Inter Pipeline’s storage segment Inter Terminals has reported strong third quarter results with funds from operations totalling $30.5 million, compared to $14.8 million in the same period last year. This year-over-year improvement was primarily the result of the newly acquired storage business in the United Kingdom and the Netherlands as well as additional storage contracts secured in Denmark.
Overall, the average storage utilisation rate during the third quarter improved materially to 92 per cent compared to 74 per cent for the same period a year ago.
Inter Pipeline announced in August that it is engaged in a structured process to explore the potential sale of this business. The process is on-going and there are no material updates at this time, it says.
Inter Pipeline’s funds from operations totalled $204 million in the third quarter. Net income for the quarter was $80 million. Meanwhile, total pipeline throughput averaged 1,367,400 barrels per day (b/d).
Construction of the Viking Connector, a new 75-kilometre pipeline for Inter Pipeline’s conventional pipelines business, began in July 2019 and progress at the $3.5 billion Heartland Petrochemical Complex site continues to track according to budgetary and schedule targets.