Magellan Midstream Partners, an owner and operator of petroleum products and storage, has reported net income of $90.1 million (€60.4 million) for Q1 2011, an increase of $25.6 million, or 40%, compared to $64.5 million for first quarter 2010.
Distributable cash flow, a sum that represents the amount of cash generated during the period that is available to pay distributions, increased 38% to $117.7 million for first quarter 2011 compared to $85.2 million during first quarter 2010.
The company’s pipeline operating margin was $126.4 million, an increase of $23.5 million.
Transportation and terminals revenues increased between periods primarily due to higher shipments for petrol and diesel fuel and contributions from recent expansion projects and acquisitions.
Excluding the Texas pipelines acquired in September 2010, which shipped 19.3 million barrels of product during Q1 2011, transportation volumes on the partnership’s pipeline system increased 9% for Q1 2011.
Q1 2011 revenues also improved due to higher fees for leased storage, terminal throughput, ethanol blending and additive injection resulting from the increased demand for petroleum products.
‘Magellan kicked off 2011 in solid form, with each of our business segments generating higher first-quarter financial results than the year-ago period,’ says Mike Mears, CEO. ‘Our partnership benefited from recently-completed acquisitions and growth projects, improved demand for petroleum products and higher petroleum prices so far this year. Magellan remains on track to deliver record annual distributable cash flow for our investors again in 2011.’