---

Publicly-listed US firm, TEPPCO Partners, L.P, which amongst its activities is involved in the transportation of heavy fuel oil, has announced a rise in net profit of $14.1 million during the first quarter of 2009 compared to the same period last year, despite a period of lower fleet utilization.

The company reported a first quarter net income for 2009 of $78.2 million, or $0.62 per unit, compared with net income of $64.1 million, or $0.57 per unit, for the first quarter of 2008. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 10 percent to $159.0 million for the first three months, compared with $145.1 million for the first quarter of 2008.

EBITDA for the Marine Services segment, which includes marine transportation of refined products, crude oil, asphalt, condensate, heavy fuel oil and other heated oil products via tow boats and tank barges, was $11.6 million for the first quarter of 2009, compared with $10.3 million for the two-month period beginning from the date of acquisition of Cenac Towing on February 1st 2008.

TEPPCO confirmed that the utilization rate in the first quarter of 2009 dropped to 89 percent from 93 percent during the first quarter of 2008. The lower utilization rate in the 2009 period was said to be due to reduced demand for barging services as a result of recessionary economic conditions in the industry.

Commenting on the results, Jerry E. Thompson, president and chief executive officer of the general partner of TEPPCO, said the profits achieved in the company's upstream and downstream businesses had been partially offset by lower fleet utilization of the Marine Services business segment.

Despite the ower utilization rate, Thomson said "Our fleet is well positioned to benefit from market opportunities as they arise and we remain optimistic about the performance of this segment, which was formed in the first quarter of 2008."

Thompson continued, "We are pleased with our cash flow this quarter, which solidly supported the $0.725 per unit quarterly distribution rate, or $2.90 on an annualized basis, announced earlier this month. We also remain focused on maintaining an adequate level of liquidity, which was $357 million at March 31, 2009."