August 24, 2012 [Equities] - Oiltanking Partners today reported second quarter 2012 net income of $16.6 million, compared to second quarter 2011 net income of $7.6 million.
The Partnership’s overall operating results for the second quarter of 2012 improved compared to the prior year period primarily due to higher storage and throughput volumes generating increased service fees, and to higher ancillary service fees and lower operating expenses.
Revenues increased approximately $4.2 million, mainly due to additional revenues from new storage capacity placed into service in December 2011 and April 2012 and to an escalation in storage fees, resulting in an increase in storage service fee revenue of $2.3 million, higher throughput fee revenue of $1.5 million, largely attributable to higher liquefied petroleum gas exports during the 2012 period, and an increase in ancillary services fee revenue.
“We are pleased to report record results for the second quarter as the Partnership benefitted from the positive impact of an additional 390,000 barrels of crude storage capacity that was placed into service in April as well as increased throughput during the quarter,” said Carlin Conner, Chairman, President and Chief Executive Officer of the Partnership’s general partner.
“We are continuing to build on our strategic position as the largest and most flexible crude storage distribution terminal serving the Houston and Texas City markets. The Partnership is a key link between the incremental as well as existing crude oil flows coming to the Gulf Coast and the growing demand for crude oil storage by Gulf Coast refineries, oil producers and oil traders.”
“Our current crude storage expansion projects and crude pipeline project are on budget and on schedule with an additional 1.1 million barrels of new storage capacity and the pipelines expected to be placed into service by early 2013 and a further 3.2 million barrels of crude storage capacity expected to be in service by year-end 2013. We have secured long-term contracts for 100% of this additional capacity and our confidence in future growth opportunities continues to build as our existing customer base as well as new customers continue to express strong interest in making future commitments,” added Conner.
