Macquarie Infrastructure Corporation (MIC) Accused of Hiding Its Dependence on Heavy Residual Oils From Investors

According to the complaint, Macquarie Infrastructure Corporation (MIC) repeatedly assured investors that its IMTT business, the company's most important segment, experienced stable performance and high utilization rates. Macquarie further noted that any declines in IMTT's storage utilization were temporary and due to routine maintenance, while assuring utilization would remain high into 2018.  However, Macquarie never disclosed to investors that it depended on heavy residual oils—which had been in decline due to environmental concerns and the development of alternative fuel sources—and downplayed its exposure to fluctuations in the use of petroleum products.  On February 21, 2018, Macquarie surprised the market when it announced disappointing fourth quarter earnings of $0.43 per share, well short of analysts' estimate of $0.51 per share, and that the company would be slashing its dividend by 31%.  Macquarie cited the loss of "half a dozen" contracts at its Louisiana storage facility due to a decline in heavy residual oils.  On this news, Macquarie's stock fell over 41% to close at $37.41 per share on February 22, 2018.

Macquarie Infrastructure Corporation (MIC) Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies send us a message via the Shareholder Information form below.