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NuStar invests in Europe
SHADES OF GRAYS
UK • NUSTAR’S SUPPORT FOR ITS EUROPEAN OPERATIONS IS LEADING TO INVESTMENT IN ITS UK TERMINAL NETWORK AND BETTER SERVICE TO ITS CUSTOMER BASE
NUSTAR ENERGY HAS completed the first phase of a £25m investment project at its terminal in Grays, UK. A new jetty, capable of handling tankers of up to 125,000 dwt, received its first vessel on 4 January; a second jetty is due for completion early in the second quarter. NuStar says the new marine loading arms and additional shipping lines will ensure efficient discharge.
In addition, four new road loading gantries have been commissioned, with another one
INVESTMENT AT GRAYS PROMISES MORE EFFICIENT
SUPPLY FOR INDEPENDENT FUEL DISTRIBUTORS being added in the second phase. On completion, the terminal will have seven retail and five separate commercial loading bays.
“This upgrade is a strategic investment for NuStar on the Thames and it will provide significant growth potential,” says David McLoughlin, vice-president and general manager of NuStar’s European operations. “Independent supply in the south-east of England is critical to the competitiveness of the region and our clients have been fully supportive of this investment, which will enable the terminal to receive larger cargoes at a significantly faster rate than previously possible.”
The Grays terminal is well located, close to London’s M25 orbital motorway, helping to minimise freight costs. It is one of six facilities in the UK operated by NuStar, which is headquartered in San Antonio, Texas and has an 81-strong network of terminals across the US, Canada, Mexico, the Caribbean and the Netherlands, as well as the UK, with an aggregate storage capacity of more than 96m bbl (15.3m m3).
A PLACE IN THE WORLD While NuStar’s terminals in the North America support the developing business of moving shale oil and products around the region, those in the UK are largely designed to support independent fuel distributors, a sector that is only likely to become more significant in the future. NuStar’s head office is, McLoughlin says, highly supportive of that business and is continuing to invest, regarding its European holdings as a long-term position.
NuStar Energy’s 2017 financial results revealed full-year revenues of $1.81bn, up 3.3 per cent on the 2016 figure of $1.76bn. Net income slipped slightly, from $150.0m to $148.0m.
NuStar’s storage terminal operations recorded a 1.1 per cent rise in revenues to $617.0m and a 2.2 per cent increase in operating profit to $219.4m. Much of the increase can be ascribed to the Martin terminal acquisition in December 2016.
NuStar has also announced plans to merge NuStar Energy and NuStar GP Holdings, in an effort to streamline the financial structure in response to changing conditions in the MLP markets. The merger is expected to take effect in the second quarter. “As evidenced by these earnings results, the simplification and [distribution] reset are needed to allow NuStar to compete with the growing number of our peers who have already made such structural adjustments,” says Brad Barron, president and CEO of the partnership. “We are confident that the combination of the simplification and the reset will provide us with the financial strength and flexibility to compete for good projects and position us to increase unitholder value, as we have in the past, and for many years to come.” HCB nustarenergy.com