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Enterprise’s 4Q net up 1.9%; petchems segment hit by outage, lower prices
HOUSTON, January 28, 2016 (PCW) –- Enterprise Products Partners on Thursday reported fourth-quarter net income of $694 million, up 1.9% from the $681 million reported in 4Q 2014.
Enterprise attributed the bump to results from its fee-based businesses, contributions from newly constructed assets and the acquisitions of Oiltanking Partners and EFS Midstream, which offset the effect of lower NGL prices and foregone earnings due to the sale of offshore assets.
From an operations standpoint, CEO Jim Teague said its ethane export terminal on the Houston Ship Channel will be operational in the third quarter. Its greenfield PDH plant is still looking at beginning commissioning activities by year’s end.
Its LPG export terminal on the Ship Channel just recently inked a seven-year agreement with an Asian customer and is now fully subscribed through 2019.
Meanwhile, an unplanned outage at its 1.21 billion lb/yr (550,000 mt/yr) MTBE facility at Mont Belvieu in mid-November negatively impacted Enterprise’s petrochemicals and refined products segment’s earnings by about $20 million. Teague said Enterprise took the downtime to bring forward the plant’s annual maintenance. The MTBE unit is expected to return to service in mid-February, Teague said.
Its petrochemical and refined products segment was the only sector that did not show a year-over-year- increase. The group’s results in the quarter are as follows:
Gross operating margin: $177 million, down 14% from the $199 million reported in the year-ago period.
Total transported volumes were up to 804,000 b/d, an increase of 1.3% from 794,000 b/d in 4Q 2015.
The propylene business’ gross operating margin for 4Q was $44 million, down 38% from $71 million during the same time a year ago. The decrease was primarily due to lower sales margins and volumes. Propylene fractionation volumes were 71,000 b/d in 4Q 2015, compared to 81,000 b/d in 4Q 2014.
The octane enhancement and high-purity isobutylene business decreased $10 million to $18 million in the quarter primarily due to lower sales margins and volumes.
Enterprise’s butane isomerization operations increased to $21 million during the quarter from $9 million in 4Q 2014, primarily due to higher volumes and lower maintenance expenses. Butane isomerization volumes increased 28% percent to 115,000 b/d.—Samantha Hartke