Inter Pipeline increased its funds from operations by $30.8 million in its third quarter 2018 financials, compared to the same period the previous year.
The company reports funds from operations of $299.7 million and says this is primarily driven by record performance in the NGL processing business, which continued to provide exceptional results from higher production volumes and increased frac-spread pricing.
Its bulk liquid business generated funds from operations of $14.8 million in the quarter, compared to $25.2 million in the third quarter 2017. Storage demand for certain petroleum products in Europe continued to be impacted by a backwardated commodity pricing environment.
As a result, average utilisation rates during the quarter dropped from 95% in 2017 to 74%, which was largely reflective of unfavourable market conditions in Denmark, where storage utilisation rates averaged 50% during the quarter, compared to 96% in the same period in 2017. Utilisation remained at 90% or better in Sweden, the UK and Germany.
Christina Bayle, Inter Pipeline’s president and CEO, says: ‘Inter Pipeline’s record results this quarter is proof of the company’s resilience despite the volatility in Western Canada’s commodity price.
‘Our oil sands and conventional pipeline assets provide stability in challenging times, while our NGL processing franchise positions us for significant cash flow growth from elevated North American gas liquids pricing.’