CALGARY — Pembina Pipeline Corp. says its net profit dipped in the second quarter despite higher total revenues as elevated commodity prices drove up volumes on its pipeline systems and facilities.
The Calgary-based company says its net income was $254 million or 39 cents per share, down from $258 million or 40 cents per share a year earlier.
Total revenues for the three months ended June 30 increased 54 per cent to $1.95 billion from $1.27 billion. Net revenues rose 15.2 per cent to $894 million from $776 million in the second quarter of 2020.
Total volumes increased about two per cent to 3,500 mboe/d with pipeline volumes rising three per cent to 2,627 mboe/d due to higher interruptible volumes on Peace Pipeline and Cochin Pipeline as well as higher seasonal volumes on Alliance Pipeline.
These increases were offset by lower volumes on Vantage Pipeline and lower volumes on Ruby Pipeline due to contract expirations.
Pembina was expected to report 54 cents per share on $1.56 billion of revenues, according to financial data firm Refinitiv.
“We continue to see considerable positive momentum in our business including a second quarter highlighted by exciting developments charting Pembina’s future path,” the company said in its earnings release.
“A combination of rising volumes across many parts of our business, project reactivations, a more than $5 billion development portfolio of highly probable and highly economic growth projects, and a number of transformational announcements demonstrate that Pembina remains very well positioned.”
The company received a $350-million break fee on July 27 after it terminated its friendly $8.3-billion all-share deal for Inter Pipeline Ltd with Brookfield Infrastructure Partners LP securing board support for its $16-billion takeover offer.
This report by The Canadian Press was first published Aug. 6, 2021.
Companies in this story: (TSX:PPL)
The Canadian Press
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