Wed 17 Feb 2016, 11:06 GMT

Buckeye posts rise in 2015 income


Income from continuing operations rose by 23.7 percent last year.



Buckeye Partners, L.P. has announced that it achieved an income from continuing operations of $438.4 million compared with $334.5 million in 2014, representing a rise of $103.9 million, or 23.7 percent.

Income from continuing operations attributable to Buckeye's shareholders was $3.41 per diluted unit for 2015, compared with $2.78 per diluted unit in 2014. The diluted weighted average number of units outstanding for 2015 was 128.6 million compared with 119.9 million in 2014.

For 2015, Adjusted EBITDA from continuing operations was $868.1 million compared with $763.6 million in 2014. Distributable cash flow from continuing operations for 2015 was $612.4 million compared with $526.8 million in 2014.

Fourth-quarter results

During the fourth quarter, Buckeye's income from continuing operations was $135.1 million compared with $64.0 million in the fourth quarter of 2014.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations for the fourth quarter of 2015 was $244.5 million compared with $223.5 million during the corresponding period the previous year.

Income from continuing operations attributable to Buckeye's unitholders was $1.03 per diluted unit for the fourth quarter of 2015 compared with $0.50 during the prior-year period. The diluted weighted average number of units outstanding in the fourth quarter of 2015 was 129.7 million compared with 127.6 million in 2014.

Commenting on the results, Clark C. Smith, Chairman, President and Chief Executive Officer, remarked: "Buckeye's outstanding fourth quarter and full year financial results further demonstrate the benefits of our diversification strategy and the strength of our position in the market.

"Our Global Marine Terminals and Merchant Services segments drove substantial incremental contributions compared to last year. We were able to capitalize on strong demand in the market to increase utilization of our storage assets at higher contracted rates."

On December 7, 2015, Buckeye announced the commissioning of the 50,000-barrel-per-day condensate splitter facility at Buckeye Texas Partners LLC in Corpus Christi. "During the fourth quarter, the condensate splitters along with the previously commissioned refrigerated LPG storage generated incremental cash flows under long-term, take-or-pay agreements with Trafigura Trading LLC," said Mr. Smith. "We expect the completion of the remaining construction of our South Texas project by the end of the first quarter of 2016," he added.

"With the completion of our South Texas project and the continued strength across our asset portfolio, we are positioned to see significant improvement in both our annual distribution coverage and leverage through 2016," stated Mr. Smith. "This strong financial position gives us the confidence to continue to grow the quarterly distribution at a rate of $0.0125 per LP Unit and we believe continuing this distribution policy through the remainder of 2016 will maximize long-term shareholder value."


Castrol Logo. BP to sell 65% stake in Castrol to Stonepeak for $10bn enterprise value  

Deal brings BP's divestment programme to $11bn, with proceeds earmarked for debt reduction.

Clippership 24-metre class autonomous wind-powered vessel. RINA approves design for Clippership's 24-metre autonomous wind-powered cargo vessel  

Classification society to supervise construction of zero-emission ship featuring twin rigid wings for transatlantic operations.

CMA CGM Antigone vessel. Bureau Veritas classes first methanol dual-fuel boxship as CMA CGM takes delivery  

The 15,000-teu CMA CGM Antigone was built by CSSC Jiangnan Shipyard in China.

AiP award ceremony for floating nuclear plant design. Samsung Heavy Industries' floating nuclear plant design wins ABS approval  

Concept features twin KAERI small modular reactors and a compartmentalised layout to support offshore nuclear power generation.

Claire-Celine Bausager Jørgensen, Dan-Bunkering. Dan-Bunkering Europe appoints Claire-Celine Bausager Jørgensen as senior fuel supplier  

Jørgensen returns to bunker trading after several years in the company's HR department.

CMA CGM Tivoli vessel. DHL and CMA CGM partner on 8,990-tonne biofuel purchase for ocean freight decarbonisation  

Logistics and shipping firms to use UCOME biofuel, targeting 25,000-tonne CO2e reduction.

FincoEnergies Logo. Glencore to acquire majority stake in Dutch marine fuel supplier FincoEnergies  

Transaction expected to complete in Q2 2026, subject to EU anti-trust approval.

CMA CGM Eugenie naming ceremony. CMA CGM names 15,000-teu methanol-fuelled containership CMA CGM Eugenie  

Vessel to operate on Phoenician Express service linking Asia, Middle East, and Mediterranean.

Christian Larsen, Island Oil. Island Oil appoints Christian Larsen as senior trader in Denmark expansion  

Marine fuel supplier establishes operations in Denmark as part of expansion strategy.

HIF Global and Government of Uruguay MoU signing. HIF Global signs Uruguay agreement to advance US$5.3bn e-fuels facility in Paysandú  

Memorandum sets roadmap for final investment decision on plant targeting 880,000 tonnes annual production.