Inter Pipeline Ltd. is reporting a third year of record net income in 2016, primarily thanks to its purchase of Williams Canada’s NGL business.
The company recorded annual net income of $478 million, up from milestones of $463 million in 2015 and $350 million in 2014 driven by strong oilsands transportation performance.
Funds from operations in NGL processing grew to $147.8 million, up 47 percent from $100.8 million in 2015.
Williams Canada’s NGL business, which Inter Pipeline secured for $1.35 billion in September, contributed approximately $27 million to the segment.
Williams’ oilsands offgas processing facilities also drove growth, contributing to a record $65 million of funds from operations for Inter Pipeline’s natural gas straddle plant segment. This is a $39.8 million, or 158 percent, increase over the same period in 2015.
“Strong, stable results” came from Inter Pipeline's oilsands transportation segment in 2016, the company said, including funds from operations reaching a record $581.6 million in 2016, compared to $569.1 million in 2015.
“The year-over-year improvement was primarily driven by incremental revenues associated with the expansion of the Kearl oilsands project and other increases in capital fee payments,” Inter Pipeline said.
Bitumen blend and diluent volumes averaged 1,095,900 b/d for the year, a five percent increase over 2015.
Inter Pipeline is also reporting record funds from operations in its conventional oil pipelines business segment of $198.6 million in 2016, up two percent from 2015.
“Strong financial performance from midstream marketing activities and steady volumes on the Mid-Saskatchewan pipeline system contributed to the positive results,” the company said.
In bulk liquids storage, funds from operations increased to $120 million in 2016, up from $100.8 million in 2015.
“The record results include the first full-year of operations from Inter Terminals Sweden and higher overall demand for storage services,” the company said.