Funds from Inter Pipeline’s bulk liquid storage segment declined in the second quarter of 2017 as a result of lower throughput and unfavourable foreign exchange rates.
The segment generated funds from operations of $25.3 million in the second quarter of 2017, a decrease from $29.6 million in the same period in 2016.
The company says that while utilisation rates were at 98%, compared to 97% in the same period last year, a decrease in throughput activity and the unfavourable foreign exchange rates contributed to lower funds from operations.
In June, the company commissioned 175,000 barrels of new chemical storage capacity at the Seal Sands terminal in the UK, comprising of five tanks. These tanks are supported by long-term contracts.
Overall, the company’s funds from operations increased by 5% over the second quarter of 2016 to $207 million.