Shell Midstream Partners, L.P (SHLX) has reported 21.93 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $69.50 million in the quarter, compared with $57 million for the same period last year.

Revenue during the quarter dropped 10.64 percent to $75.60 million from $84.60 million in the previous year period. Gross margin for the quarter contracted 262 basis points over the previous year period to 75.40 percent. Total expenses were 45.24 percent of quarterly revenues, up from 40.54 percent for the same period last year. That has resulted in a contraction of 469 basis points in operating margin to 54.76 percent.

Operating income for the quarter was $41.40 million, compared with $50.30 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $87.40 million compared with $96.50 million in the prior year period.

"Executing our strategy and continuing to grow our business has provided for strong fourth quarter results as well as for a strong 2016. The recent third-party acquisition of three offshore pipelines is a great example of an opportunity that enhanced our portfolio and directly supported our strategy," said John Hollowell, chief executive officer of Shell Midstream Partners. "As we look to 2017, we will continue to diversify our portfolio and further highlight the depth of growth opportunities across the Royal Dutch Shell portfolio in North America."