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Enterprise Q3 earnings rise

November 17/2020

MOSCOW (MRC) -- Enterprise Products’ Q3 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose slightly year on year, “despite another challenging quarter for the US energy industry” amid the ongoing coronavirus (Covid-19) pandemic, said th company.

The performance of the company’s marketing, storage, natural gas liquids (NGL) fractionation, NGL pipeline, petrochemical pipeline and Permian gathering and processing businesses largely offset the impact of lower margins, volumes and earnings from natural gas gathering and processing assets in the Rockies, South Texas and the Haynesville. Notably, Enterprise’s petrochemical services segment reported a USD124m sequential improvement in gross operating margin, from a challenging Q2, the company said.

Enterprise Products Partners L.P. EPD stock increased nearly 2% since the partnership reported third-quarter results on Oct 28, wherein earnings met estimates. It has narrowed 2020 growth capital investment projections, while reducing the budget for 2021 and 2022.

It reported third-quarter 2020 adjusted earnings per limited partner unit of 48 cents, in line with the Zacks Consensus Estimate. The bottom line, moreover, improved from the year-ago quarter’s 46 cents per unit.

Revenues declined to USD6,922 million from USD7,964.1 million in the prior-year quarter. However, the top line beat the consensus estimate of USD6,529 million.

Increased transportation volumes in Petrochemical & Refined Products Services, and higher fee-based volumes from the Permian Basin at the partnership’s gas processing plants aided the bottom line. The positives were partially offset by lower natural gas pipeline transportation volumes, and crude oil transportation and marine terminal volumes.

As MRC reported earlier, Enterprise Products Partners LP (EPP), through one of its affiliates, has entered a long-term agreement with Marubeni Corp. of Japan, under which Marubeni will offtake polymer-grade propylene (PGP) produced from a second propane dehydrogenation plant (PDH 2) currently under construction at EPP’s operations in Mont Belvieu, Tex., for supply to global customers. Concluded on June 16, the PGP offtake agreement is part of a long-term collaboration between EPP and Marubeni that also includes the export of liquefied ethylene, the first 25-million lb vessel of which loaded and sailed from EPP and Navigator Holdings Ltd.’s 50-50 joint venture marine terminal at Morgan’s Point, Tex., in early January, EPP and Marubeni said on June 30.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4%  year on year.

Enterprise Products Partners L.P. is an American midstream natural gas and crude oil pipeline company with headquarters in Houston, Texas. It acquired GulfTerra in September 2004. The company ranked No. 105 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, neftegaz, petrochemistry, Enterprise Products.
Category:General News
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