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Publicly-listed US firm, TEPPCO Partners, L.P, which amongst its activities is involved in the transportation of heavy fuel oil and the delivery bunker fuel to ships, has reported a $36.5 million drop in net income during the second quarter of 2009 to $11.2 million, or $0.09 per unit, compared with net income of $47.7 million, or $0.42 per unit, for the second quarter of 2008.

Commenting on the results, Jerry E. Thompson, president and chief executive officer of the general partner of TEPPCO said “We were pleased with our performance in the second quarter of 2009 in light of the ongoing recessionary conditions.”

With regard to TEPPCO's marine services division, Thompson said, “In June 2009, we expanded our Marine Services fleet with the purchase of 47 vessels from TransMontaigne Product Services. This $50 million acquisition provided the opportunity to expand our marine transportation business to include fuel bunkering operations to cargo and cruise ships and is supported by long-term contracts of up to five-years.”

The marine services segment includes marine transportation of refined products, crude oil, asphalt, condensate, heavy fuel oil and other heated oil products via tow boats and tank barges.

With the June 5, 2009 acquisition of assets from Transmontaigne, the marine services segment also delivers bunker fuels to cruise liners and cargo ships and fuel oil for electric generation plants.

In total 19 boats and 28 barges were acquired from TransMontaigne in the last quarter.

The company said adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the marine services segment was $14.8 million for the second quarter of 2009, compared with $15.0 million for the second quarter of 2008.

TEPPCO said the decrease was primarily due to a lower utilization rate of its existing inland and offshore vessel fleet as a result of recessionary economic conditions, partially offset by the Adjusted EBITDA contributed from the assets acquired in June 2009.

TEPPCO’s fleet operated at an 88 percent utilization rate in the second quarter of 2009, compared with 92 percent in the second quarter of 2008.