Buckeye Posts 40% Q2 Net Income Hike; Progress at Perth Amboy Terminal
08.05.2013 - NEWS

August 5, 2013 [OPIS] - Buckeye Partners, L.P. reported on Friday a 40% rise in net income for the second quarter, thanks to growth capital investment and strong business
conditions.


Buckeye also said that it has recently signed a long-term contract for approximately 1.0 million barrels of refined petroleum product storage with a gasoline blender for its Perth Amboy, N.J., terminal.

The partnership’s net income attributable to Buckeye’s unit-holders for the second quarter of 2013 was $76.4 million, or $0.72 per diluted unit, compared to net income attributable to Buckeye’s unit-holders for the second quarter of 2012 of $54.4 million, or $0.55 per diluted unit.

“We continued to benefit from increased throughput volumes on our domestic pipeline and terminal systems this quarter.

In addition, our capital investments in our International Operations segment as well as improved rack margins and continued success in executing our risk management strategy in our Energy Services segment were solid contributors to our results,” said Clark Smith, president and chief executive officer at Buckeye.

“We also capitalized on significant business development opportunities during the quarter at our Chicago Complex, where we signed long-term contracts to support a large crude oil storage expansion and a crude oil rail project,” said Smith, adding that these projects are expected to contribute to the partnership’s growth in 2014.

Buckeye’s Adjusted EBITDA for the second quarter of 2013 was $148.5 million compared with Adjusted EBITDA of $119.9 million for the second quarter of 2012.

Operating income for the second quarter of 2013 was $105.7 million, compared to $82.1 million for the second quarter of 2012.

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