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."

Comments (4)
  • breastdoc
    , contributor
    Comments (52) | Send Message
    It is about time they got rid of the asphalt business! It has been a very negative for the company & never should have been bought by management. They can now focus on their profitable core business
    3 Feb 2014, 11:58 AM Reply Like
  • breastdoc
    , contributor
    Comments (52) | Send Message
    It is about time they sold the asphalt business . It was a huge mistake for management to have bought the asphalt business which has been a drag on their profits & now they can concentrate on their core business
    3 Feb 2014, 12:03 PM Reply Like
  • wharfrat
    , contributor
    Comments (2) | Send Message
    Management could not have timed their entry into the asphalt business to be a bigger disaster. I am very happy to see them exit this venture so they may concentrate on the transportation and storage business, and hopefully return to stability and profitability.
    3 Feb 2014, 01:23 PM Reply Like
  • toomuchgas
    , contributor
    Comments (1046) | Send Message
    Hopefully, most of the $4.75 loss is from write-downs not from operations.
    3 Feb 2014, 02:55 PM Reply Like
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