing were sufficient to meet its operational and capital expenditure requirements. Large portions of the Company's operating expenses are fixed and, accordingly, the Company's ability to continue to meet its ongoing obligations is dependent upon its ability to retain its existing customers and attract new customers. The Company believes it will be able to retain or attract an adequate number of customers to meet its obligations over the coming year.

The Company maintains relationships with several commercial banks and is confident that it can borrow additional amounts if needed for acquisitions or expansion projects.

The Company's contractual obligations are summarized as follows:

 << Payments Due by Period -------------------------------------------------------------------------
   Less than 1 1 - 3 4 - 5 After 5 Contractual obligations Total year years years years Long term debt 11,673 1,979 4,344 5,350
   - Capital lease obligations - - - - - Operating leases(1) 12,229 874 2,308 2,046 7,001 Purchase obligations 6,389 6,389 -
   - - Asset retirement obligations(2) 5,795 - - - 5,795 Environmental liabilities(3) 407 5 15 10 377 Total contractual obligations
   36,493 9,247 6,667 7,406 13,173 ------------------------------------------------------------------------- (1) Amounts shown
   for Operating Leases represents minimum annual payments over the remaining lease term, excluding extension options. Certain
   leases contain inflation adjustment provisions, which have not been reflected in these amounts. Certain leases also contain
   provisions for additional payments based on the level of activity at the facility. Only minimum required payments have been
   included in the above amounts. (2) Amounts shown for asset retirement obligations represent management's estimate of the probability
   adjusted future cash expenditures for the demolition and removal of certain terminal assets at the end of the applicable lease
   terms. The liability reported on the Company's consolidated balance sheet of $404 represents the discounted value of these
   estimated future cash expenditures. (3) See footnote 19 to the 2007 Annual Report of the Company for a discussion of environmental
   contingencies. >> 

Capital Resources

On September 14, 2005, South Riding Point executed a contract committing to a $7,853 contract for restoration and repairs to its offshore jetty damaged by the September 2004 storms. Approximately $3,574 of this contract will not be reimbursed by insurance as South Riding Point elected to complete additional projects while contractors are mobilized at the facility. The Company expects to be reimbursed by insurance for the remaining costs to the extent they exceed the applicable deductibles. In June 2007, South Riding Point terminated the contractor on the jetty repair contract and hired a new contractor. A portion of the work with the new contractor is subject to a $1,600 maximum. Additional work will be completed on a time and materials basis. Work on this contract continues.

Center Point acquired land in Jacksonville, Florida for development of a new terminal facility. Currently, contracts have not been committed to for the development of this facility. However, the Company anticipates incurring approximately $12 million to build the facility.

The Company is subject to extensive environmental laws and regulations and may be required to make significant capital expenditures to remain in compliance with those laws. The Company anticipates that it will continue to make capital expenditures consistent with prior years to maintain its current facilities and that it will finance those expenditures from operating cash flows.

Off-Balance Sheet Arrangements

The Dutch authorities have completed their investigations related to the embezzlement scheme and allegations of tax irregularities regarding payroll, customs and excise taxes at Europoint. The authorities have stated that the Company was a victim and not a suspect in the embezzlement scheme. The Company terminated three employees suspected of embezzlement and initiated civil proceedings against the accused parties. It is uncertain what amounts, if any, will be recovered as a result of this litigation. The Company reached a settlement with one of the parties and received payments totaling $975.

Dutch customs authorities have made allegations which include the filing of incorrect tax returns for payroll taxes, customs and excise duties, failure to maintain proper records related to the movement of petroleum products in and out of the facility's bonded warehouse and permitting property subject to customs and excise duties to leave the bonded warehouse without payment of the appropriate taxes by Europoint. During 2007, authorities issued additional tax assessments against Europoint and reversed some prior assessments based on successful appeals filed by the Company. Additional appeals are ongoing. The Company continues to incur significant legal costs related to these matters. The relevant amounts have been detailed in Note 19 of the Company's 2007 Annual Report.

The purchaser of the shares of the Europoint terminal has filed a lawsuit against the Company related to the limited representations and warranties contained in the share purchase agreement. Additional details are included in Note 19 of the Company's 2007 Annual Report.

