Inter Pipeline’s bulk liquid storage segment reported strong financials in the third quarter due to its newly acquired storage business in the UK and Netherlands & additional storage contracts in Denmark.
The segment generated strong funds from operations of $30.5 million in the quarter, compared to $14.8 million in the third quarter of 2018.
Average storage utilisation rates during the third quarter improved to 92% compared to 74% for the same period in 2018.
The company says that the process to explore the potential sale of Inter Terminals is ongoing and that there are no material updates. It says that should a sale be completed, potential proceeds would be used to reduce debt and finance on its capital expenditure programme, including the Heartland Petrochemical Complex.
Overall Inter Pipeline generated funds from operations of $204.4 million in the third quarter compared to $299.7 million in the third quarter of 2018.
Christian Bayle, Inter Pipeline’s president and CEO, says: ‘Our oil sands transportation business continued to deliver strong, stable results, and we saw significantly improved results from our European storage operations.
‘However, as expected, our quarterly cash flows were impacted by planned large-scale turnaround activities at three of our NGL processing facilities, as well as, depressed frac-spread pricing.’