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Shell Midstream Partners LP (NYSE:SHLX) Operating Income

: $217.0 Mil (TTM As of Jun. 2022)
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Shell Midstream Partners LP's Operating Income for the three months ended in Jun. 2022 was $59.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $217.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shell Midstream Partners LP's Operating Income for the three months ended in Jun. 2022 was $59.0 Mil. Shell Midstream Partners LP's Revenue for the three months ended in Jun. 2022 was $149.0 Mil. Therefore, Shell Midstream Partners LP's Operating Margin % for the quarter that ended in Jun. 2022 was 39.60%.

Shell Midstream Partners LP's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shell Midstream Partners LP's annualized ROC % for the quarter that ended in Jun. 2022 was 11.13%. Shell Midstream Partners LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 was 106.79%.


Shell Midstream Partners LP Operating Income Historical Data

The historical data trend for Shell Midstream Partners LP's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shell Midstream Partners LP Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Income
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 200.00 212.00 217.00 169.00 235.00

Shell Midstream Partners LP Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 65.00 49.00 54.00 55.00 59.00

Shell Midstream Partners LP Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $217.0 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Shell Midstream Partners LP  (NYSE:SHLX) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Shell Midstream Partners LP's annualized ROC % for the quarter that ended in Jun. 2022 is calculated as:

ROC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=236 * ( 1 - 0% )/( (2130 + 2109)/ 2 )
=236/2119.5
=11.13 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) data.

2. Joel Greenblatt's definition of Return on Capital:

Shell Midstream Partners LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2022 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2022 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2022  Q: Jun. 2022
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=692/( ( (643 + max(16, 0)) + (637 + max(-13, 0)) )/ 2 )
=692/( ( 659 + 637 )/ 2 )
=692/648
=106.79 %

where Working Capital is:

Working Capital(Q: Mar. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(62 + 27 + 17) - (50 + 40 + 0)
=16

Working Capital(Q: Jun. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(51 + 30 + 8) - (60 + 42 + 0)
=-13

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2022) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Shell Midstream Partners LP's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2022 )/Revenue (Q: Jun. 2022 )
=59/149
=39.60 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Shell Midstream Partners LP Operating Income Related Terms

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Shell Midstream Partners LP (NYSE:SHLX) Business Description

Shell Midstream Partners LP logo
Traded in Other Exchanges
N/A
Address
150 North Dairy Ashford Road, A0482-A, Houston, TX, USA, 77079
Shell Midstream Partners LP is a US-based limited partnership that is formed to own, operate, develop and acquire pipelines and other midstream assets. The company holds an interest in several entities which own crude oil, refined products and natural gas pipelines, and crude tank storage and terminal system. It provides a transportation and storage facility to deliver refined products from Gulf Coast markets to demand centers. The company earns revenue through the long-term transportation agreements by charging fees for the transportation of crude oil and refined products through its pipelines.
Executives
Sopc Holdings West Llc 10 percent owner 150 N. DAIRY ASHFORD RD., HOUSTON TX 77079
Fierro A Carlos director 910 LOUISIANA STREET, HOUSTON TX 77002
Gregory T. Mouras officer: Vice President, Operations P.O. BOX 61933, NEW ORLEANS LA 70161
Cynthia V. Hablinski director 150 N. DAIRY ASHFORD, HOUSTON TX 77079
Sean Guillory officer: Vice President, Commercial 150 N. DAIRY ASHFORD, HOUSTON TX 77079
David A. Connolly director 1000 MAIN STREET, LEVEL 12, HOUSTON TX 77002
Stanley Jesse C. H. officer: Vice President, Operations 150 N. DAIRY ASHFORD, HOUSTON TX 77079
Anne C. Anderson director 150 N. DAIRY ASHFORD, HOUSTON TX 77079
James J Bender director 1601 UTICA AVENUE SOUTH, SUITE 900, ST. LOUIS PARK MN 55416
Nick Arzymanow officer: Controller 150 N. DAIRY ASHFORD, HOUSTON TX 77079
Brenda Stout director 150 N. DAIRY ASHFORD ROAD, HOUSTON TX 77079
Curtis R Frasier director 910 LOUISIANA STREET, HOUSTON TX 77002
Steven Ledbetter officer: Vice President - Commercial 150 N. DAIRY ASHFORD ROAD, HOUSTON TX 77079
Marcel Teunissen director 150 N. DAIRY ASHFORD ROAD, HOUSTON TX 77079
Elaine Mccown officer: Controller ONE SHELL PLAZA, 910 LOUISIANA STREET, HOUSTON TX 77002