Inter Terminals has recorded a drop in funds from operations as a result of a backwardated environment for some petroleum products in Europe.
Inter Pipeline’s bulk liquid storage segment generated funds from operations of $18.7 million in the first quarter of 2018, compared to $26.2 million in the first quarter of 2017.
It attributed this to slowing storage demand for certain petroleum products in Europe due to a backwardated commodity pricing environment.
As a result, average storage utilisation rates during this 2018 quarter were 82% compared to 99% for the same period a year ago. Subsequent to the quarter, several new storage contracts started, and utilisation rates improved to 87% in April.
Overall, Inter Pipeline recorded a 3% increase in funds from operations compared to the first quarter 2017. Record total pipeline throughput volumes averaged 1,488,400 barrels per day.