Magellan Midstream has made a second quarter 2011 operating profit of $128.7 million (€91 million), which it says is a record for the company.
The company’s net income of $103 million was also bigger than the $102.5 it generated in the same period in 2010.
The company previously reported operating profits of $124.7 million for the first quarter of this year.
Magellan’s storage terminals made $0.4 million more profit than the second quarter of 2010, hitting $35.4 million.
The company says its profit was positively influenced by the oil storage facility it acquired in Cushing, Oklahoma in September 2010, where it has put new storage tanks into use. It says it also increased storage fees at other terminals, especially those relating to ethanol, which compensated for lower storage volumes.
However, operating expenses rose during the second quarter, because of air emission fees increasing and losses on assets that are no longer on use and are in the process of being demolished to make room for new tank construction.
Michael Mears, Magellan’s CEO, says the future looks bright for the company: ‘Contributions from recently-completed acquisitions and expansion projects have exceeded our initial expectations, and along with strong commodity performance, are keeping us on track for a record year.’