Kinder Morgan options for Canadian branch delayed due to ‘complexity’

The company hopes to announce its next steps in coming weeks

A sign warning of an underground petroleum pipeline is seen on a fence at Kinder Morgan’s facility where work is being conducted in preparation for the expansion of the Trans Mountain Pipeline, in Burnaby, B.C., on April 9, 2018. Kinder Morgan Canada Ltd. says it is continuing to evaluate its strategic options and hopes to announce its next steps in coming weeks. The company was spun off from its American parent in mid-2017 to raise money to build the Trans Mountain pipeline expansion but that purpose no longer exists after it sold the existing pipeline and its expansion project to the federal government for $4.5 billion last summer. THE CANADIAN PRESS/Darryl Dyck

Kinder Morgan Canada Ltd. says it is continuing to evaluate its strategic options and hopes to announce its next steps in coming weeks.

The company was spun off from its American parent in mid-2017 to raise money to build the Trans Mountain pipeline expansion but that purpose no longer exists after it sold the existing pipeline and its expansion project to the federal government for $4.5 billion last summer.

READ MORE: B.C. braces for another round of pipeline battle with Alberta’s Jason Kenney

Chief financial officer Dax Sanders says in a news release the options being evaluated include continuing as a standalone enterprise, a disposition by sale and a strategic combination with another company.

He says the process, which analysts had expected to be complete by now, is taking longer than anticipated due to the “complexity” of the situation.

The company reported net income of $21.3 million on revenue of $102 million in the three months ended March 30, compared with $44.4 million on $88.6 million revenue in the same period a year earlier.

It reported adjusted earnings rose 21 per cent in its terminal operations thanks to storage capacity additions and higher rates, while its pipelines segment’s adjusted earnings rose 63 per cent due to reduced costs on its Cochin condensate import pipeline.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alberta confirms 29 new COVID-19 cases

Of the total 6,955 confirmed cases, 652 are active

No increase in property taxes for Sylvan Lake residents

Town Council passes the 2020 Tax Bylaw at Monday’s council meeting

PHOTOS: Sylvan Lake teachers say hello to students at drive through

Ecole Mother Teresa School arranged a drive through for families to say hello to their teachers

Sylvan Lake Community Partners seeking donations

Community Partners is still open and ready to help, says Jen Baliant

Facing changes together: Your community, your journalists

Sylvan Lake News is firmly committed to seeing you through the changes ahead, but we need your help

Facing changes together: Your community, your journalists

Sylvan Lake News is firmly committed to seeing you through the changes ahead, but we need your help

Opposition parties call on Liberals to restore human-trafficking victims fund

Opposition parties call on Liberals to restore human-trafficking victims fund

‘Antigone’ wins five trophies, including best picture, at Canadian Screen Awards

‘Antigone’ wins five trophies, including best picture, at Canadian Screen Awards

When could a COVID-19 vaccine be ready?

When could a COVID-19 vaccine be ready?

Cancer, coronavirus are a dangerous mix, new studies find

Cancer, coronavirus are a dangerous mix, new studies find

CFL commissioner Ambrosie asks The Spring League CEO for partnership proposal

CFL commissioner Ambrosie asks The Spring League CEO for partnership proposal

Hockey Canada cancels summer camps, going virtual with training camps

Hockey Canada cancels summer camps, going virtual with training camps

NHL awards regular-season trophies for season cut short

NHL awards regular-season trophies for season cut short

Most Read