Transactions with Related Parties

The Company enters into transactions with companies affiliated with Mr. Novelly, who is Chairman of the Company, and, in conjunction with his family, is a significant shareholder. The specific entities and types of transactions are as follows:

 << Apex Oil Company, Inc. Customer at seven terminals Petroleum Fuel & Terminal Company Manages
   U.S. terminals Enjet, Inc. Customer at one terminal Provides fuel oil at PISTI St. Albans Global Management, LLLP Management
   services Markets Bahamas terminal >> 

Center Oil Company, a company owned by Mr. Parker, a director and shareholder, is a customer at two terminals.

The amounts shown below have been recorded at their exchange value, which is the amount of consideration agreed to by the related parties.

South Riding Point

Affiliated companies provide marketing and management services for South Riding Point. The affiliates have been granted exclusive marketing representation and authority on behalf of South Riding Point to market storage and transshipment services. The affiliates are paid a fee based on actual throughput on transshipment contracts, on quantities of storage contracts and for management services. These fees totaled $109 in the first three months of 2008 and 2007.

Center Point

Affiliated companies operate and market twelve facilities and receive a management fee in addition to reimbursement of all expenses related to these facilities. During the first three months of 2008 and 2007, management and marketing fees charged by the affiliates totaled $187, and operating costs billed by the affiliates amounted to $1,928 and $1,767 for the three months ended March 31, 2008 and 2007, respectively.

Center Point earned storage revenue from affiliated companies of $4,802 and $4,961 during the three months ended March 31, 2008 and 2007, respectively.

Other

In addition to the above noted related party transactions, the Company paid $289 and $205 for management services from companies affiliated with it during the three months ended March 31, 2008 and 2007, respectively.

Accounts receivable included $2,329 and $2,097 due from affiliated companies at March 31, 2008 and 2007, respectively. Accounts payable and accrued liabilities included $165 and $1,803 due to affiliated companies at March 31, 2008 and 2007, respectively.

Critical Accounting Estimates

Center Point estimates its potential liability to remove assets from leased premises at the end of the lease term. In calculating the potential liability, the Company estimates the cost at the end of the lease term, assesses the probability that the lessor will require the assets to be removed, and discounts the probability adjusted amount to the balance sheet date using a credit adjusted risk free rate.

The Company estimates the useful lives of its property, plant and equipment for purposes of calculating depreciation allowances, based on factors such as the Company's experience with similar assets, warranties provided by contractors and available data from independent sources. The Company evaluates the carrying value of long-lived assets, including property, plant and equipment, when events or changes in circumstances indicate that the carrying value may not be recoverable. Such events and circumstances include, but are not limited to, significant decreases in the market value of the asset, adverse changes in the extent or manner in which the asset is being used, significant changes in business climate, or current or projected cash flow losses associated with the use of the asset. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from such assets are separately identifiable and are less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset.

The Company has provided for all amounts assessed or identified in proposed assessments by the tax authorities in the Netherlands. Additional amounts may be assessed in the future and the likelihood of successfully appealing the assessments is uncertain at this point in time.

Changes in Accounting Policies Including Initial Adoptions

Effective January 1, 2007, the Company adopted the new standard issued by the CICA to account for Financial Instruments. The new standard prescribes when a financial instrument is to be recognized on the balance sheet and at what amount and specifies how financial instrument gains and losses are to be presented. Certain of the Company's contracts contain provisions that will affect revenues based on various indices of inflation. Certain contracts also provide for the adjustment of revenues from heating charges based on the price of a commodity (natural gas) that affects the Company's cost of providing heat to our customers. The Company applied the new standard to its first quarter beginning January 1, 2007. The application of this standard did not have a material effect on its financial statements.

Effective January 1, 2008, the Company adopted the new standard issued by the CICA to account for Inventories. The standard requires certain costs, previously recorded as period costs, to be allocated to inventory and included in cost of sales when inventory is sold. Prior to the adoption of this standard, these costs were treated as operating expenses. Prior periods will not be restated for this adoption. The adoption of this standard did not have a material effect on the Company's results of operations or cash flows.

In addition, effective January 1, 2008 the Company adopted CICA Section 3862 "Financial Instruments - Disclosures" and Section 3863 "Financial Instruments - Presentation" which provide enhanced disclosure and presentation requirements and replace Section 3861 "Financial Instruments - Disclosure and Presentation". The Company also adopted CICA Section 1535 "Capital Disclosures", which provides guidance on disclosure of the entity's objectives, policies and processes for managing capital. The adoption of these standards did not have a material impact on the consolidated financial statements of the Company.

