Magellan second-quarter results tighten

The COVID-19-caused demand reduction for refined products impacted Magellan Mid stream Partners' second quarter bottom line, the company reported this week.

In a release issued Thursday before markets opened, t he company reported it earned a second-quarter net income of $133.8 million, or 59 cents per unit, on revenues of $460.4 million.

The company had earned a net income of $253.7 million, or $1.11 per unit, on revenues of $701.7 million the same time a year ago.

“Magellan del ivered results against the backdrop of a challenging environment for our industry and our nation that exceeded our expectations for the quarter,” said Michael Mears, its CEO.

As for the future,

Magellan officials stated the company doesn't yet have a clear picture of where demand for refined products is headed.

Currently, it predicts that volumes of refined products it handles the remainder of the year will be relatively flat when compared to the final six months of 2019.

Due to recent commodity price improvements, Magellan stated it expects to see some profits from its gas liquids activities during the final half of the year.

Including actual results so far in 2020, the company estimates it will earn an annual net income of between $3.50 and $3.70 per unit.

“Our resilient business model and strong financial position allow us to confidently manage through current challenges while remaining focused on executing our long-term strategy to maximize value for Magellan' s investors,” Mears said.