01 August 2012 12:28 [Source: ICIS news]
LONDON (ICIS)--Enterprise Products' second-quarter 2012 net profit was 26% higher at $567.2m ($459.4m) on higher volumes and margins despite lower revenues from the sale of natural gas, oil, petrochemicals and refined products, the US pipeline company said on Wednesday.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were up 15% at $1.05bn on a higher gross operating margin. Attributable net income was 31% higher at $566m.
Enterprise said that its total crude oil, refined products and petrochemical pipeline volumes were up 3% in the second quarter at 4.0m bbl/day. Total natural gas liquids (NGL) pipeline volumes were up 14% at a record 14,700m Btus/day and NGL fractionation volumes up 20% to a record 654,000bbl/day.
“Enterprise reported strong results for the second quarter of 2012 with four of our five business segments posting higher gross operating margin than the second quarter of last year,” Enterprise president and CEO Michael Creel said.
The operating margin increases and improved hedging results has more than offset the effects of lower NGL and natural gas prices, he added.
“During the second quarter of 2012, the US petrochemical industry had an extended period of planned and unplanned plant turnarounds, which led to lower demand and prices for ethane. Most of these maintenance activities were completed in early July. We estimate that demand for ethane is currently running in excess of 1m bbl/day, and we have seen ethane prices strengthen accordingly,” said Creel.
Enterprise is on schedule to complete construction and begin commercial operations on approximately $3bn of growth projects in 2012, most associated with the Eagle Ford Shale development in South Texas, he added.
($1 = €0.81)
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