Pembina Pipeline reports higher Q3 profit amid elevated propane demand in Asia

Pembina Pipeline Corp. reported a higher profit for Q3 amid elevated propane demand in Asia. The company benefited from strong propane prices in Asian markets, driven by rising global demand and geopolitical supply concerns. Pembina CEO Scott Burrows attributed the outperformance to the company's exposure to premium propane prices in Asian markets through West Coast exports, which provided a significant uplift for the quarter.

Cameron Goldade, Pembina's CFO, emphasized the company's diversified market access, including its Prince Rupert Terminal in Asia and a wider network for shipping NGLs (natural gas liquids) throughout North America. Burrows also expressed optimism about the Western Canadian Sedimentary Basin, highlighting expanding market access, growing energy demand, and infrastructure investment as key factors for potential growth across all hydrocarbons.

The Calgary-based company reported a profit of $570 million for Q3, up from $286 million a year earlier. On a per share basis, earnings amounted to 92 cents, compared to 43 cents during the prior-year quarter. Pembina's revenue for the period reached $2.18 billion, an increase from $1.79 billion the previous year. The company has a growing backlog of projects, including the proposed Pacific Link crude oil pipeline, which could move about one million barrels per day if developed.

Pembina has an economic interest of 10% in the project through construction, with the potential for an additional 10% when commercial operation begins.