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Houston-based Oiltanking Partners, L.P. has posted a 27.5 million rise in third quarter net income to $35.3 million compared to $7.8 million in the corresponding period last year.

Net income quarter, excluding this benefit and other gains and losses, was $13.8 million. Adjusted EBITDA was $18.1 million compared to $16.6 million for the third quarter of 2010. Adjusted EBITDA was $51.7 million for the nine months ended September 30, 2011 compared to $48.5 million for the prior-year period.

The overall operating results for the third quarter of 2011 improved compared to last year. Operating expenses were lower by $0.7 million compared to 2010, primarily due to favorable property taxes, Oiltanking said.

Selling, general and administrative expenses were also lower quarter-on-quarter, by $0.8 million, primarily due to lower employee-related costs. Revenues remained strong for the third quarter of 2011 compared to last year, as higher storage service fees and throughput fees were offset by lower ancillary service fees.

Speaking about the results, Carlin Conner, Chairman, President and Chief Executive Officer of the Partnership's general partner, said: "We are pleased to report solid results for the third quarter, our first period of operations since going public in July. The successful launch of the Partnership was a significant milestone for Oiltanking and an integral part of our strategy to continue to grow our North American operations.

"Over the last 30 years, we have established a strategic position with deepwater docks, tank storage and pipeline connectivity to the major refineries along the upper Gulf Coast, making us an important part of the crude oil supply chain in the U.S. With several significant pipelines being reversed or under-construction to deliver additional crude oil from domestic shale plays, Cushing and Canadian oil sands to the Gulf Coast refineries, we are excited about our prospects for growth. Our recently announced crude expansion project represents our first phase of growth plans to take advantage of the incremental crude flows to the Gulf Coast that will allow us to transport and store additional crude for our customers and further position us for growth."

Commenting on it existing projects Oiltanking said: "The partnership's additional storage capacity of one million barrels that is in the process of being constructed is progressing on time and on budget. We expect that the first two-thirds of this storage capacity will be placed into service by December 1, 2011, with the remaining capacity coming on line early in the second quarter of 2012."

Oiltanking provides storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. Its general partner is owned by Oiltanking Holding Americas Inc., a subsidiary of Germany's Oiltanking GmbH, the second largest independent tank storage provider for petroleum products, chemicals and gases worldwide.

Oiltanking owns and operates 71 terminals in 22 countries within Europe, North and South America and Asia. Its overall storage capacity exceeds 17.6 million cubic metres.