Blueknight Energy Partners’ crude oil terminalling and storage segment has delivered quarter over quarter increase in its operating margin thanks to a strong crude market.
In its second quarter financials, the company reports a net loss of $18.9 million on total revenues for the three month period and a net loss of $18.2 million on total revenues for the first six months of 2016. This was due to the cancellation of the Knight Warrior East Texas Eaglebine/Woodbine crude oil pipeline project.
Blueknight’s EBITDA was $16.2 million for the three months ended June 30.
CEO Mark Hurley says that its diversified asset portfolio continues to perform well in the current environment as evidenced by quarter over quarter increase in operating margin in its crude oil terminalling and storage services.
He says: ‘Our crude oil terminalling and storage services segment continues to benefit from a strong crude storage market and our crude oil trucking and producer field services segment benefited from a sale of crude oil and increase distances in average hauls.
‘These increases were offset by quarter over quarter decreases in our asphalt terminalling services and crude oil pipeline services segments. The decreases in our asphalt terminalling services segment was the result of a one-time contact renegotiation fee we earned in the second quarter of 2015, however, despite the quarter over quarter decrease, the asphalt terminalling services segment continues to perform well overall and we expect to end the year in very good shape.’