Record second quarter results have been posted by Oiltanking Partners, LP. Net income for Q2 was U$ 42.3 million, an increase of 43.3% on the same quarter last year. Revenues increased by US$ 17.0 million to US$ 69.1 million during Q2, a 32.6% rise on Q2 2013. This has been attributed to higher storage service fee revenues, throughput fee revenues and ancillary service fee revenues.
Storage fee revenues were up US$ 6.8 million due to new storage capacity of 3.2 million bbls which were placed in to active service in the second half of last year and 2 million bbls were also placed into service in January of this year. Throughput fee revenues increased by US$ 8.9 million during Q2 2014 and this has been attributed to fees for pipeline throughput, fees from in terminal sales between customers, LPG exports at the Houston terminal and customer deficiency charges.
During Q2 operating expenses were US$ 14 million, an increase of US$ 3 million on Q2 2013. This is due to higher costs associated with personnel, rental, insurance and increased capacity. Selling and admin expenses were US$ 6.3 million, an increase of US$ 1.5 million on Q2 2013, this is attributed to the July 2013 increase in the fixed services agreement fee.
Ken Owen, President, CEO, Oiltanking Partners’ general partner said, ‘we continue to benefit from strong growth in customer export initiatives and logistics needs. General activity at our terminals has increased, and we achieved a new throughput record of more than 1.25 million bpd this quarter. Our Houston expansion projects are enhancing our storage, distribution and export capabilities, allowing us to capitalise on increased customer demand for energy logistics services.
‘We have made excellent progress at Appelt II, successfully placing into service six storage tanks with a total storage capacity of approximately 2 million bbls. We are on track to deliver the reminder of the tanks along with the two previously announced Crossroads pipelines on schedule. We are also very pleased to have received the necessary permits and broken ground on our Beaumont expansion. Our goal is to build a world class crude terminal in Beaumont that positions us to execute the same business model we have applied in Houston of delivering maximum connectivity and logistics flexibility to our customers.’
Adapted from press release by Claira Lloyd
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