09.11.15. Inter Pipeline’s bulk liquid storage division generated record funds from operations of $29 million in the third quarter of 2015, compared with $19.8 million in the same quarter of 2014.
This 46 percent increase was largely due to improved utilisation rates, as well as the cash flow contribution from Inter Terminals Sweden which was acquired in June this year.
Overall utilisation rates in the third quarter remained high, averaging 93 percent, compared with 78 percent a year earlier. Stronger contango pricing in certain petroleum product futures markets continue to drive higher utilisation rates particularly in Inter Terminal’s Danish operations, the group reported.
Inter Pipeline’s oil sands transport operations also generated record results. Funds from operations increased 77 percent for the third quarter to $146.1 million, representing a gain of approximately $64 million over Q3 2014 results.
The increase resulted from key expansions on the Cold Lake and Polaris pipeline systems which entered service in 2015. Over the course of the year, Inter Pipeline has completed new connections to the FCCL Foster Creek and Christina Lake oil sands projects and the Athabasca Oil Corporation Hangingstone project. A capacity expansion of the Polaris pipeline was also completed to support the second phase of the Kearl oil sands operated by an affiliate of Imperial Oil.