17 February 2011 19:10 [Source: ICIS news]
HOUSTON (ICIS)--Enterprise Products expects that last week’s fire at its Mont Belvieu facility in southeast Texas will not significantly affect its first-quarter earnings or cash flow, a company executive said on Thursday.
During Enterprise's fourth-quarter earnings call, CEO Michael Creel said the company has not pinpointed the exact loss in revenue from the fire. However, the company does not see the event as significantly affecting first-quarter earnings before interest, tax, depreciation and amortisation (EBITDA).
Immediately following the incident, Enterprise said that operations were largely unaffected by the fire.
Creel said that workers and executives have focused on assisting state and local authorities in their investigations and on running all units at capacity.
In addition, Enterprise assured investors that the fire has not pushed back completion of its fifth fractionator at Mont Belvieu. The new unit is expected to be completed in early 2012 and would increase the facility’s fractionation capacity from 300,000 bbl/day to 375,000 bbl/day.
Enterprise has a $500bn (€370bn) insurance deductible for property damage and a similar deductible for interruptions to operations.
The fire occurred earlier in February on the west side of the facility at the old Dominion underground salt domes. A leak in a natural gas liquids (NGL) pipe is suspected as the cause of the fire. The blaze continued through the morning of 10 February, and one worker was killed.
($1 = €0.74)
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