Storage and transportation company Sunoco Logistics Partners has announced a record quarterly net income for Q2 2008 of $51.3 million (34.8 million), compared with $25.3 million for Q2 2007.
The increase is equivalent to $1.21 per limited partner unit on a diluted basis from $0.76 per limited partner unit on a diluted basis.
Operating income for the Q2 increased by $24.6 million, or 71%. The improvement was driven by higher margins and fees across all segments, stronger asset operation in the Western Pipeline system and additional tankage placed into service at the Nederland terminal during 2007 and 2008.
These improvements to operating income were partially offset by lower volumes in the Eastern Pipeline and Terminal systems. Decreased interest expense contributed further to the $26 million increase in net income.
For the six months ended June 30, 2008, net income increased to $88.8 million compared to $47.6 million for the first six months of 2007. Operating income for the first half of 2008 increased $38.9 million, or 59%, when compared to the prior year period.
'Since last year we have completed construction of four additional tanks at our Nederland terminal, with six additional tanks at various stages of completion,' Deborah Fretz, president and CEO, says. 'Our announced crude oil project for Motiva is expected to come within our cost projections and the tankage will be completed early.'