Inter Pipeline’s bulk liquid storage segment has surged by more than 50% in the first quarter of 2016.
The company reports that the segment generated record funds from operations of $31.3 million in the first quarter of 2016 – a 53% increase over the first quarter of 2015.
The acquisition of Inter Terminals Sweden as well as higher utilisation rates across the business were behind the significant increase.
Utilisation rates averaged 98% compared to 90% in 2015. The Danish operations reached 100% utilisation for the quarter as demand for contango storage continues to drive positive results.
Work was also substantially completed on the construction of six storage tanks in Germany, costing $9 million. This additional capacity produces 57,000 barrels of chemical storage, with the majority of the new tankage now contracted to BASF under multi-year agreements.