Oiltanking Partners LP (FRA:4OT) Operating Income : €113.5 Mil (TTM As of Sep. 2014)

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What is Oiltanking Partners LP Operating Income?

Oiltanking Partners LP's Operating Income for the three months ended in Sep. 2014 was €29.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was €113.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Oiltanking Partners LP's Operating Income for the three months ended in Sep. 2014 was €29.2 Mil. Oiltanking Partners LP's Revenue for the three months ended in Sep. 2014 was €51.5 Mil. Therefore, Oiltanking Partners LP's Operating Margin % for the quarter that ended in Sep. 2014 was 56.62%.

Oiltanking 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. Oiltanking Partners LP's annualized ROC % for the quarter that ended in Sep. 2014 was 20.12%. Oiltanking Partners LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 was 21.19%.

Oiltanking Partners LP Operating Income Historical Data

The historical data trend for Oiltanking 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.

Oiltanking Partners LP Operating Income Chart

Oiltanking Partners LP Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Operating Income

29.78

43.59

39.70

49.30

91.62

Oiltanking Partners LP Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Operating Income	Get a 7-Day Free Trial											26.76	27.09	25.27	31.93	29.17

Oiltanking 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 Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €113.5 Mil.

Oiltanking Partners LP (FRA:4OT) Operating Income Explanation

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

Oiltanking Partners LP's annualized ROC % for the quarter that ended in Sep. 2014 is calculated as:

	ROC % (Q: Sep. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2014 )	+	Invested Capital (Q: Sep. 2014 ))	/ count )
=	116.696 * ( 1 - 0.94% )	/	( (524.593	+	624.247)	/ 2 )
=	115.5990576	/	574.42
=	20.12 %

where

	Invested Capital		(Q: Jun. 2014 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	562.331	-	30.016	-	( 7.722	-	max(0, 34.624	-	65.95	+	7.722	))
=	524.593

	Invested Capital		(Q: Sep. 2014 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	666.25	-	58.94	-	( 16.729	-	max(0, 65.829	-	48.892	+	16.729	))
=	624.247

Note: The Operating Income data used here is four times the quarterly (Sep. 2014) data.

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

Oiltanking Partners LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2014 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2014 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2014		Q: Sep. 2014
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	116.72	/	( ( (490.473 + max(-7.803, 0))	+	(611.161 + max(-34.726, 0)) )	/	2 )
=	116.72	/	( ( 490.473	+	611.161 )	/	2 )
=	116.72	/	550.817
=	21.19 %

where Working Capital is:

	Working Capital		(Q: Jun. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(21.975	+	0	+	3.006)	-	(30.016	+	2.769	+	-0.00099999999999767)
=	-7.803

	Working Capital		(Q: Sep. 2014 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(25.146	+	0	+	4.017)	-	(58.94	+	4.949	+	0)
=	-34.726

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2014) EBIT data.

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

Oiltanking Partners LP's Operating Margin % for the quarter that ended in Sep. 2014 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2014 )	/	Revenue (Q: Sep. 2014 )
	=	29.174	/	51.527
	=	56.62 %

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.

Oiltanking Partners LP Operating Income Related Terms

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Oiltanking Partners LP (FRA:4OT) Business Description

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Address

Website

http://www.oiltankingpartners.com

Oiltanking Partners LP is a Delaware limited partnership formed in March 2011. The Company engages in the terminaling, storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. Its terminal assets are strategically located along the upper Gulf Coast of the United States. At December 31, 2013, the Company had nearly 22 million barrels of total active storage capacity at its Houston and Beaumont facilities. These integrated facilities are strategically located and directly connected to 23 key refining, production and storage facilities along the Gulf Coast and the Cushing, Oklahoma storage interchange through dedicated and common carrier pipelines. In addition, its facilities provide its customers deep-water access and international distribution capabilities. The Company provides services to integrated oil companies, distributors, marketers and chemical and petrochemical companies, typically under long-term commercial agreements that include minimum volume commitments and inflation escalators. It operates as a third-party crude oil and refined petroleum products terminals on the Houston Ship Channel. It provides integrated terminaling, storage, pipeline and related services for third-party companies engaged in the production, distribution and marketing of crude oil, refined petroleum products and liquefied petroleum gas. The Company faces competition from a variety of international, national and regional energy companies, including large, diversified midstream partnerships, global terminal operators and large multi-national energy companies of varying sizes, financial resources and experience. The Company's operations are subject to stringent federal, state and local laws and regulations governing the release of materials into the environment, health and safety aspects of its operations, and otherwise relating to the protection of the environment. Compliance with these laws and regulations may require the acquisition of permits to conduct regulated activities; restrict the type, quantities and concentration of wastes or other pollutants that may be emitted, discharged or disposed into or onto to the land, air and water; apply specific health and safety criteria addressing worker protection; and impose liabilities for pollution from operations.

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