Blueknight Energy Partners L.P. (BKEPP) has reported 22.31 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $13.97 million, or $0.21 a share in the quarter, compared with $11.42 million, or $0.13 a share for the same period last year.     

Revenue during the quarter went up marginally by 0.59 percent to $47.22 million from $46.94 million in the previous year period. Gross margin for the quarter contracted 578 basis points over the previous year period to 32.91 percent. Total expenses were 63.97 percent of quarterly revenues, down from 71.46 percent for the same period last year. This has led to an improvement of 748 basis points in operating margin to 36.03 percent.

Operating income for the quarter was $17.01 million, compared with $13.40 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $25.89 million compared with $22.86 million in the prior year period. At the same time, adjusted EBITDA margin improved 615 basis points in the quarter to 54.84 percent from 48.69 percent in the last year period.  

Comments from BKEP chief executive officer Mark Hurley:"We were extremely pleased with our third quarter results. Operating margin, excluding depreciation and amortization increased 16% to $25.8 million for the three months ended September 30, 2016, as compared to $22.3 million for the same quarter in 2015. Adjusted EBITDA and distributable cash flow would have also reflected significant year over year increases if not for approximately $8.3 million of income associated with settlement of litigation that impacted comparable periods in 2015. The increase in operating margin was driven by our asphalt terminalling services segment, which recorded a 23% increase in operating margin due to the acquisition completed earlier in the year, contract escalations and stable customer throughputs. Our crude oil related segments performed in line with the prior year in spite of continuing difficulties in the crude oil production industry."