Kilgore, Texas-Martin Midstream Partners LP (MMLP) reported an operating loss in its sulfur business, though fertilizer results were on the uptick for the first quarter ending March 31, 2007. Sulfur reported a first-quarter operating loss of $262,000 on sales of $15.4 million, versus the year-ago profit of $1.15 million and sales of $15.8 million. The decrease was attributed to a 50 percent increase in sales volumes and a 31 percent decrease in sales price. MMLP said its selling price per ton decreased due to the U.S. domestic market price decreasing $19.50 per ton versus the year-ago period. Fertilizer operating profit was $1.8 million on sales of $14.5 million, versus the year-ago $176,000 and $12.1 million, respectively. Fertilizer sales volumes increased 22 percent due to increased demand. “Overall, we are very pleased with our first quarter results,” said Ruben Martin, Martin Midstream GP LLC, the general partner of MMLP. “While the performance of our Sulfur segment has been disappointing, our Natural Gas Services, Marine Transportation and Fertilizer segments continue to outperform. The strength and diversity of these business lines has minimized the impact of our Sulfur segment.” Company-wide, MMLP reported net income of $5.8 million ($.42 per lp unit) on revenues of $155.8 million, versus the year-ago $4.3 million ($.33 per lp) and $146.8 million, respectively. In other news, MMLP on May 2 closed on an acquisition of the outstanding stock of Woodlawn Pipeline Co. Inc., a natural gas gathering and processing company with assets in East Texas. It also closed on an acquisition of a pipeline that delivers residue gas from the Woodlawn processing plant to the Texas Eastern Transmission pipeline system.
Transparency Across the Fertilizer Value-Chain