AltaGas Ltd. says strong earnings from Canada’s first propane export terminal commissioned earlier this year helped its results in the third quarter, but revenue fell due to asset sales and a Virginia regulator’s rejection of a natural gas utility rate increase.
The company, which has raised about $2.2 billion in asset sales over the past year, said revenue fell to $888 million from $1.04 billion in the same period of 2018.
The Calgary-based utility and midstream company says it earned $22 million or eight cents per share for the quarter ended Sept. 30 compared with a loss of $726 million or $2.78 per share a year ago.
On a normalized basis, AltaGas says it lost $58 million or 21 cents per share for the quarter compared with a loss of $17 million or seven cents per share a year ago. Normalized earnings before interest, taxes, depreciation and amortization came in at $178 million, versus $226 million in the third quarter of 2018.
Analysts had forecast a normalized net loss of $27 million on revenue of $1.026 billion and normalized EBITDA of $185 million, according to financial markets data firm Refinitiv.
During its first full quarter of operation, AltaGas reported its Ridley Island Propane Export Terminal on the B.C. coast generated $37 million in EBITDA. It says it received about 40,000 barrels of propane per day and filled two ships per month with liquefied propane destined for the Asian market.
“Building upon the momentum we achieved in our midstream business to-date, we will continue to leverage the structural advantage we have at (Ridley Island) to attract and handle more molecules in our integrated footprint,” said CEO Randy Crawford.
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