The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Oil Refining Company (BORCO) enjoyed a 9.8 per cent year-over-year revenue increase for the 2012 third quarter due to an extra 1.1 million barrels of storage capacity coming online, as it increased its share of its parent’s international operations to 93 per cent.

New York Stock Exchange (NYSE) listed Buckeye Partners, in its form 10-Q filing with the Securities & Exchange Commission (SEC), said BORCO had increased revenues for the three months to end-September 2012 to $48.2 million, up from $43.9 million during the same period last year.

Those figures accounted for 93.2 per cent, and 91.5 per cent, respectively, of Buckeye’s total 2012 third quarter international operations, which also includes its Puerto Rico terminal.

“The international operations segment’s revenue generated in the Bahamas was $48.2 million and $43.9 million for the three months ended September 30, 2012 and 2011, which represented 93.2 per cent and 91.5 per cent, respectively, of the international operations segment’s total revenue for the periods,” Buckeye said.

“For the nine months ended September 30, 2012, and 2011, the international operations segment’s revenue generated in the Bahamas was $141.4 million and $134.1 million, which represented 92.8 per cent and 91.8 per cent, respectively, of the international operations segment’s total revenue for the periods.”

The figures showed that BORCO’s revenues for the first nine months of 2012 had risen by 5.4 per cent year-over-year, largely due to the expansion of storage capacity at the Grand Bahama facility.

“Adjusted EBITDA from the international operations segment was $33.5 million for the three months ended September 30, 2012, which is an increase of $3.4 million, or 11.5 per cent from $30.1 million for the corresponding period in 2011,” Buckeye said.

“The positive factors impacting adjusted EBITDA were primarily related to a $2.1 million decrease in expenses, which included fuel and utilities expenses and professional fees, and a $1.3 million increase in revenue as a result of the initial 1.1 million barrels of our BORCO expansion becoming operational as of the beginning of the quarter, and the overall lease rate for the period remaining relatively flat.”

For the nine months, Buckeye added: “Adjusted EBITDA from the international operations segment was $95.8 million for the nine months ended September 30, 2012, which is an increase of $9.6 million, or 11.1 per cent, from $86.2 million for the corresponding period in 2011.

“The positive factors impacting Adjusted EBITDA were primarily related to a $5.1 million decrease in expenses, which included professional fees and payroll costs, a $2.8 million increase in revenue as a result of the initial 1.1 million barrels of our BORCO expansion becoming operational as of the beginning of the quarter, and an overall lease rate increase of 4.3 per cent.

“[There was a] $1.7 million decrease in income allocated to non-controlling interests, related to the remaining 20 per cent ownership interest in BORCO not acquired by us until February 16, 2011.”