Feb 6 Plains All American Pipeline LP
reported on Tuesday a quarterly profit that nearly halved,
largely due to a 23.3 percent jump in costs.
The company, one of the top U.S. transporters of oil and
gas, said total revenue rose about 19 percent to $5.95 billion
in the fourth-quarter ended Dec. 31.
The results come when North American pipeline operators are
back on investors' radar after U.S. President Donald Trump
revived growth prospects in a sector that struggled to cope with
a two-year oil price slump and strident opposition from
environmental and Native American activists.
Plains has been expanding its oil transportation and
gathering facilities, striking two deals last month to expand in
the Permian Basin, the top U.S. oil field.
"We are encouraged by the significant increase in drilling
and completion activities in the Permian Basin observed over the
latter half of 2016 and continuing into 2017," Chief Executive
Greg Armstrong said in a statement.
Revenue in its supply and logistics business, the company's
biggest division, rose 20.4 percent to $5.67 billion in the
The unit moved 1.25 million bpd (barrels per day) in the
quarter, up from 1.17 million bpd a year earlier.
However, the Houston-based company's net income fell to $126
million, or 14 cents per share, from $247 million, or 24 cents
per share, a year earlier.
Up to Tuesday's close, the company's shares had gained about
58 percent in the past 12 months.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj