Buckeye Revenues Up on Hess Acquisition

by Ship & Bunker News Team
Tuesday May 6, 2014

Buckeye Partners L.P. [NSYE:BPL] (Buckeye) reports its revenues rose 50 percent year-over-year to $1.7 billion in the first quarter of 2014, which was the first full quarter of contributions from terminals the company acquired from Hess Corp. [NYSE:HESS] (Hess) in December.

The U.S.-based company reported profits of $90.5 million for the quarter, up from $89.3 million in Q1 2013.

"Work remains to be done on our Hess integration and commercialization efforts to realize the full benefit from this acquisition, but we are pleased with our results to date," said President and CEO Clark C. Smith.

Growth capital investments across our legacy assets were also a key driver of improved performance over the year-ago quarter.

"Investments in crude rail operations at our Chicago Complex and the expansion of crude oil storage at our BORCO terminal contributed to the uplift."

The company's merchant services revenue grew by 56 percent to $1.7 billion as product volume rose 59 percent to 569 million gallons thanks to increased activities around the Hess terminals and increased volumes in the company's fuel oil supply business, Chief Financial Officer Keith St. Clair told analysts on the company's earnings call.

Buckeye paid $850 million for Hess's terminals on the U.S. East Coast and St. Lucia.
 

Ship & Bunker News Team
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