Plains All American reports 68% plunge in 2Q net income

 

Houston’s Plains All American Pipeline, L.P. reported a 68% drop in net income as it totaled $142 million in the second quarter of the year and delivered adjusted EBITDA of $524 million. Net income a year ago was $446 million and company write-downs reached more than $3 billion for the first half of the year.

The company’s net income on a per share basis went from 54 cents a year ago to 13 cents a share in the second quarter 2020….a 76% drop.

But the company also said it intends to reduce its 2020/2021 capex by $100 million or 6% to $1.45 billion.

“We delivered second-quarter results slightly favorable to our expectations and raised our guidance for the year,” stated Willie Chiang, Chairman and CEO of Plains. “— we announced a further $100 million reduction of our capital program, supplementing the significant capital reductions we announced in April. Despite meaningful uncertainty in the current environment, we are confident that we are taking the appropriate actions to position our business for the long-term.”

Net cash provided by the company’s operating activities were $84 million while a year ago, it totaled $431 million.

The company reported a write-down of $69 million during the quarter but the write-down for the first half of the year totaled $3.2 billion, representing a six-month net loss of $4.42 after tax per common unit.

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