Magellan Midstream Partners has recorded a 21% increase on its net income for the second quarter of 2015 of $177.4 million (€161 million).
Micheal Mears, CEO says that the second quarter results were substantially higher than the previous year thanks in part to several recently-completed expansion projects.
The company’s crude oil operating margin was $106.9 million (€96 million), an increase of $33.4 million. Transportation and terminals revenues increased by $16.2 million primarily due to contributions from the 40-mile Houston crude oil pipeline that Magellan acquired in November 2014 as well as new leased storage contracts and the one-time benefit from a customer who bought out its remaining storage agreement in 2015.
Operating expenses increased $4.1 million (€3.6 million) between periods due to higher power costs associated with increased pipeline volumes and less favourable produce overages as a result of lower commodity prices in 2015.
The company’s marine storage operating margin was $30.2 million (€27.5 million), an increase of $2.8 million. The increase in revenue was primarily due to improved utilisation and higher average storage rates at the partnership’s marine terminals.