Tulsa-Magellan Midstream Partners LP says higher tariffs and volumes continue to boost the performance of its anhydrous ammonia pipeline. Operating expenses declined due to lower maintenance expenses, partially offset by higher environmental expenses during the 2008 period. The ammonia pipeline reported an operating margin of $357,000 on sales of $5.1 million for the third quarter ending Sept. 30, 2008, versus the year-ago loss of $2.3 million on sales of $3.7 million. Quarterly volumes were up, at 177,000 st from the year-ago 133,000 st. Nine-month operating margins were $6.7 million on sales of $16.5 million, up from the year-ago loss of $4.4 million on sales of $13.1 million. Nine-month volumes were 624,000 st, up from the year-ago 533,000 st. Company-wide, Magellan reported third-quarter net income of $73.3 million ($.75 per lp unit) on sales of $292 million, versus the year-ago $59.4 million ($.65 per unit) and $321.9 million, respectively. Nine-month net income was $261 million ($2.45 per unit) on sales $911.4 million, versus the year-ago $170.6 million ($1.86 per unit) and $942.1 million, respectively.
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