Altagas Ltd. mentioned it had a “robust” second quarter, reporting normalized EBITDA of CAD 295 million in comparison with CAD 239 million in the identical interval in 2023.
Altagas mentioned in an earnings launch that the quarter included “robust year-over-year development within the Midstream and Utilities companies, pushed by file international export volumes, robust price administration, and the advantage of current capital investments”.
The corporate’s Midstream phase reported normalized EBITDA of CAD 175 million for the quarter, in comparison with CAD 134 million within the second quarter of 2023. The most important drivers of the year-over-year enhance in Midstream normalized EBITDA included robust efficiency from the worldwide exports enterprise pushed by file volumes, stronger contributions from the fractionation and liquids dealing with enterprise, the addition of the Pipestone gasoline processing and storage belongings, and the absence of wildfire impacts that have been current within the second quarter of final yr, Altagas mentioned.
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AltaGas famous that it exported a file of 123,285 barrels per day (bpd) of liquified petroleum gases (LPGs) to Asia within the quarter, a seven p.c year-over-year enhance.
“We’re happy with our robust second quarter outcomes, which mirror the power of working companies and the structural tailwinds behind them. Efficiency within the quarter was modestly forward of our expectations and positions AltaGas nicely to ship on our 2024 steering,” Altagas President and CEO Vern Yu mentioned. “As we glance forward we are going to proceed to execute on our strategic priorities of reducing the enterprise danger profile, executing on our natural development initiatives and sustainably rising our earnings and money flows”.
“Midstream efficiency was robust within the second quarter, together with file international export volumes. These volumes spotlight the power of our export enterprise. Efficiency throughout the opposite elements of the Midstream phase have been additionally robust with gasoline processing volumes up six p.c, fractionation and liquids dealing with volumes up 14 p.c, and extraction volumes up 32 p.c on a year-over-year foundation,” Yu continued.
In Could, AltaGas and Royal Vopak made a optimistic closing funding choice (FID) on the Ridley Island Power Export Facility (REEF), a large-scale liquefied petroleum gasoline (LPG) and bulk liquids terminal with rail, logistics and marine infrastructure on Ridley Island, British Columbia in Canada.
REEF shall be developed on a 190-acre (77-hectare) website adjoining to AltaGas’ and Vopak’s current Ridley Island Propane Export Terminal (RIPET), on lands administered by the Port of Prince Rupert (PRPA).
“We proceed to deal with de-risking our Midstream operations to generate secure and predictable outcomes. This consists of just lately finalizing long-term agreements for an extra 18 p.c of REEF’s Part I throughput capability. We proceed to have superior tolling negotiations with a number of counterparties for greater than one hundred pc of REEF’s preliminary capability. These agreements construct on AltaGas’ beforehand introduced success in securing 56 p.c of our anticipated export volumes beneath tolling agreements, which began within the second quarter of 2024,” Yu mentioned.
“We’re enthusiastic about AltaGas’ long-term outlook and the worth that may be created by means of persevering with to execute on our strategic plan. We stay very optimistic on the macro fundamentals for pure gasoline, pure gasoline liquids (NGLs) and the outlook for each our companies. We proceed to make important progress optimizing and increasing our Midstream enterprise, together with filling remaining latent capability, whereas developing the REEF and Pipestone II initiatives that help our subsequent section of development. We additionally proceed to make giant investments in our Utilities to satisfy our prospects’ long-term wants and be sure that we’re positioned to ship the crucial vitality required to maintain society transferring ahead,” he concluded.
To contact the creator, e-mail rocky.teodoro@rigzone.com
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