The Company has begun the process of evaluating its existing system of internal controls in connection with the implementation of the reporting requirements of Proposed Multilateral Instrument 52-111 and the certification requirements of Proposed Amended and Restated Multilateral Instrument 52-109. The Company has engaged an external accounting firm to assist in this process. The Company views this as a beneficial process and will work to implement any necessary changes in policies and procedures.

Financial Instruments and Other Instruments

The Company records cash, accounts receivable, accounts payable and accrued liabilities, and dividends payable at cost which approximate their fair values due to the relatively short maturity period of these instruments.

The Company is exposed to credit risk in its dealings with customers; however, management considers this risk to be low as most customers prepay their obligations or the Company has custody of customer's assets at its facilities.

The Company is exposed to currency risk as certain of its purchases are denominated in foreign currency. The Company also holds cash and cash equivalents in foreign currency. Changes in applicable exchange rates may result in exchange gains or losses. The Company views this risk as acceptable and has not used derivative instruments to manage it. This risk was substantially reduced after the sale of the Europoint terminal.

CICA Section 3855 requires that financial assets and financial liabilities, including derivative financial instruments, be recognized on the balance sheet when the Company becomes a party to the contractual provisions of the financial instrument. On initial recognition, all financial instruments subject to Section 3855, including embedded derivative financial instruments that are not closely related to the host contract, must be measured at fair value. The Company has selected January 1, 2004 as the date for identification of embedded derivatives. Derivatives qualifying as hedges are accounted for using special hedge accounting rules (see section Hedges below).

After initial recognition, the measurement of financial instruments depends on their classification: held-for-trading ("HFT"); AFS; loans and receivables ("L&R"); or other than HFT liabilities.

Held for trading - financial assets and financial liabilities required to be classified or designated as HFT are measured at fair value, with gains, losses and transaction costs recorded in income for the period in which they arise. Section 3855 allows an entity to designate any financial instrument as HFT on initial recognition or adoption of the accounting standard if reliable fair values are available, even if that instrument would not otherwise satisfy the definition of HFT. The Company has designated its cash and cash equivalent financial assets as HFT.

Available for sale - financial assets classified as AFS are measured at fair value, except for investments in equity instruments classified as AFS that do not have a quoted market price in an active market, which are measured at cost. Unrealized gains and losses, including the effect of changes in foreign exchange rates, are recognized directly in OCI, except for impairment losses, which are recognized in income. Upon derecognition of the financial asset, the cumulative gains or losses, previously recognized in accumulated other comprehensive income ("AOCI") are reclassified to income. Transaction costs are added to the carrying amount of the financial instrument.

Loans and receivables - financial assets classified as L&R are measured at amortized cost using the effective interest method. Interest income, calculated using the effective interest method, is recorded as interest income in the period. Transaction costs are added to the carrying amount of the financial asset. The Company has designated its accounts receivable financial assets as L&R.

Other than HFT liabilities - financial liabilities classified as other than HFT are measured at amortized cost using the effective interest method. Interest expense, calculated using the effective interest method, is recorded as interest expense in the period. Transaction costs are netted with the carrying amount of the financial liability. The Company has designated its accounts payable and accrued liabilities and its long term debt, including current maturities, financial liabilities as HFT.

Future Accounting Changes

On February 13, 2008, the Canadian Accounting Standards Board ("AcSB") confirmed the mandatory International Financial Reporting Standards ("IFRS") changeover date for Canadian profit-oriented publicly accountable entities ("PAEs"). This means that PAEs will be required to prepare IFRS financial statements for interim and annual financial statements for fiscal years beginning on or after January 1, 2011.

Canadian GAAP will be converged with IFRS through a combination of two methods: as current joint-convergence projects of the United States' Financial Accounting Standards Board and the International Accounting Standards Board are agreed upon, they will be adopted by the AcSB and may be introduced in Canada before the complete changeover to IFRS; and standards not subject to a joint-convergence project will be exposed in an omnibus manner for introduction at the time of the complete changeover to IFRS.

As the International Accounting Standards Board currently, and expectedly, has projects underway that should result in new pronouncements that continue to evolve IFRS, and that this Canadian convergence initiative is very much in its infancy as of the date of these financial statements, it is premature to currently assess the impact of the Canadian initiative, if any on the Company.

