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Energy

Genesis Energy expects up to $50 million in losses due to storms: CEO

NEW YORK (Reuters) - Genesis Energy LP GEL.N said it expects to lose as much as $50 million this year due to a battery of storms that hit the U.S. Gulf of Mexico and forced lengthy offshore oil and gas production shut-ins, Chief Executive Grant Sims told investors on Thursday.

In a typical year, storms would cost the company about $8 to $10 million, he said.

The Houston offshore pipeline operator’s oil and gas pipeline volumes fell as hurricanes Marco and Laura tore through the central Gulf of Mexico region and halted roughly two weeks of production in the three months ended Sept. 30, Sims said.

Hurricanes Delta and Zeta caused another 15 days of disruption to Genesis Energy’s pipeline systems in the current quarter, adding to expenses, Sims said.

Genesis is still working to get its 380-mile (610-km) Cameron Highway Oil Pipeline System (CHOPS) back to normal after the hurricanes caused structural damage to a platform within the system.

Crude oil shipped on CHOPS, which is delivered to the Texas coast and sold as Southern Green Canyon WTM-SGC, is being rerouted and delivered into the Poseidon pipeline system or the Auger pipeline, while the damage is investigated.

Genesis Energy’s quarterly revenues were $443.1 million in the three months ended Sept. 30, compared to $621.7 million for the same period last year.

Reporting by Laila Kearney; Editing by Bernadette Baum

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