CALGARY — Inter Pipeline Fund (TSX:IPL.UN) reported Thursday net earnings of $46.6 million in the third quarter, down from a year-ago $51.9 million, and announced an increase to its dividend on an optimistic outlook.
The income trust, which operates major oil and gas pipelines, reported its profit amounted to 18 cents per unit, compared with 21 cents per unit in the prior-year period.
Revenues rose to $231.7 million from $224.5 million on higher volume through pipeline system and the fund increased its monthly distributions half a cent to eight cents per unit.
“The distribution increase announced today is evidence of our extremely positive outlook for the business,” president and CEO David Fesyk said in a statement.
“We continue to generate strong financial results and Inter Pipeline’s payout ratio is currently among the lowest of our energy infrastructure peers.”
Funds from operations totalled $77.2 million, down $14.2 million from the third quarter and impacted by a non-routine pension plan contribution related to Inter Pipeline’s bulk liquid storage business segment of $4.1 million.
Units of the fund were up 30 cents or two per cent at $14.01 in afternoon trading on the Toronto Stock Exchange.