Thursday, petroleum products terminalling, storage, and transportation provider NuStar Energy L.P. (NS), reported a decline in profit for the first-quarter from a year ago, primarily due to additional expense related to acquisition of the former CITGO asphalt refining and marketing operations in the beginning of the first quarter. The company has also provided its earnings outlook for the second quarter.
The San Antonio, Texas-based company's first quarter net income applicable to limited partners fell to $31.6 million or $0.58 per unit from $49.6 million or $1.01 per unit in the same quarter last year.
The company noted that earnings results for the first quarter of 2009 included a $4.7 million or $0.08 per unit gain, net of tax, related to property insurance proceeds received due to damage incurred from Hurricane Ike that occurred at the Texas City, Texas terminal in the third quarter of 2008.
Excluding items, adjusted earnings for the quarter would have been $25.8 million or $0.47 per unit.
On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.35 per unit for the quarter. Analysts' estimates typically exclude special items.
Operating income for the quarter was $55.4 million, down from $65.2 million in the prior year quarter.
Total revenues for the quarter increased to $634.0 million from $592.8 million in the comparable quarter last year. Analysts expected the company to report revenue of $903.14 million for the quarter.
Segment wise, service revenues increased to $182.65 million from $180.1 million, and revenue from product sales grew to $451.3 million from $412.6 million, respectively in the prior year quarter.
Looking ahead to the second quarter, the company expects earnings to be in the range of $0.80 to $1.20 per unit. The majority of the projected increase in earnings in the second quarter is expected to come from stronger asphalt results, entering the start of the paving season. Analysts currently expect the company to earn $1.28 per unit for the quarter.
Commenting on the first quarter results, Curt Anastasio, CEO and President of NuStar Energy L.P. and NuStar GP Holdings, LLC, said, "However, a year-over-year quarterly comparison is largely meaningless as NuStar's business changed dramatically with its acquisition of the former CITGO asphalt refining and marketing operations near the end of the first quarter of 2008."
NS is currently trading at $49.93, down $0.01 or 0.02%, on the NYSE.
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