Plains All American Pipeline LP said revenue fell 40.5% as the
master-limited partnership said it has a "cautious" near-term
outlook.
The company expects high inventory levels will restrain
production levels over the next six to 12 months, but said "over
the intermediate to long-term, we remain very constructive on the
outlook for the North American crude oil industry."
For the quarter ended June 30, net income fell to $124 million
from $287 million. The loss per limited partner unit was six cents,
compared with earnings of 45 cents per unit a year earlier.
Excluding items, earnings per unit fell to 27 cents from 50
cents.
Revenue fell to $6.66 billion from $11.195 billion.
Analysts polled by Thomson Reuters projected earnings of 29
cents per unit on revenue of $7.52 billion.
A California pipeline owned by Plains All American ruptured in
May, causing an oil spill near Santa Barbara, Calif. The company
said Tuesday that its 2015 guidance assumes the pipeline won't
return to service this year. As a result, it reduced the midpoint
of its outlook for adjusted earnings before interest, taxes,
depreciation and amortization by $50 million, to $2.275
billion.
The company said adjusted segment profit increased at its
transportation and facilities operations, but declined in the
supply and logistics segment.
Write to Josh Beckerman at josh.beckerman@wsj.com
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