Energia
Pembina Pipeline Corporation Reports Record First Quarter Results in 2018
The first quarter of 2018 saw the continuation of the strong financial and operating results we experienced last year following the completion of a multi-year growth program and the Veresen Acquisition. 2018 will be the first full year Pembina benefits from these transformational changes to the Company.
The first quarter generated record results in revenue volumes, net revenue, adjusted cash flow from operating activities, operating margin and Adjusted EBITDA. Based on a strong start to the year, Pembina maintains its outlook for 2018 Adjusted EBITDA of $2.55 to $2.75 billion .
The previously announced open season for the Alliance Pipeline Ltd. ("Alliance") expansion and the announcement today of our Phase VI pipeline expansion are two exciting new additions to Pembina's portfolio of growth projects. This portfolio already includes our Phase IV and V Peace Pipeline expansions, a west coast propane export facility, the proposed Jordan Cove LNG Project, the proposed polypropylene production facility, Veresen Midstream's North Central Liquids Hub and the Duvernay infrastructure development. As well, we continue to evaluate a steady stream of customer-driven development opportunities to grow the business even further.
"We've seen another great start to a new year with Pembina once again setting record quarterly results," said Mr. Dilger, Pembina's President and Chief Executive Officer. "Amidst a backdrop of political and economic uncertainty within Canada and abroad, Pembina remains focused on delivering exceptional financial and operational results, growing the business and building out our value-chain to provide our customers with enhanced market access."
"With the ongoing strength we are seeing in the business, we were also pleased to have announced a 5.6 percent dividend increase, which marks our seventh consecutive year of increasing the dividend," added Scott Burrows , Pembina's Senior Vice President and Chief Financial Officer.
Finally, this quarter saw the implementation of a new organizational structure that reflects the fact that Pembina is an increasingly larger and more diverse company. Accordingly, the Company's financial reporting format has also changed to better align with the new structure. Mr. Dilger commented, "When we considered the future needs of both the Company and the energy industry, it was clear to us that this evolution would best position us for continued success."
Given the enhanced scale and scope of Pembina's business and considering the future needs of both the Company and the energy industry, Pembina's management structure was reorganized, effective January 1, 2018 , into three Divisions: Pipelines, Facilities and Marketing & New Ventures ("Corporate Reorganization"). Accordingly, the Company's financial reporting format has changed to better align with the new structure.
Pembina also adopted IFRS 15 Revenue from Contracts with Customers retrospectively, effective January 1, 2018 . While this change is not currently expected to have a material impact on annual revenue recognition, it is expected to result in a change in timing for quarterly revenue recognition with lower revenue in the first and second quarters and higher revenue in the third and fourth quarters. For the quarter ending March 31, 2018 , $30 million of revenue which would have been recognized in the quarter under previous accounting principles has been deferred as a result of the adoption of the new standard and $1 million was recognized in 2018 that under previous accounting policies would have been recognized in 2017.
Financial results reported for all periods commencing on or after January 1, 2017 have been restated to reflect the Corporate Reorganization and adoption of IFRS 15.
Pembina will host a conference call on Friday, May 4, 2018 at 8:00 a.m. MT ( 10:00 a.m. ET ) for interested investors, analysts, brokers and media representatives to discuss details related to the first quarter 2018 results. The conference call dial-in numbers for Canada and the U.S. are 647-427-7450 or 888-231-8191. A recording of the conference call will be available for replay until May 11, 2018 at 11:59 p.m. ET . To access the replay, please dial either 416-849-0833 or 855-859-2056 and enter the password 9280599.
A live webcast of the conference call can be accessed on Pembina's website at pembina.com under Investor Centre, Presentation & Events, or by entering:
http://event.on24.com/r.htm?e=1586740&s=1&k=47B62FC50195DAE9E9D4355E0648F355 in your web browser. Shortly after the call, an audio archive will be posted on the website for a minimum of 90 days.
The Company will hold its annual general meeting of shareholders ("AGM") on Friday, May 4, 2018 at 2:00 p.m. MT ( 4:00 p.m. ET ) at the Telus Convention Centre.
A live webcast of Pembina's AGM presentation can be accessed on Pembina's website at www.pembina.com under Investor Centre, Presentation & Events, or by entering:
https://event.on24.com/wcc/r/1586872/3974AF1920923BF05B61AB4F622A26B8 in your web browser.
Participants are recommended to register for the webcast at least 10 minutes before the presentation start time.
Pembina will host an Investor Day on Tuesday, May 29, 2018 at the Fairmont Royal York Hotel in Toronto, Ontario . For parties interested in attending the event, please email investor-relations@pembina.com to request an invitation.
Three months ending March 31, 2018
Financial results reported for all periods commencing on or after January 1, 2017 have been restated to reflect the Corporate Reorganization and adoption of IFRS 15.
Investments in Equity Accounted Investees include:
Pipelines Division
Facilities Division
Marketing & New Ventures Division
(unaudited)
Calgary -based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America's energy industry for over 60 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. The Company also owns gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina's service offering even further along the hydrocarbon value chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canada Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world.
Pembina strives to provide sustainable, industry-leading total returns for our investors; reliable and value-added services for our customers; a net positive impact to communities; and a safe, respectful, collaborative and fair work culture for our employees.
Pembina's strategy is to:
Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.
Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.
For further information:
Investor Relations, Cameron Goldade , Vice President Capital Markets, (403) 231-3156, 1-855-880-7404, E-mail: investor-relations@pembina.com, www.pembina.com