BP Midstream Partners, a spin-off company that owns the pipelines to the BP Whiting Refinery, nearly quadrupled its profits year-over-year to $43.5 million in the third quarter.
The spin-off, which was launched last year, owns and operates the pipelines that bring crude oil to and ship refined gasoline from the BP Whiting Refinery, among other BP operations around the country. It beat the $16.4 million in profit for the third quarter of 2018 that was forecast when the company's initial public offering was launched.
BP Midstream Partners pulled in $47.3 million in earnings before interest, taxes, depreciation and amortization, or EBITDA, during the three-month period through the end of September.
"Our high-quality asset portfolio delivered another strong result for the third quarter," BP Midstream Partners CEO Robert Zinsmeister said. "The third quarter results demonstrate again that we are building a solid track record of delivering on our promises to the market."
The company's assets include the BP2 crude oil pipeline system that transports crude oil for BP from the Griffith Terminal to BP’s Whiting Refinery, the River Rogue refined pipeline system that sends petroleum products from the BP Whiting Refinery to Detroit ande the Diamondback pipeline system that sends diluent from Black Oak Junction in Gary to Illinois.
"Our third quarter total pipeline gross throughput was around 1.5 million barrels of oil equivalent per day, higher than the second quarter, as previously guided, reflecting higher volumes on River Rouge, due to strong performance of the BP Whiting Refinery during the quarter ahead of planned maintenance," Zinsmeister said.
"Lower volumes on BP2 were consistent with the start of planned maintenance at the Whiting Refinery in mid-September," he said. "This maintenance is scheduled to continue through mid-November. A reminder that we have minimum volume commitment arrangements in place with BP with respect to throughput on our onshore pipelines, mitigating the impact to our cash available for distribution from this maintenance."