- Gibson Energy (GEI) has revealed its June quarter revenue fell more than C$1 billion against last year’s corresponding results
- Despite the revenue drop, the company managed to increase its profit for the quarter from $34.69 million in profit last year to $41.31 million this year
- The company attributed the profits to the resilience of its infrastructure segment, which performed well despite the
- Quarterly revenue fell to $794.47 million, compared to $1.927 billion in the June quarter of 2019
- Gibson Energy (GEI) is up 3.8 per cent and is trading at $23.78 per share
Gibson Energy (GEI) has revealed its June quarter revenue fell more than C$1 billion against last year’s corresponding results.
The huge hit to revenue however did not result in a proportionate drop in profitability, as the company had a higher net income result this year versus last year. The net income for the quarter was $41.31 million, up from $34.69 million last year.
The company put the profitability for the quarter down to the resilience of its infrastructure business segment, which saw profitability improve for the quarter.
The company’s adjusted EBTIDA for the year was up from $93.55 million last year to $142.76 million this year.
Gibson’s infrastructure business segment made a profit of $90 million for the quarter, which was a $17 million or 18 per cent increase on last year.
The company put this down to additional tankage services at its Hardisty site, along as the expansion of the HURC facility and the Moose Jaw storage facility.
As oil prices cratered during there quarter, demand for physical oil storage spots heated up between energy producers, leaving Gibson sitting pretty.
The President and CEO of Gibson Energy Steve Spaulding said the company had delivered strong operational and financial results in what was a very challenging quarter for the industry.
He put this down to the resilient nature of our infrastructure segments and that much of the company’s cash flow comes from contracted projects that aren’t particularly affected by the headwinds of global economic uncertainty.
“Reflective of our commitment to maintain a very strong financial position both leverage and payout are well below target levels, our capital program is fully funded, and we have access to significant liquidity,” he said.
Gibson Energy (GEI) is up 3.8 per cent and is trading at $23.78 per share at 3:00 pm EDT.