Inter Pipeline earns $38.7-million in Q3 2020 Inter Pipeline Ltd. has released its financial and operating results for the three and nine months ended Sept. 30, 2020.
Third Quarter Highlights
Funds from operations (FFO) totalled $196 million
Net income for the quarter was $39 million
Declared cash dividends of $52 million or $0.12 per share
Quarterly payout ratio* of 26 percent
Total pipeline throughput averaged 1,222,000 barrels per day (b/d)
Entered agreement to divest the majority of European storage business for approximately $715 million
Announced acquisition of Milk River pipeline system in exchange for Empress II and V straddle plants
Heartland Petrochemical Complex site construction continued to track according to the revised schedule and cost estimate
Heartland Petrochemical Complex
In the third quarter of 2020, construction at the Heartland Petrochemical Complex continued to remain on track, with an expected in-service date of early 2022. Approximately 3,000 workers are on site each day, protected by rigorous health and safety protocols.
Work that has been completed in the quarter included the final design, grading, ballasting and laying of track for HPC's rail operations. Inter Pipeline expects to connect the Heartland facility track to Canadian Pacific's mainline in early 2021. In addition, the polypropylene facility had the Complex's pelletizer and extruder equipment installed.
Third quarter 2020 investment into the project was $176.3 million, bringing the total project spend since inception to approximately $2.9 billion.
The process to secure a partner to purchase a material interest in the Heartland Petrochemical Complex is ongoing and is expected to conclude in the first half of 2021. While there can be no certainty that a definitive agreement will be reached, a partner would benefit from joining a well-developed, world-scale petrochemical project that has substantial commercial advantages.