Magellan Midstream Partners Lp (MMP) has reported 2.89 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $207.12 million, or $0.91 a share in the quarter, compared with $213.29 million, or $0.93 a share for the same period last year.     

Revenue during the quarter dropped 6.81 percent to $573.05 million from $614.92 million in the previous year period. Gross margin for the quarter expanded 378 basis points over the previous year period to 54.53 percent. Total expenses were 57.01 percent of quarterly revenues, down from 57.95 percent for the same period last year. This has led to an improvement of 94 basis points in operating margin to 42.99 percent.

Operating income for the quarter was $246.38 million, compared with $258.58 million in the previous year period.

"Magellan finished 2016 on a strong note, generating record quarterly and annual distributable cash flow, increasing annual cash distributions to our investors by 10% and maintaining our solid, investment-grade balance sheet," said Michael Mears, chief executive officer. “We expect the favorable momentum of 2016 to continue with another record year projected for 2017 as we benefit from recent expansion projects and continued strong demand within all of our business segments."