Gibson Energy expands footprint at Hardisty Storage Terminal
In its third quarter earnings release this week, midstream-player Gibson Energy announced the commissioning of 500,000 barrels of new storage capacity at the Hardisty terminal.
So far this year, Gibson commissioned 300,000 barrels of new storage at Edmonton, 1.5 million barrels at Hardisty East and 900,000 barrels at Hardisty West. Gibson's total capacity at Hardisty has balloned to 8.9 million barrels. The company says most of the added capacity came in ahead of schedule and below budget.
Gibson also signed on to a new long term contract for the construction of two new 400,000 barrel storage tanks at its Edmonton Terminal. The new tanks will be in service by Q2/2018.
Q3 BY THE NUMBERS
Strong results from its energy infrastructure business helped lift third quarter EBITDA to $62.6 million, down from $95.1 million in Q3/2015 but a 41% improvement from the previous quarter:
- Revenues declined 10% to $1.21 billion in Q3/2016.
- Net losses contracted to $32.9 million.
- Capital expenditures were $65 million in the third quarter of 2016, roughly $60 million of which were spent on expansions at the Edmonton and Hardisty tank farms.
The Calgary-based company also has an oilfield waste and water management division and is currently the second largest industrial propane distributor in the country. However, a majority of Gibson's profits now come from its infrastructure business, which is expected to see continued growth in the coming years.
Gibson has also put its propane division up for sale but has yet to announce a buyer.