San Antonio, US-based terminal operator NuStar Energy has announced better than expected first quarter net income, propped up by stronger actions in the storage sector.
Net income applicable to limited partners is $31.6 million (23.8 million), or $0.58 per unit, for the first quarter of 2009, which is better than the $0.25 to $0.50 per unit guidance previously communicated and higher than analysts estimates.
Our storage segment should perform much better in 2009 compared to 2008, as we expect to benefit from a full years contribution from the projects completed under the companys $400 million construction programme, Curt Anastasio, CEO and President of NuStar Energy and NuStar GP Holdings says.
Anastasio adds that certain contracts are up for renewal, and strong demand for storage at certain key terminal facilities should allow the operator to benefit from higher rates. The company also has new pipeline business.
Included in NuStar Energys earnings results for Q1 2009 is a $4.7 million gain related to property insurance proceeds received due to damage incurred from Hurricane Ike that occurred at the Texas City, Texas terminal in Q3 2008. Excluding the effect of the Hurricane and other items, Q1 2009 adjusted earnings would have been $25.8 million.