The Bahamas Oil Refining Company (BORCO) represented almost 93 percent of Buckeye Partners' revenue from international operations in the first six months of this year.
According to the U.S. company's financial report, the Grand Bahama facility generated $93.3 million in revenue for the six months ending June 30. That compares with $90.3 million from the year before. Buckeye Partners, listed on the New York Stock Exchange, operates one of the largest independent refined petroleum products pipeline systems in the U.S. It has 100 active terminals with a storage capacity of more than 69 million barrels.
Buckeye holds a liquid petroleum product terminal in both Puerto Rico and Grand Bahama, although the latter represents the lion's share of its international operations.
This segment now has an aggregate storage capacity of 27.2 million barrels, or well over one-third of the company's total storage, after just completing BORCO's 1.1 million barrel expansion.
The report revealed a total capital expenditure of $185 million for Buckeye's international operations, with BORCO featuring prominently in this category.
In addition to the barrel storage expansion, this expenditure includes repairs to the damaged jetty at the BORCO facility as a result of a ship collision in May.
"We believe the recovery of the costs to repair the damaged jetty is probable," the report stated.
The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from international operations was $63.3 million for the first six months, the company reported, which is an increase of $6.1 million.
"The increase in adjusted EBITDA was primarily related to a $1.6 million increase in storage fees, which includes a full period of operations for BORCO, $1.7 million of non-controlling interests income related to the remaining 20 percent in BORCO not acquired by us until February 16, 2011, and a $3 million net decrease in expenses primarily related to lower professional fees."
The report from Buckeye further underlines the Grand Bahama facility's key importance to the future of the company.
During a recent conference call with investors, top management at Buckeye revealed that BORCO's 4.7 million barrel expansion, expected to be completed next year, is 65 percent leased out.
Buckeye is anticipating rising demand for its services based on production coming online in Brazil and continuing demand for bulk cargos going to Asia.
The other side of the coin is the recently acquired Perth Amboy facility in New York Harbor, which the company purchased for $260 million. The acquisition included four million barrels of storage, four docks, and pipeline, rail and truck access.
It is expected to provide an essential conduit to its international operations in the Caribbean and beyond.

Click here to read more at The Nassau Guardian