May 9, 2016 [OPIS] - Buckeye Partners said on Friday that its first-quarter adjusted EBITDA improved by 14.8% from a year ago, thanks to stronger demand for oil storage.
The stronger financial results were partially offset by weaker terminal and pipeline throughputs.
Adjusted EBITDA from continuing operations for the first quarter of 2016 was $244.6 million compared to $212.9 million for the first quarter of 2015.
Income from continuing operations for the first quarter of 2016 was $135 million compared to income from continuing operations for the first quarter of 2015 of $112 million.
“Our global marine terminals segment’s performance was substantially improved as compared to last year. Its results were driven primarily by cash flows from the growth capital investments at Buckeye Texas Partners coupled with strong demand for storage services across its legacy assets,” said Clark Smith, Buckeye’s CEO.
“Our domestic pipelines and terminals business was essentially in line with last year’s results despite a decline in pipeline and terminal throughput volumes as a result of milder weather, decreased demand for off-road diesel and market supply shifts,” he added.
Operating income for domestic pipelines and terminals business was at $102.039 million versus $107.552 million a year ago.
Operating income for global marine terminals was $70.407 million, up from $37.395 million a year ago. Merchant services posted an operating income of $1.166 million compared to $1.196 million a year ago.
Buckeye remains focused on its expansion projects, including the modernization of its New York Harbor complex and the construction of its Michigan/Ohio Pipeline Expansion Project, which is on schedule to be operational late this year, Smith said.
The Midwest pipeline project will offer expanded transportation service of refined petroleum products from origin points in the Midwest to destinations in Ohio and western Pennsylvania and is supported by long-term shipper commitments, he added.
Distributable cash flow from continuing operations for the first quarter of 2016 was $178.9 million compared to $155.7 million for the first quarter of 2015. Buckeye also reported distribution coverage of 1.14 times for the first quarter of 2016.
