The corporate logo of Pembina Pipeline Corp. (TSX:PPL) is shown. THE CANADIAN PRESS/HO

Pembina Q2 revenues climb on elevated commodity prices while profit dips

Pembina Q2 revenues climb on elevated commodity prices while profit dips

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

CALGARY — Inter Pipeline Ltd. says its net profit more than doubled in its latest quarter as revenues increased 30 per cent.

The Calgary-based pipeline firm reported after markets closed Thursday that it earned $145.5 million or 34 cents per share in the second quarter, up from $62.5 million or 15 cents per share a year earlier.

Revenues for the three months ended June 30 were $702.9 million, up from $539.5 million in the year-ago period.

Inter Pipeline was expected to earn 22 cents per share on $542.4 million of revenues, according to financial data firm Refinitiv.

President and CEO Christian Bayle said it delivered another strong quarter with stable results despite the challenges of having to deal with competing bids by Pembina Pipeline Corp. and Brookfield Infrastructure Partners LP.

Inter Pipeline’s board is recommending shareholders accept a $16-billion takeover offer by Brookfield, which revised its offer to $19.75 per share. The offer expires on Friday.

“I wish to take this opportunity to sincerely thank the Inter Pipeline team for their unwavering focus on advancing our business priorities despite the disruption and uncertainty of an extended corporate strategic review and likely sale of the company,” he stated in a news release.

Pembina terminated its own rival offer nearly two months after Inter Pipeline entered into a friendly $8.3-billion all-share deal with Pembina equal to $19.45 per share.

Inter Pipeline paid Pembina a termination fee of $350 million on July 27.

This report by The Canadian Press was first published Aug. 6, 2021.

Companies in this story: (TSX:IPL)

The Canadian Press

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