31 January 2013 15:03 [Source: ICIS news]
HOUSTON (ICIS)--Enterprise Products' 2012 fourth-quarter net income fell 15% year on year and operating income fell 9.5%, partly because of lower natural gas liquids (NGL) prices and production in its marketing business, the US-based mid-stream services firm said on Thursday.
Fourth-quarter net income in 2011 benefited from $108m (€80m) in gains on asset sales, while the 2012 fourth quarter included $27m in asset impairment and similar charges, the company added.
“The fourth quarter of 2012 demonstrated the benefits of our investments in fee-based businesses serving the growing shale plays,” CEO Michael Creel said.
“We benefited from record volumes in our fee-based businesses attributable to production growth, primarily in the Eagle Ford and Haynesville shale plays, and from strong domestic and international demand for NGLs, particularly from the
As for its 2013 outlook,
“We also expect our natural gas processing margins will be lower in 2013 than 2012 due to lower ethane prices, and that our equity NGL production will be lower as our natural gas processing business continues to transition to a more fee-based business.”
“We expect the growth in our fee-based businesses will offset the potential decrease in gross operating margin from the commodity portion of our natural gas processing business,” he added.
($1 = €0.74)
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