US Magellan Midstream’s Q1 net income rises 21% year on year

02 May 2013 19:36  [Source: ICIS news]

HOUSTON (ICIS)--Magellan Midstream Partners’ Q1 2013 net income rose almost 21% year on year thanks to decreased costs, the US-based petroleum products transporter said on Thursday.

Net income for the first quarter was $113.0m (€85.9m), up from $93.5m in Q1 2012.

Total revenues in Q1 2013 declined more than 12% to $432.4m from $493.5m the year before.

But net income increased thanks to almost a 22% drop in costs and expenses, with Q1 2013 costs coming in at $292.0m compared with $372.3m the year before.

"Magellan started the year 2013 with solid results, exceeding our initial expectations for the first quarter and generating positive momentum for the remainder of the year," said CEO Michael Mears, chief executive officer. "Further, we continue to make significant strides to develop Magellan's growing crude oil transportation and storage profile.”

Magellan announced several projects during the first quarter of 2013.

In February, it unveiled plans to build new pipeline infrastructure at its Galena Park, Texas, terminal to originate crude oil to the company’s Gulf coast distribution system for delivery to refineries in the Houston and Texas City area.

Also in February, it announced the planned acquisition of 800 miles (1,300km) of refined petroleum products pipeline from Plains All American Pipeline.

In March, Phillips 66 and Magellan made a deal to transport cost-advantaged crude on Magellan’s pipelines near Phillips 66’s refinery in Ponca CityOklahoma. The project, to start up in late 2013, will replace West Texas Intermediate crude from CushingOklahoma, with crude from the nearby Mississippian Lime play.

In April, the Tulsa, Oklahoma-headquartered company said it was beginning commercial operations of its partially reversed Longhorn pipeline, which was converted to transport crude oil from Crane in west Texas to Houston.

($1 = €0.76)

By: Jeremy Pafford
+1 713 525 2653

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