US energy asset partnership Magellan Midstream reported petroleum products terminals margin at 30.8 million, an increase of $6.8 million (5.2 million).
This period benefited from higher revenues at the partnership's marine and inland terminals primarily due to expansion projects, including additional marine storage and ethanol blending infrastructure, and higher rates on existing marine storage. Operating expenses increased primarily due to timing of maintenance projects and higher personnel costs in the 2010 period.
Overall Magellan saw operating profit of $86.3 million for Q1 2010, an increase of $30.2 million, or 54%, compared to $56.1 million for Q1 2009.
Higher financial results from each of our business segments resulted from increased rates charged for our core transportation and storage services, recently-completed expansion projects and timing of mark-to-market adjustments associated with our commodity-related activities, says Don Wellendorf, CEO of Magellan Midstream Partners. We project Magellan will generate record distributable cash flow during 2010 with a continuation of strong base business performance and contributions from a number of additional expansion projects scheduled to come online later this year.