Magellan Midstream Holdings, L.P. (MGG), a company owning the general partner interest and incentive distribution rights of Magellan Midstream Partners, L.P. (MMP), reported Monday a steep decline in second-quarter profit, reflecting both a decrease in revenues and the absence of a reduction in non-recurring expense that the company enjoyed last year.
For the second quarter, net income allocated to limited partners declined sharply to $14.61 million or $0.23 per unit from $31.31 million or $0.50 per unit in the previous year. The prior-year results included a benefit from unusually high product margins and a $12.1 million one-time expense reduction related to a June 2008 favorable settlement for a historical environmental matter.
Net income tumbled year-over-year to $49.14 million from $90.33 million.
On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per unit in the second quarter. Analysts' estimates typically exclude special items.
Total revenues for the period decreased to $208.22 million from $273.13 million. Three analysts were expecting revenue of $229.05 million in the second quarter.
Transportation and terminals revenues rose to $166.70 million from $162.58 million, while product sales revenues plunged to $41.33 million from $110.36 million in the year-ago period.
For the first six months, net income allocated to limited partners slid to $26.63 million or $0.42 per unit from $49.33 million or $0.79 per unit last year. Net income almost halved to $90.31 million from $179.68 million. Revenues shrank to $421.15 million from $619.83 million in the same period last year.
MGG is currently trading at $23.27, up $0.67 or 2.96%, on the NYSE.
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