Subsequent Event

On April 8th, 2008, Center Point borrowed $25,000 from a commercial bank. The $25,000 loan carries a floating interest rate equal to the one month London Interbank Offered Rate plus seventy-seven hundredths of one percent (0.77%). The loan is amortized over seven years and matures in five years. This borrowing is secured by Center Point's storage contracts and current assets and contains various restrictive financial and nonfinancial covenants. Fixed monthly principal payments of $298 are due under this borrowing until April 8, 2013, at which point the remaining balance of $7,441 will become due.

In order to manage its interest rate risk associated with this borrowing, Center Point entered into a pay-fixed receive-float interest rate swap agreement. The Company believes that the effect of this swap agreement will be to effectively lock the interest rate on this borrowing at 4.17%.

Additional Information

Additional information relating to the Company, including a copy of the Company's Annual Information Form, is available on SEDAR at www.sedar.com. The company maintains an informational website at www.wpo.ca.

Cautionary Statement Regarding MD&A

Some of the statements contained in this release may be forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition to exist or occur. Since forward-looking statements, by their very nature, involve inherent risks and uncertainties, actual results in the future could differ materially from those currently anticipated in such statements by reason of factors including, but not limited to, changes in economic and market conditions and changes in world political stability. World Point Terminals will not update or revise forward-looking statements for new information, future events, or otherwise.

This discussion and analysis of operating results and the financial position of the Company should be read in conjunction with the unaudited financial statements contained in this release and the audited financial statements in the Company's 2007 Annual Report.

WORLD POINT TERMINALS INC.

Notes to the Consolidated Interim Financial Statements (unaudited)

For the three month period ended March 31, 2008

(in thousands of U.S. dollars, except share and per share data)

-------------------------------------------------------------------------

Note 1 - Basis of Presentation

The accompanying unaudited interim consolidated financial statements of

World Point Terminals Inc. (the "Company") have been prepared on

substantially the same basis as the Company's most recent annual

consolidated financial statements and should be read in conjunction with

the Company's Annual Report for the year ended December 31, 2007.

In the opinion of management, these unaudited interim consolidated

financial statements contain all adjustments necessary to present fairly

the Company's financial position as at March 31, 2008 and December 31,

2007, as well as its results of operations and its cash flows for the

three months ended March 31, 2008 and 2007. These interim consolidated

financial statements have not been audited or reviewed by the Company's

independent auditor.

Note 2 - Share Data

The authorized share capital of the Company consists of an unlimited

number of common shares carrying the right of one vote per share. As of

March 31, 2008, the Company had issued and outstanding 24,224,261 common

shares. As at March 31, 2008, the Company had no warrants or stock

options outstanding.

Note 3 - Capital

Due in large part to the historical profitability of the operations of

the business and certain bank borrowings, the Company has accumulated a

significant amount of excess working capital. Presently, the Company

intends to retain these funds for additional investment into its existing

facilities and to fund potential future acquisitions. While the Company

finds itself in an excess working capital position, it will seek to earn

an acceptable rate of return on these assets. Relatively few externally

imposed capital requirements give the Company substantial freedom in

these endeavors.

The Company's objectives when managing its capital are to i) safeguard

the Company's ability to continue as a going concern, so that it can

continue to provide returns for shareholders and benefits for other

stakeholders, and ii) to provide an adequate return to shareholders by

pricing products and services commensurately with the level of risk.

The Company manages its capital structure and makes adjustments to it in

the light of changes in economic conditions and the risk characteristics

of the underlying assets. In order to maintain or adjust the capital

structure, the Company may adjust the amount of dividends paid to

shareholders, return capital to shareholders, issue new shares, or sell

assets to reduce debt.

The Company does not monitor its capital requirements based on any

specific ratios but rather its understanding of the then current business

environment and future plans of the business.

As deemed advantageous, the Company will borrow funds when it believes it

will be able to earn a sufficient return on the borrowed funds to cover

the interest expense and compensate it for the additional risk incurred

by taking on the debt. Generally the Company manages its exposure to

interest rate fluctuations by entering into fixed rate borrowings or by

using interest rate swaps.

Note 4 - Equity

The change in the Company's equity accounts for the first three months of

2008 was driven by its results of operations for the period along with a

holder of outstanding stock warrants exercising these warrants.

Retained earnings changed from $55,243 at December 31, 2007 to $60,596 at

March 31, 2008, a change of $5,353, as a result of the Company's net

income for the period.

