Tulsa — Magellan Midstream Partners LP reported a huge turnaround in margins from its ammonia pipeline for the year and quarter ending Dec. 31, 2011. For the year, operating margins were $7.3 million on revenues of $23.6 million, up from a prior year loss of $4.1 million on revenues of $14.9 million. Volumes moved up to 727,000 st from 2010’s 462,000 st. Extensive hydrotesting, which impacted movement, was done on the line in 2010, less so in 2011. Magellan said as early as the first quarter 2012, all segments of the system have now been tested to ensure the integrity of the pipeline system. The company continues to evaluate the sale of the pipeline and has entered into negotiations, though it cannot estimate the timing of an eventual sale. Fourth-quarter pipeline margins were $3.2 million on revenues of $6.2 million, up from the year-ago $1.75 million on revenues of $5.4 million. Volumes for the quarter were up at 181,000 st from the year-ago 164,000 st. Company-wide, Magellan reported annual net income of $413.6 million ($3.66 per diluted share) on revenues of $1.75 billion, up from 2010’s $311.6 million ($2.85 per share) on revenues of $1.56 billion. Fourth-quarter net income was $110.3 million ($.97 per share) on revenues of $486.9 million, up from the year-ago $87.9 million ($.78 per share) on revenues of $398.5 million.
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