Buckeye Partners (BPL) Misses Q1 EPS by 15c, Revenues Beat

Buckeye Partners (NYSE: BPL) reported Q1 EPS of $0.88, $0.15 worse than the analyst estimate of $1.03. Revenue for the quarter came in at $969.27 million versus the consensus estimate of $860.93 million.

“We are pleased to announce another quarter of improved financial results,” said Clark C. Smith, Chairman, President and Chief Executive Officer. “Our Global Marine Terminals segment reported a contribution for the first time from our recent acquisition of a 50% equity interest in VTTI that closed early in the first quarter of 2017, which drove our year-over-year improvement in performance. This segment's legacy assets continued to benefit from high utilization but were adversely impacted early in the quarter by operational issues experienced at our South Texas facility. Our Domestic Pipelines & Terminals segment saw strong contributions from growth capital investments that drove higher pipeline transportation and storage revenues during the period. Our Buckeye Merchant Services business continues to benefit from effective supply chain management efforts, driving solid results that were partially offset by compressed rack margins as a result of warmer-than-expected weather conditions during the quarter.”

“The first quarter’s performance highlights our ability to execute and deliver upon capital investment opportunities, both organic and acquisition related,” continued Mr. Smith. “Our VTTI investment made a meaningful contribution to the first quarter results and phase one of our Michigan/Ohio project moved into a fully operational status, with planned contributions increasing throughout 2017 as customers ramp up volumes. We continue to evaluate numerous capital expansion opportunities and are progressing on our recently announced plans for our South Texas Gateway Pipeline project, which would be the largest greenfield project in our company’s history. This project includes a long-haul pipeline from the Permian Basin to the company’s hub in Corpus Christi, Texas. This presents an exciting opportunity for us to position ourselves in one of the most prolific oil-producing basins in the world.”

For earnings history and earnings-related data on Buckeye Partners (BPL) click here.

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