The third-quarter net income was still down from the $69.4 million generated in the same three months last year. The third quarter of 2008, however, benefited from usually high product margins, officials said.

Once those product margins and other accounting implications are excluded, Magellan actually gained more profit this quarter than same time last year.

“”Magellan continues to benefit from higher results from our core transportation and terminals assets even during the current challenging economic environment,” Magellan CEO Don Wellendorf said in a company statement.

“Record quarterly gasoline shipments and record results from our terminals segment, driven in part from expansion projects, have helped to offset the negative impact of lower commodity prices and lower diesel fuel shipments this year.”

Gasoline shipments set a new quarterly record and were 7 percent higher than 2008’s third quarter, even excluding the negative impact of last year’s Hurricane Ike.

Magellan’s pipeline and terminal assets move refined petroleum products from the Gulf Coast up through the U.S.

Tuesday’s earnings report also was the first since the two previous Magellan entities became one in a capital simplification. Unitholders voted in September to dissolve three-year-old Magellan Midstream Holdings LP and merge it into Midstream Partners in exchange for a swap of stock.

Overall, Magellan Midstream Partners totaled $94.1 million in operating margin from its pipeline system and $27.7 million from its terminals segment, according to the report. The ammonia pipelines lost $3.4 million.
Magellan officials said that the company plans to spend about $510 million on growth capital projects. One new project is building additional storage at the Galena Park, Texas, marine terminal, while Magellan also bought the 700-mile Longhorn pipeline system earlier this year.