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Oiltanking Partners, L.P. has reported record second quarter 2014 net income of $42.3 million, or $0.37 per unit, representing an increase of 43.3% on second quarter 2013 net income of $29.5 million, or $0.31 per unit.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 34.3% to $48.8 million for the second quarter of 2014, compared to $36.4 million for the corresponding period in 2013.

Revenues increased by approximately $17.0 million, or 32.6%, to $69.1 million during the second quarter of 2014 compared to the same period in 2013. This was said to be due to higher storage service fee revenues, throughput fee revenues and ancillary service fee revenues.

Storage service fee revenue grew by $6.8 million due to new storage capacity of approximately 3.2 million barrels placed into service in the second half of 2013 and 2.0 million barrels placed into service since January 2014. Throughput fee revenues grew by $8.9 million during the second quarter of 2014 due to fees related to pipeline throughput, fees from in-terminal sales between customers, liquefied petroleum gas (LPG) exports at the firm's Houston terminal and customer deficiency charges recognized in the current period.

"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 barrels per day this quarter," said Ken Owen, President and Chief Executive Officer of Oiltanking's general partner. "Our Houston expansion projects are enhancing our storage, distribution and export capabilities, allowing us to capitalize 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 2.0 million barrels. We are on track to deliver the remainder of the tanks along with the two previously-announced Crossroads pipelines on schedule," said Owen. "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."

Operating expenses during the second quarter of 2014 were $14.0 million, increasing by $3.0 million compared to the corresponding period in 2013. This was said to be due to higher costs associated with operations personnel, rental expense, insurance and other expenses largely attributable to increased capacity. Selling, general and administrative expenses during the second quarter of 2014 were $6.3 million, increasing by $1.5 million compared to last year.

As announced in June, Oiltanking has increased its estimate of 2014 capital expenditures by $50 million, primarily to reflect its investment in the Beaumont crude expansion, and it now expects to spend between $300 million and $320 million this year.