Blueknight Energy Partners achieved a net income of $6.4m on total revenues of $43.9m in the second quarter of 2017. This compares to a net loss of $18.9m on total revenues of $43.4m for the same period in 2016.
BKEP CEO, Mark Hurley said: “Our asphalt terminalling services segment continues to hit on all cylinders in spite of wetter-than-normal conditions in many areas of the country in which we operate facilities. Operating margin for the segment increased $3.3 million or 28% quarter-over-quarter before taking into consideration depreciation and amortization. Steady customer demand and the addition of nine terminals from Ergon in October 2016 helped drive the strong results. As we look ahead, we anticipate an even stronger third quarter when we traditionally see increased activity. Our strategy to grow by expanding our terminalling footprint, particularly in the asphalt segment, is clearly paying dividends.
“Our crude oil terminalling and storage segment performed about as expected during the first half of the year. Our business at Cushing remains fully contracted and inventories remain well above the 5-year average. Our crude oil trucking and field services segment continues to be hampered by a sustained, lower-price crude oil environment and flatter forward curve resulting in increased competition and lower margins for existing volumes. Our crude oil pipeline segment results are affected by an out of service pipeline due to the wash-out of a riverbed in 2016. However, we have a clear path forward to restarting this line and we expect to resume service in the 4th quarter of this year. In addition, results in this segment for the three months ended June 30, 2016, included two significant items – we recorded an impairment expense of $22.6 million, mostly related to the cancellation of the Knight Warrior East Texas Eaglebine/Woodbine crude oil pipeline project, and we recognized $1.6 million in sales of crude oil arising from accumulated product loss allowances.”
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30th Aug 2017