Petroleum products provider Magellan Midstream Holdings L.P. (MGG) Wednesday reported a sharp decline in first quarter profit, absent a huge gain recorded in the prior year quarter. Revenues also declined sharply from the prior year quarter.
For the first quarter, Magellan reported net income that plunged to $41.17 million from $89.35 million in the same quarter a year ago.
Prior-year quarter included a gain of $26.49 million related to assignment of supply agreement of a third-party during March 2008, which was absent for the recent quarter.
Net income per limited partner unit was $0.19, compared to $0.29 in the prior-year quarter. Net income applicable to limited partners and general partner was $12.02 million, compared to $17.61 million in the year-earlier quarter.
On average, six analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter dropped to $212.92 million from $346.71 million in the corresponding quarter last year, below Street estimates of $305.95 million.
Operating profit was $56.1 million, compared to $74.8 million for first quarter 2008.
MGG is currently trading at $19.27, down $0.37 or 1.88%, on a volume of 0.67 million shares.
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