We’re half-way through the year, and income investors are still having trouble gaining traction, despite the Bank of Canada rate cut in early June.
Quarterly adjusted EBITDA set a record at $1.044-billion, up from $947-million the year before. The company attributed the improvement to higher revenues and profits on the Peace Pipeline system, the reactivation of the Nipisi Pipeline, and a higher contribution from Alliance Pipeline related to higher tolls on seasonal contracts.
In conjunction with the acquisition closing, Pembina updated its 2024 adjusted EBITDA guidance range to $4.05-$4.30-billion . Relative to the previous guidance range, the revised outlook for 2024 primarily reflects the incremental contribution from increased ownership of Alliance and Aux Sable, as well as a stronger outlook in the marketing business.
Net income was $40-million, a $48-million, or 54 per cent, decrease over the first quarter of 2023. This was due to the impact of unrealized gains and losses on financial instruments, higher finance and executive transition costs, as well as depreciation and amortization expenses.The company increased its quarterly dividend by 2 cents a share to 41 cents , effective last March.