Tulsa-Magellan Midstream Partners LP reported a huge increase in operating margins from its anhydrous ammonia pipeline system for the full year and fourth quarter ending Dec. 31, 2008. Full-year margins were $8.6 million on revenues of $22.7 million, versus the year-ago loss of $3 million on revenues of $18.3 million. Annual expenses were down to $14.1 million from $21.3 million. Volumes shipped in 2008 were 822,000 st versus 2007’s 716,000 st. Fourth-quarter operating margins were $1.9 million on revenues of $6.2 million, versus the year-ago $1.4 million and $5.2 million, respectively. Fourth-quarter expenses were up, at $4.2 million from the year-ago $3.8 million. Fourth-quarter volumes were also up, at 198,000 st from the year-ago 183,000 st. Magellan said revenues were up due to higher average tariff rates and additional shipments. Operating expenses increased due to higher environmental accruals related to historical releases primarily offset by lower maintenance expenses due to project timing. Magellan full-year 2008 net income was $346.6 million ($3.27 per diluted share) on sales of $1.2 billion, versus 2007’s $242.8 million ($2.60 per share) and $1.3 billion. Fourth-quarter net income was $85.6 million ($.83 per share) on sales of $301.4 million, versus the year-ago $72.2 million ($.74 per share) and $376.0 million.
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