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Pembina earns $664M for second quarter, Prince Rupert Watson Island project over budget

Pembina Pipeline Corporation reports second quarter results
Construction at Pembina’s Redwater Fractionation and Storage Facility. (Pembina Pipelines photo)

Pembina, the company building a liquefied petroleum gas (LPG) export terminal on Watson Island, released its second quarter results on Friday.

The Alberta-based company reported second quarter earnings of $664 million, a 170 per cent increase from last year, and a $661 million cash flow from operating activities, a 10 per cent increase from the 2018 second quarter results.

READ MORE: Pembina to begin construction on Watson Island

Pembina stated that the increase in earning can be attributed to tax savings from Bill 3, the Job Creation Tax Cut Act, which reduced the Alberta corporate tax rate from 12 to eight per cent over a four-year period.

They also stated their earnings were positively impacted by new assets placed into service, deferred variable revenue from the prior periods in the oil sands pipeline business, higher terminalling revenues among other things.

Their project in Prince Rupert is trending over their $250 million capital budget and is anticipated to be in-service mid-2020, subject to regulatory and environmental approvals, stated their release. In May, the company said that unforeseen renovations had increased the costs to $270 million.

Construction has begun on the foundation of the sphere, rail yard track and plant. The terminal will primarily source LPG from the company’s Redwater complex and see up to 25,000 barrels per day.

READ MORE:Pembina plans $20M dock repairs on Watson Island

READ MORE: Pembina to begin construction on Watson Island

Jenna Cocullo | Journalist
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