Enterprise Products Partners acknowledges rough first quarter
Texas-based energy company Enterprise Products Partners reported May 3 that Q1 profits were lower year-on-year but added it was optimistic about the expected recovery in demand.
Net income attributable to shareholders was $1.3bn during Q1, compared with $1.4bn during the same period last year. Net cash flow was unchanged y/y at $2bn. Total capital investments during Q1 were $682mn and the company said total spending for the year was targeted at $1.6bn. Total capital investments should be about half of that next year.
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CEO Jim Teague acknowledged that Q1 was a volatile period. A recovery in demand supported its natural gas business, though inclement weather in February took its toll, idling most of its assets in Texas.
“Our system was also impacted by lower volumes due to many of our producer, petrochemical and refinery customers experiencing disruptions both during and following the storms as repairs were made to freeze-damaged facilities,” he said.
Upstream activity, meanwhile, remains below pre-pandemic levels.
Total gas transportation volumes were about 1.5% below year-ago levels and crude oil volumes were 20% below Q1 2020.
Nevertheless, Teague said momentum was building as US vaccination campaigns pick up speed and the economy recovers from the 2020 doldrums.
“We continue to see stronger demand for crude oil, NGLs, primary petrochemicals and refined products as the United States and the rest of the world begin to unevenly emerge from COVID-related lockdowns, restart manufacturing facilities and as excess inventories of crude oil, NGLs and refined products are reduced,” he said.