Kinder Morgan Canada stumbles in its first earnings release
Kinder Morgan Canada Limited (KML) reported their first quarterly results this week, after going public in late March. Revenues in the Canadian subsidiary declined 2% y/y to $168.7 million while profits were cut in half to just $25.1 million.
The shortfall was blamed on currency fluctuations, higher operating costs on the Conchin condensate pipeline and a 21% decline in volumes shipped on the Puget Sound Pipeline, which delivers crude from the existing Trans Mountain line to refineries in Washington State. The company says those volumes were diverted to other destinations in BC but provided no further details.
KML has secured a US$4 billion revolving construction credit facility to fund the Trans Mountain Expansion and an additional US$500 million in working capital. The $7.4 billion project is expected to start construction in September and should be completed by the end of 2019. Remaining cash spend at the end of June was reported at $6.1 billion.
KML President Ian Anderson says he looks forward to working with BC's new NDP government to complete the project.
Kinder Morgan Canada includes the Trans Mountain Pipeline and related terminals assets, the Puget Sound and Jet Fuel Pipeline systems, the Canadian portion of the Cochin Pipeline system, the Vancouver Wharves Terminal and the North 40 Terminal, as well as the jointly-owned Edmonton Rail Terminal, the Alberta Crude Terminal and the Base Line Terminal.
The board also approved a quarterly dividend of $0.1625 per share, payable to KML shareholders.