Tulsa-Magellan Midstream Partners LP reported improved ammonia pipeline results for the fourth quarter ending Dec. 31, 2007; however, they were not good enough to put the unit’s annual margins into the plus column. Fourth-quarter operating margin was $1.4 million on sales of $5.2 million, up from the year-ago $271,000 and $4.8 million, respectively. Fourth-quarter volumes were off slightly, to 183,000 st from the year-ago 189,000 st. Magellan said the improvement was due to higher average tariff rates and lower maintenance costs and environmental accruals. For the year, the pipeline had an operating loss of $3.0 million on sales of $18.3 million, versus the year-ago margin of $2.5 million on sales of $16.5 million. Operating expenses for the year were $21.3 million, up from the prior year’s $14 million. 2007 volumes were off slightly to 716,000 st, down from the 2006’s 726,000 st. Company-wide, Magellan reported fourth-quarter net income of $72.2 million ($.74 per diluted share) on sales of $376.0 million, versus the year-ago $56.4 million ($.64 per share) and $316.1 million. For the year, net income was $242.8 million ($2.60 per share) on sales of $1.3 billion, versus 2006’s $192.7 million ($2.24 per share) and $1.2 billion.
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