The acquisition of four storage terminals from Royal Vopak along with the completion of two significant pipeline projects has contributed to Inter Pipeline’s record financial results.
The bulk liquid storage operator recorded funds from operations in the second quarter of 2015 totalling $181 million (€165 million), an increase of $49.4 million (€44 million) compared to the second quarter of 2014.
Of this, the company’s bulk liquid storage sector generated $20.6 million.
As previously reported, in June the company completed the acquisition of four petroleum and petrochemical storage terminals in Sweden from a subsidiary of Koninklijke Vopak. This acquisition swelled Inter Pipeline’s total storage capacity in Europe by 40% to around 27 million barrels.
The company says that the acquisition is highly complementary to Inter Pipeline’s existing storage operations in Denmark, the UK, Germany and Ireland.
The company is now the largest independent bulk liquid storage provider in Scandinavia. The terminals are now called Inter Terminals Sweden.
Elsewhere in the company’s bulk liquid storage segment, operations funds increased to $20.6 million from $18.2 million in the same quarter the previous year. The increase is due to higher utilisation rates in Denmark and the inclusion of Inter Terminals Sweden. Utilisation rates were also substantially higher, averaging 93% compared to 75%.
The company says: ‘European storage operations benefited from stronger contango pricing relationships in the future markets for several petroleum products. This was particularly evident at Inter Terminals Denmark where utilisation averaged 95%, up 30% from the same period in 2014.’