New From PetroChem Wire . . . .
PetroChem Wire and Genscape have partnered to create NGLs Week, a comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.
For more information,
Enterprise 1Q profit up 2.9% on record NGL transport, export volumes
HOUSTON, April 28, 2016 (PCW) -– Enterprise Products Partners on Thursday reported its 1Q net income at $670 million, up about 2.9% from $651 million in 1Q 2015.
“Our results were driven by increases in gross operating margin attributable to record NGL pipeline and LPG export volumes, the EFS Midstream acquisition, and newly constructed assets that largely offset lower earnings from our commodity and spread sensitive businesses, the sale of our offshore business and lower volumes on certain crude oil and natural gas pipelines,” the company said.
Results for the company’s various segments are as follows:
Petrochemicals & refined products
Gross operating margin was $155 million, lower than the $175 million in 1Q 2015. The propylene business saw gross operating margin of $52 million, also lower than the $64 million seen in 1Q 2015.
Propylene fractionation volumes were 69,000 b/d during the quarter, compared to 74,000 b/d for the same quarter of 2015.
Total refined products and petrochemical marine terminal loading and unloading volumes increased 7% percent to 347,000 b/d in 1Q, compared to 324,000 b/d in 1Q 2015.
Gross operating margin for EPD’s octane enhancement and high-purity isobutylene business decreased $11 million to a net loss of $10 million, primarily due to lower sales margins and volumes. The partnership’s octane enhancement facility was out of service for extended periods during the first quarters of 2016 and 2015 for major maintenance, the company said. Total plant production volumes were 10,000 b/d, compared to 8,000 b/d in 1Q 2015.
Gross operating margin for Enterprise’s butane isomerization and related operations increased to $16 million from $7 million in 1Q 2015, primarily due to higher volumes. Butane isomerization volumes increased 77% to 110,000 b/d from 62,000 b/d in 1Q 2015.
NGL pipelines & services
Gross operating margin increased 13% to $784 million in 1Q 2016, compared to $695 million in 1Q 2015.
Gross operating margin from the NGL pipelines and storage business increased $98 million, or 30%, to $427 million. There was a 313,000 b/d increase in NGL transportation volumes from EPD’s various systems.
EPD’s LPG import/export terminal on the Houston Ship Channel and related pipeline reported a $34 million increase in gross operating margin for the first quarter of 2016 compared to the first quarter of 2015 primarily due to a 197,000 b/d increase in export loading volumes.
The loading capacity of the LPG export terminal increased from 7.5 million to 9 million barrels per month in April 2015, and further to 16 million barrels per month in January 2016.
NGL pipeline transportation volumes were a record 3 million b/d in 1Q 2016, compared to 2.4 million b/d in 1Q 2015. EPD’s total NGL marine terminal loading and unloading volumes were a record 456,000 b/d in 1Q 2016 compared to 263,000 b/din 1Q 2015.
Enterprise’s NGL fractionation business reported gross operating margin of $123 million for 1Q 2016, compared to $127 million a year ago, largely due to lower revenues from product blending and other fees at EPD’s Mont Belvieu fractionators.
Total fractionation volumes increased 5% percent to 836,000 b/d from 798,000 b/d in 1Q 2015.
-- Samantha Hartke