US-based pipeline and terminal operator NuStar Energy has reported a slight decline in second quarter profit, but the company said it had reduced its debt and saw record-breaking amounts of crude oil flow through its Permian pipeline network.
NuStar posted adjusted profit of $57.6 million, or 19 cents per unit, in the three months ending June 30. That was down 9 percent from a year ago.
Over the past year, NuStar has sold eight storage terminals on the East Coast and one in Nova Scotia, resulting in lower earnings than a year ago, when the company still had those terminals in its portfolio. The company sold the storage terminals for more than $300 million and used the proceeds to pay down debt.
Revenue increased slightly to $430 million from $427 million. Its results were largely in line with Wall Street analysts’ expectations.
“We are pleased that our recent divestitures have enabled us to continue to move toward our stated goal of significantly improving our debt metrics and building our financial strength and flexibility,” president and CEO Brad Barron said in a statement.
The total throughput — or daily volume of fuel flowing through a pipeline — of NuStar’s 10,000-mile pipeline system declined nearly 3 percent from last year to 1.8 million barrels of crude oil and refined products. It attributed the decline to operational issues at customer refineries.
Still, NuStar’s Permian crude oil pipeline system handled a record 522,000 barrels per day, an increase of 16 percent from the same period last year.
The company’s pipeline business generated income of $101 million, up from $96.5 million a year ago.
(Source: Tank News Int., August 5-2022)