Sunoco Logistics Partners: record crude prices drove profits
Sunoco Logistics pumps profits
Philadelphia-based pipeline operator Sunoco Logistics Partners saw quarterly profits rise on higher margins and fees across its operations, and despite $2.5 million in property damage and an estimated $3 million in lost revenues as a result of this year’s hurricanes.
Sunoco Logistics reported third-quarter net income of $50.3 million, or $1.19 per diluted limited partner unit, compared with $37.5 million, or 97 cents per unit, in the same period last year.
Revenues rose to $2.84 billion from $1.95 billion previously, while operating income rose 26% to $57.8 million.
The company said strong performance in its Western Crude Oil system, where operating income rose $8.1 million to $26.7 million in the period, helped to drive gains. It said higher crude prices in the period were a key driver of profits, but also of higher expenses.
The company also offers an extensive downstream products pipeline system in the eastern US as well as terminal facilities.
For the nine month period, Sunoco Logistics reported net income of $139.2 million, compared with $85.1 million in the same period last year. Revenues for the year to the end of September were $8.56 billion from $5.14 billion previously.
Sunoco Logistics said capital expenditure on maintaining its network of $15.7 million, It said it expected full-year capital expenditure to be $27 million.