Gregory Hanson
Chief Financial Officer at Global Partners
Product margin from distillates and other oils increased 16,800,000 to $36,500,000 primarily due to more favorable market conditions in distillates and winter weather that was on average 9% colder than the prior year period. Commercial segment product margin increased $100,000 to $7,100,000 Looking at expenses, operating expenses increased $6,600,000 to $126,700,000 in the first quarter of twenty five, primarily related to our terminal operations and the addition of the Gulf and ExxonMobil terminals in 2024. SG and A expense increased $3,900,000 in Q1 twenty twenty five to 73,700,000.0 reflecting in part increases in long term incentive comp, wages and benefits and various other SG and A expenses and a decrease in acquisition costs. Interest expense was $36,000,000 in the first quarter of twenty twenty five, up $6,300,000 from last year, primarily due to higher average balances on our credit facilities related to our terminal acquisitions in 2024. CapEx in the first quarter was $17,900,000 consisting of $9,600,000 of maintenance and $8,300,000 of expansion CapEx, primarily related to investments in our gasoline stations and terminals.