The favourable effect of the contango market has resulted in substantially higher utilisation rates for Inter Pipeline in the first quarter of 2015, the company has reported.
While generated funds from operations were down by less than a million dollar to $20.5 million (€18.2 million) compared to $21.6 million (€19.2 million) in the first quarter of 2014, utilisation rates averaged 90% compared to 78%.
The first quarter 2014 results benefited from various one-time revenues that were not repeated in 2015.
The company credited the stronger market conditions for its improved utilisation rates.
‘Utilisation was favourably impacted by stronger contango pricing relationships in certain petroleum futures markets,’ it says in a statement.
‘The stronger market conditions particularly benefit our Danish operations where utilisation rates averaged 92% in the first quarter of 2015 compared to 69% in the same period of 2014.’
Overall the transportation and storage company generated record funds from operations of $177 million – an increase of 34% from the same period the previous year.
During the period, Inter Pipelines initiated a 400,000 barrel crude oil storage expansion project at the Kerrobert Terminal on the Mid-Sakatchewan pipeline system.
It also completed a restructuring of its European bulk liquid storage operations within the first quarter of 2015. The entire business has been rebranded as Inter Terminals.