Buckeye revenues up

10.05.16. Buckeye Partners first quarter adjusted EBITDA grew by 14.8 percent from the prior year period on stronger storage demand.
EBITDA was US$244.6 million compared with $212.9 million for Q1 2015.
“Our global marine terminals performance was substantially improved as compared with last year,” commented Buckeye CEO Clark Smith. “The results were driven primarily by cash flows from the growth capital investments at Buckeye Texas Partners coupled with strong demand for storage services across its legacy assets.
“Domestic pipelines and terminals were essentially in line with last year’s results despite a decline in pipeline and terminal throughput volumes as a result of milder weather, decreased demand for off-road diesel and market supply shifts,” Smith added.
Operating income for the domestic pipelines and terminals business was $102 million against $107.5 million a year ago.
Buckeye continues to expand its portfolio, including the modernisation of its New York Harbor complex and the construction of the Michigan/Ohio Pipeline Expansion, which is on schedule to be operational late this year.
The Midwest pipeline project will offer greater transport of refined petroleum products from origin points in the Midwest to destinations in Ohio and western Pennsylvania and is supported by long-term shipper commitments.
Distributable cash flow for the first quarter was $178.9 million, up from $155.7 million for Q1 2015. Buckeye also posted distribution coverage of 1.14 times for the first quarter.