Energy operator blames decrease on lower gross profit in midstream business.
CALGARY — Pembina Pipeline Corp. is increasing its dividend more than 5% despite seeing revenue and profits reduced in the first quarter in the face of sharply lower oil prices.
The Calgary-based pipeline operator and midstream service provided said net income fell to $120 million in the three months ended March 31. That was down from $147 million in the comparable year-earlier period.
Revenue fell to $1.154 billion from $1.759 billion.
Pembina said the decrease in consolidated revenue was largely due to lower gross profit in its midstream business “due to significantly lower commodity prices.”
That was partially offset by higher gross profit in conventional pipelines, gas services and the oil sands and heavy oil businesses, along with lower net finance costs and income tax.
Meanwhile, Pembina said its board had approved a 5.2% increase in its monthly common share dividend to 15.25 cents from 14.5 cents, payable June 15 to shareholders of record on May 25.
© 2015 The Canadian Press