August 7, 2014 [OPIS] - Oiltanking Partners, L.P. said on Wednesday that it has reported a record second quarter 2014 net income of $42.3 million, or $0.37 per unit, an increase of 43.3% over second quarter 2013 net income of $29.5 million, or $0.31 per unit.
The sharply higher income was attributed to crude storage tank capacity and liquefied petroleum gas exports flow in Houston.
The Partnership’s revenues increased by approximately $17.0 million, or 32.6%, to $69.1 million during the second quarter of 2014 compared to the same period in 2013, due to higher storage service fee revenues, throughput fee revenues and ancillary service fee revenues.
Storage service fee revenue grew by $6.8 million due to new storage capacity of approximately 3.2 million barrels placed into service in the second half of 2013 and 2 million barrels placed into service since January 2014.
Throughput fee revenues grew by $8.9 million during the second quarter of 2014 due to fees related to pipeline throughput, fees from in-terminal sales between customers, LPG exports at the Partnership’s Houston terminal and customer deficiency charges recognized in the current period.
Adjusted EBITDA increased 34.3% to $48.8 million for the second quarter of 2014, compared to $36.4 million for the second quarter of 2013.
“We continue to benefit from strong growth in customer export initiatives and logistics needs. General activity at our terminals has increased, and we achieved a new throughput record of more than 1.25 million b/d this quarter,” said Ken Owen, CEO of the Partnership’s general partner.
“Our Houston expansion projects are enhancing our storage, distribution and export capabilities, allowing us to capitalize on increased customer demand for energy logistics services,” he said.
Oiltanking has made progress at Appelt II terminal project, successfully placing into service six storage tanks with a total storage capacity of approximately 2.0 million bbl.
Oiltanking is on track to deliver the remainder of the tanks along with the two previously-announced Crossroads pipelines on schedule, said Owen.
When the Appelt I, II and III expansion projects have been completed, the partnership’s total crude storage capacity in Houston is projected to be nearly 29 million bbl.
The Partnership has also received the necessary permits and broken ground on its Beaumont terminal expansion.
In June, Oiltanking said that it had planned to construct new crude storage, pipelines, and dock infrastructure at its terminal in Beaumont, Texas.
The multi-phase crude expansion will have a total capacity of up to 6.2 million bbl of storage at a total cost of approximately $340 million when all currently planned phases have been completed.
Oiltanking expects to deliver initial tanks to customers in the third quarter of 2015, with the balance to be completed through the first half of 2016.
