Buckeye sells assets as Caribbean struggles: Update
Buckeye Partners will sell some US pipelines and terminals and its interest in the Vitol-backed marine terminal businesses VTTI as its Caribbean segregated storage operations struggled.
The company will sell its 50pc interest in VTTI to Vitol and global funds manager IFM Investors for $975mn, roughly two years after it acquired its share of the global storage operation. Buckeye will separately sell for $450mn jet fuel pipelines supplying Florida, Nevada, California and Tennessee airports and refined product terminals in northern California.
Deep losses in Buckeye's global marine terminals businesses overwhelmed stable results in the company's domestic pipelines and terminals operations during the third quarter. Segregated storage, particularly in the Caribbean, continued to struggle in the quarter, chief executive Clark Smith said. Buckeye had disclosed a review of its assets and operations in an August quarterly earnings call.
But the company saw its tank business turning around as more capacity shifted from crude to refined products and feedstocks. Its Caribbean assets participated in Mexican gasoline demand and saw nascent interest in residual oil and distillate storage ahead of marine fuel specifications in 2020, Buckeye president of global marine terminals Khalid Muslih said.
"I think as we look at the portfolio we do see growing demand for services, but again, where I think we see some weakness continues to be around crude oil," Muslih said.
Buckeye will sell its Florida jet fuel pipeline connecting Port Everglades to the Fort Lauderdale and Miami airports. The company will also sell pipelines and terminals supplying the Reno, Nevada; San Diego, California and Memphis, Tennessee airports, and refined products terminals in Sacramento and Stockton, California.
The company will continue to operate the facilities under a management contract with the new owner.
Buckeye disclosed its planned $1.15bn purchase of 50pc of VTTI in October 2016 and closed on the deal the following January. VTTI at the time operated 54mn bl of storage in Europe, the UAE, Singapore and the US.
Buckeye reported a $745.8mn loss for the quarter, including a $537mn impairment on its Caribbean assets and a $300mn non-cash loss on the sale to VTTI.
source: Argus Media
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
