Boston, MA 05/13/2014 (wallstreetpr) – Pembina Pipeline Corp (NYSE:PBA) intends to offer growth across the hydrocarbon value chain either through new facilities or expansion of pipelines. The Company showed the growth performance in its recent quarter of 2014.
Higher volumes drive revenue and operating profit
In the first quarter 2014, Pembina Pipeline Corp (NYSE:PBA)’s net revenue increased by 42% to $447 million (1Q2013: $315 million) due to strong performance across all businesses. During the quarter, Pembina’s total volume increased to 1,654 mbpd with new facilities (Saturn I Facility) and expansion of Phase I Conventional and Nipisi pipelines. The Phase I Expansion increased the crude oil and condensate capacity by 40 mbpd and NGL capacity by 52 mbpd. Strong propane market in North America drove the Midstream business significantly.
The significant increase in Pembina’s asset base improved the gross margin as well as operating margins. In 1Q2014, gross profit was up by 48% to $302 million (1Q2013: $204 million) and operating profit increased by 46% to $350 million (1Q2013: $240 million).
The improved results in Pembina Pipeline Corp (NYSE:PBA)’s businesses and returns from new facility and expansions drove the Company’s EBITDA to $316 million from $211 million same period last year. Consequently, it offset higher interest expenses and income tax and improved the earnings to $0.44 per share compared to $0.30 per share in 1Q2013.
Strong balance sheet support cash generation
Operating cash flow (adjusted) during the period was $264 million, up by 31% as a result of improved operating activities and decrease in working capital and improved raised the operating cash flow (adjusted) to $264 million. During the quarter, the Company spent $287 million to improve its growth infrastructures such as pipeline expansion and a new facility for volume growth.
As of March 31, 2014, Pembina has net cash balance of $153 million and total borrowings of ~$2.2 billion to finance its operation in the near to medium term.
Pembina Pipeline Corp (NYSE:PBA) is one of Canada’s largest energy infrastructure providers and is well positioned with highly diversified integrated asset base to provide long-term growth opportunities.
