Americas News
Buckeye Partners Sees Big Growth in Q2
U.S.-based Buckeye Partners L.P. [NSYE:BPL] (Buckeye) reported a jump in profits to $76.4 million in the second quarter of 2013, up from $54.4 million in the same period last year, as revenues grew to $1 billion from $982.6 million.
"Growth capital investments and strong business conditions contributed to our excellent financial results for the quarter," said President and CEO Clark C. Smith.
"We continued to benefit from increased throughput volumes on our domestic pipeline and terminal systems this quarter.
"In addition, our capital investments in our International Operations segment as well as improved rack margins and continued success in executing our risk management strategy in our Energy Services segment were solid contributors to our results."
In the company's earnings call, Smith said its Bahamas marine terminal, BORCO, had increased costs for the quarter as it expanded.
He said BORCO has brought online 3.5 million barrels of incremental storage capacity since July 2012 and expects the next expansion, of 1.2 million barrels of crude oil storage, to be operational in September.
BORCO is one of the largest crude oil and petroleum products storage facilities in the world, according to Buckeye.
Smith said the company is working to build its international fuel oil business, but that most of its international segment growth was related to legacy assets.
The BORCO operation has been controversial partly due to a number of recent oil spills.
