Increasing demand for storage services helped Buckeye Partners generate a ‘solid quarterly financial performance’ despite a volatile commodity environment.
The company experienced a record third quarter 2015 adjusted EBITDA of $204.2 million compared to $200.6 million for the same quarter in 2015. However, its income from continuing operations was $99.9 million compared to $107 million for the third quarter 2014.
Clark Smith, chairman, president and CEO says that both utilisation and rates increased in the third quarter across its domestic and Caribbean assets, which contributed to significant incremental cash flows.
‘Buckeye’s diversified portfolio of assets generate solid quarterly financial performance despite the volatile commodity price environment,’ says Smith.
‘The continued ramp-up of operations at Buckeye Texas Partners also contributed to our improved results over the prior year quarter.
‘We are pleased to report that our 1.1 million barrels of refrigerated LPG storage capacity at our BTP facility in South Texas is now in-service. In addition, we are nearing completion of the commissioning phase for our 500,000 barrel per day splitter facility.
‘These assets provide Trafigura, our partner and customer, with world-class marine terminaling, storage and processing capabilities on the Gulf Coast. We expect these assets and other growth capital investments across our platform to produce significant financial returns for our unitholders.’