Monday, 3 February 2014

NuStar to sell 50% interest in asphalt joint venture, sees write-downs

  • NuStar Energy (NS +0.5%) says it will divest its 50% interest in an asphalt joint venture to partner Lindsay Goldberg, preferring to focus on its storage and pipeline operations.

  • NS also expects to post ~$400M in asset write-downs and other items for Q4 due to factors including underperformance at some facilities, and now anticipates an overall Q4 loss of $4.75/unit.

  • NS says the sale means its earnings “will no longer be burdened by the volatility and significant losses generated by the asphalt joint venture.”

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