The Company's Warrants and Share Capital accounts changed from $332 and

$40,022, respectively, at December 31, 2007 to $0 and $41,282,

respectively, at March 31, 2008 due to a holder of stock warrants

exercising these warrants and acquiring 150,000 common shares of the

Company. Upon the exercise of these warrants, the Company had no further

warrants or stock options outstanding.

Note 5 - Property, Plant and Equipment

Property, plant and equipment consisted of the following at March 31,

2008:

 << -----------------------------------------
   Accumulated Net Book Cost Depreciation Value ------------- ------------- ------------- Tanks and apenditures $ 90,174 $ 33,178
   $ 56,996 Land 17,029 - 17,029 Assets under construction 34,076 - 34,076 Tug boats and marine vessels 6,018 2,033 3,985 Docks
   and jetties 3,386 1,442 1,944 Machinery and equipment 4,281 2,409 1,872 Buildings 945 218 727 Other 3,417 1,256 2,161 -------------------------------------------------------------------------
   $ 159,326 $ 40,536 $ 118,790 ------------------------------------------------------------------------- -------------------------------------------------------------------------
   Property, plant and equipment consisted of the following at December 31, 2007: ----------------------------------------- Accumulated
   Net Book Cost Depreciation Value ------------- ------------- ------------- Tanks and apenditures $ 90,220 $ 31,058 $ 59,162
   Land 17,029 - 17,029 Assets under construction 23,847 - 23,847 Tug boats and marine vessels 6,056 1,746 4,310 Docks and jetties
   3,386 1,328 2,058 Machinery and equipment 3,938 2,330 1,608 Buildings 893 205 688 Other 3,877 1,351 2,526 -------------------------------------------------------------------------
   $ 149,246 $ 38,018 $ 111,228 ------------------------------------------------------------------------- -------------------------------------------------------------------------
   Note 6 - Segmented Information 3 Months Ended -------------- March 31, 2008 ------------------------------------------------------
   Bahamas Netherlands --------------------- (Discon- Tugs Terminal tinued) U.S. Total ---------- ---------- ---------- ----------
   ---------- Revenue $ 720 $ 4,269 $ - $ 13,677 $ 18,666 -------------------------------------------------------------------------
   Operating profit before depreciation and amortization 28 3,260 - 8,122 11,410 Depreciation and amortization (196) (364) -
   (2,203) (2,763) ------------------------------------------------------------------------- Operating profit (168) 2,896 - 5,919
   8,647 General corporate expenses (404) Discontinued segment - - (596) - (596) Income tax expense - - - (2,294) (2,294) -------------------------------------------------------------------------
   Net income $ 5,353 ------------------------------------------------------------------------- Capital expenditures $ - $ 4,591
   $ - $ 5,574 $ 10,165 ------------------------------------------------------------------------- Interest expense $ - $ - $
   - $ 194 $ 194 ------------------------------------------------------------------------- Identifiable assets $ 6,371 $ 40,212
   $ 4,423 $ 97,140 $ 148,146 ------------------------------------------------------------------------- -------------------------------------------------------------------------
   March 31, 2007 ------------------------------------------------------ Bahamas Netherlands --------------------- (Discon- Tugs
   Terminal tinued) U.S. Total ---------- ---------- ---------- ---------- ---------- Revenue $ 519 $ 4,740 $ - $ 12,639 $ 17,898
   ------------------------------------------------------------------------- Operating profit before depreciation and amortization
   85 2,122 - 7,139 9,346 Depreciation and amortization (158) (362) - (2,019) (2,539) -------------------------------------------------------------------------
   Operating profit (73) 1,760 - 5,120 6,807 General corporate expenses (401) Discontinued segment - - (392) - (392) Income tax
   expense - - - (2,106) (2,106) ------------------------------------------------------------------------- Net income $ 3,908
   ------------------------------------------------------------------------- Capital expenditures $ 60 $ 3,544 $ - $ 1,783 $
   5,387 ------------------------------------------------------------------------- Interest expense $ - $ - $ - $ 222 $ 222 -------------------------------------------------------------------------
   Identifiable assets $ 1,679 $ 25,427 $ 5,927 $ 85,821 $ 118,854 -------------------------------------------------------------------------
   ------------------------------------------------------------------------- >> 

SOURCE: World Point Terminals Inc.

Bernard A. Roy, President and CEO, (514) 847-4519 

Copyright (C) 2008 CNW Group. All rights reserved.