Americas News
NuStar Profits Jump, Despite Lower Revenues
Net income for U.S. firm NuStar Energy L.P [NYSE:NS] (NuStar) jumped 62 percent year-over-year to $39.6 million in Q1 despite a 15 percent drop in revenues to $849.2 million, the company reports.
"During the first quarter, we took steps to improve NuStar's profitability by divesting our remaining interest in the asphalt joint venture and by finalizing several agreements related to our pipeline and terminal operations," said President and CEO Brad Barron.
"In February, we announced the signing of a long-term agreement with Occidental Petroleum to transport NGLs on our currently idled, 200-mile, 12-inch pipeline between Mont Belvieu and Corpus Christi, Texas.
"Then in early March, we announced that we signed long-term storage agreements for our St. Eustatius and Pt. Tupper terminals for a combined eight million barrels of storage capacity."
NuStar completed a private marine loading dock in Corpus Christi, Texas in February, more than tripling the previous loading capacity to allow the company to handle new volume from the South Texas Crude Oil Pipeline expansion.
The firm's fuels marketing division produced an operating income of $9.6 million, compared with a loss of $1.6 million in Q1 2013, as its gross margin on fuel sales grew to $21.5 million from $14.3 million despite a 20 percent drop in product sales.
Barron said the company expects improved results in its bunkering operations in Q2 compared with the same period last year.
The company has been moving to take advantage of increasing production from Texas shale formations in recent years.
