Shell Midstream's Revenue Slides During Active Storm Season
NEW YORK, Oct 30 (Reuters) - Shell Midstream Partners' revenue in the third quarter took a $10 million hit during the U.S. Gulf of Mexico storm season and is expected cause further financial damage through the end of the year, company executives said on Friday.
Revenue decreased to $110 million in the three months to Sept. 30, down $10 million from the previous three months, largely due to a series of destructive storms that have forced multiple rounds of oil production shut-ins, Shell Midstream said on an earnings call.
Offshore oil pipeline volumes continued to slip, falling to 1.83 million barrels per day (bpd) in the third quarter compared to 2.02 million bpd the previous three months, the Houston-based affiliate of Royal Dutch Shell said.
"We continue to live through an unprecedented time with the pandemic as well as one of the most active hurricane seasons that I can remember and certainly since 2005," said Kevin Nichols, Shell Midstream's chief executive officer. "These combined events have impacted our communities, our staff, customers and our investors."
The company's 2020 capital expenditures have been chopped back by $21 million compared to its original estimates as the coronavirus pandemic slashes global fuel demand.
In the fourth financial quarter, Shell Midstream expects an additional $15 million hit to its net income and cash available for distribution by Hurricanes Delta and Zeta as well as planned maintenance.
Eight named storms have entered the U.S. Gulf this year, some turning into violent hurricanes. Despite storm volatility, executives of the company said they plan to focus on Gulf of Mexico oil production and continue to pursue an expansion of its 163-mile (262-km) Mars crude oil pipeline system.
The system currently transports up to 600,000 barrels per day from the Mississippi Canyon-area production platforms in the U.S. Gulf of Mexico to storage caverns in Clovelly, Louisiana.
Related News
Related News
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- 208-Mile Mississippi-to-Alabama Gas Pipeline Moves Into FERC Review
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Kinder Morgan Gas Volumes Climb as Power, LNG Demand Boost Pipeline Business
Comments