14 - 16 March 2023 | Rotterdam Ahoy

NuStar reports record Permian volumes, ‘solid’ Q2 2022 results

US terminal and pipeline company NuStar Energy has reported what it describes as ‘solid’ Q2 2022 results supported by record volumes of 522,000 bpd in its Permian crude system.

These crude volumes represent an increase of 16% compared to Q2 2021 volumes, and are up 2% compared to Q1 of 2022. The company says this is testament to its producers and shows the strength of its assets. NuStar expects volumes to increase to 560,000–570,000 bpd by the end of the year, 10% higher than 2021.

Net income of US$59 million is now slightly from US$63 million in Q2 2021, while EBITDA is also slightly down compared to the US$189 million reported in Q2 2021, at US$175 million. However, NuStar president and CEO Brad Barron says that this was largely due to selling the eastern US terminals in October 2021, and that like-for-like, Q2 2022 EBITDA is comparable to 2021. The figures were also affected by customer transitions and tank maintenance at the St James terminal and minimum volume commitment settlements at the Corpus Christi North Beach terminal.

NuStar has lowered its debt balance, and at the end of Q2 2022 had a debt-to-EBITDA ratio of 3.93, compared to 4.27 at the end of Q2 2021. This was partly to do with the recent divestments.

Refined volumes continue to track at pre-pandemic levels, and have increased compared to Q2 2021. Barron says this reflects the strength of the company’s assets and the stability of demand, despite some short-term operational issues at customer refineries.

See more here.

Source: tankstoragemag.com

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