Wed 17 Feb 2016 11:06

Buckeye posts rise in 2015 income


Income from continuing operations rose by 23.7 percent last year.



Buckeye Partners, L.P. has announced that it achieved an income from continuing operations of $438.4 million compared with $334.5 million in 2014, representing a rise of $103.9 million, or 23.7 percent.

Income from continuing operations attributable to Buckeye's shareholders was $3.41 per diluted unit for 2015, compared with $2.78 per diluted unit in 2014. The diluted weighted average number of units outstanding for 2015 was 128.6 million compared with 119.9 million in 2014.

For 2015, Adjusted EBITDA from continuing operations was $868.1 million compared with $763.6 million in 2014. Distributable cash flow from continuing operations for 2015 was $612.4 million compared with $526.8 million in 2014.

Fourth-quarter results

During the fourth quarter, Buckeye's income from continuing operations was $135.1 million compared with $64.0 million in the fourth quarter of 2014.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations for the fourth quarter of 2015 was $244.5 million compared with $223.5 million during the corresponding period the previous year.

Income from continuing operations attributable to Buckeye's unitholders was $1.03 per diluted unit for the fourth quarter of 2015 compared with $0.50 during the prior-year period. The diluted weighted average number of units outstanding in the fourth quarter of 2015 was 129.7 million compared with 127.6 million in 2014.

Commenting on the results, Clark C. Smith, Chairman, President and Chief Executive Officer, remarked: "Buckeye's outstanding fourth quarter and full year financial results further demonstrate the benefits of our diversification strategy and the strength of our position in the market.

"Our Global Marine Terminals and Merchant Services segments drove substantial incremental contributions compared to last year. We were able to capitalize on strong demand in the market to increase utilization of our storage assets at higher contracted rates."

On December 7, 2015, Buckeye announced the commissioning of the 50,000-barrel-per-day condensate splitter facility at Buckeye Texas Partners LLC in Corpus Christi. "During the fourth quarter, the condensate splitters along with the previously commissioned refrigerated LPG storage generated incremental cash flows under long-term, take-or-pay agreements with Trafigura Trading LLC," said Mr. Smith. "We expect the completion of the remaining construction of our South Texas project by the end of the first quarter of 2016," he added.

"With the completion of our South Texas project and the continued strength across our asset portfolio, we are positioned to see significant improvement in both our annual distribution coverage and leverage through 2016," stated Mr. Smith. "This strong financial position gives us the confidence to continue to grow the quarterly distribution at a rate of $0.0125 per LP Unit and we believe continuing this distribution policy through the remainder of 2016 will maximize long-term shareholder value."

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