Tue 7 May 2013, 07:17 GMT

Buckeye posts 71.7% rise in Q1 net income


'Excellent' financial results driven primarily by the performance of Buckeye's pipelines and terminals segment.



Oil terminal and pipeline operator Buckeye Partners, L.P. has posted a $37.3 million, or 71.7 percent, rise in net income during the first quarter of 2013 compared with the corresponding period last year.

Buckeye reported a net income of $89.3 million, or $0.86 per diluted unit, compared to $52.0 million, or $0.54 per diluted unit, during the first three months of 2012.

Adjusted EBITDA for the first quarter of 2013 was $158.8 million compared with $115.0 million during the same period in 2012. Operating income for the first three months was $119.1 million compared to $80.7 million the previous year.

Commenting on the results, Clark C. Smith, President and Chief Executive Officer (CEO), said: "During the first quarter of 2013, we continued to generate excellent financial results, primarily due to the performance of our pipelines and terminals segment, which benefited from the strong contribution from our terminal operations.

"We also placed an additional 1.6 million barrels of leased storage capacity into service at BORCO during the quarter, and realized improved performance in the energy services segment. As a result of Buckeye’s exceptional results over the past three quarters and the positive outlook we have for future periods, we are pleased to announce an increase in our quarterly cash distribution."

Buckeye owns and operates one of the largest independent liquid petroleum products pipeline systems in the United States in terms of volumes delivered, with over 6,000 miles of pipeline.

Buckeye also owns approximately 100 liquid petroleum products terminals with aggregate storage capacity of approximately 69 million barrels, operates and/or maintains approximately 2,800 miles of pipeline under agreements with major oil and chemical companies, owns a high-performance natural gas storage facility in Northern California, and markets liquid petroleum products in certain regions served by its pipeline and terminal operations.

Buckeye’s flagship BORCO marine terminal in The Bahamas, is one of the largest crude oil and petroleum products storage facilities in the world, serving the international markets as a premier global logistics hub.


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