How Inter Pipeline Ltd Gained a $1.90 Billion in Sales Revenue
The energy infrastructure industry is one of the most lucrative markets in the world. Especially with smart investment and efficient management, a company's sales revenue has all the potential to skyrocket.
Inter Pipeline Ltd. is among the business firms enjoying a productive and profitable sales revenue with their world-scale energy structure services. In this blog post, you'll learn more about Inter Pipeline, a flourishing business well-known for its quality service, and discover effective ways to earn more than a billion in sales revenue.
Meet Inter Pipeline Ltd.
Inter Pipeline Ltd. is a Canada-based power infrastructure business specializing in transporting, processing, and storing numerous energy commodities, primarily across first-world states in Western Canada and Europe. With a vision of creating innovative Canadian energy infrastructure, it exhibits a solid commitment to sustainable power practices while still maintaining a high-performing standard of Environmental, Social, and Governance (ESG) actions.
Last year, Brookfield Infrastructures, one of the biggest owners and operators of many compelling global infrastructure networks, announced its complete acquisition of the Inter Pipeline. Hence, this 2022 the energy corporation is now more recognized as Brookfield's Inter Pipeline, boosting an adept management team that can secure its investors of risk-adjusted returns.
Inter Pipeline offers its customers and stakeholders a comprehensive and diversified asset portfolio of energy infrastructure services grouped into four business operation segments: Transportation, Facilities Infrastructure, Marketing, and New Ventures. This impressive set of power field structures ensures lasting and foreseeable cash flows for the company's future revenue.
Four distinct Inter Pipeline operation segments
The transportation segment that Inter Pipeline provides contains oil sands, traditional oil pipelines, and bulk liquid storage terminals. It operates seven pipeline systems, collecting petroleum products from Alberta and Saskatchewan producing sites to deliver them at Hardisty and Edmonton, Alberta market hubs.
On the other hand, oil sands include the Cold Lake, Corridor, and Polaris systems that also come with transportation services according to the cost-of-service and fee-based contracts. The Cold Lake pipeline system is known for being the largest shipper of Cold Lake area bitumen production. The Corridor pipeline system brings bitumen supply service for the Athabasca Oil Sands Project (AOSP).
Meanwhile, Inter Pipeline's Polaris Inc. is famous for delivering a diluent pipeline system from the Edmonton area to several Alberta areas. Named Inter Terminals Nordics, Inter Pipeline carries out its bulk liquid storage station in Denmark and Sweden.
2. Facilities Infrastructure
Regarding Facilities Infrastructure, Inter Pipeline owns and runs assets that yield natural gas liquids (NGL), offgas, and petrochemical products and services. Through the sole Cochrane straddle plant it supports, Inter Pipeline provides NGL and offgas fractionation along with other incorporated offgas businesses, including the Redwater Olefinic Fractionator, Pioneer I, and Pioneer II processing infrastructures.
These facilities generate improved EBITDA following the fee-based and cost-of-service plans and sell commodity-based products to the marketing segment of its assets to indicate fixed service fees.
Inter Pipeline's marketing division is responsible for the logistics and selling of products, excluding goods produced under fee-based or cost-of-service agreements. This segment also handles the market planning of service pipelines and facilities to optimize every opportunity actively. On top of that, efforts to carry out commodity risk management activities are made under this segment section as well.
4. New Ventures
Lastly, the New Ventures segment of Inter Pipeline focuses on developing large-scale project innovations that can add a new stream of cash flow for the renowned energy infrastructure company. The team is busily advancing North America's first integrated PDH and PP production facility, the Inter Pipeline's Heartland Petrochemical Complex. It's a groundbreaking power structure that can emanate the lowest GHG-emitting plant.
Productive years of Inter Pipeline
With its groundbreaking billion success, you can already picture how busy the past year and months were for them just to reach the top. Let's look at Inter Pipeline's remarkable route to prosperity, from its small accomplishments to monumental achievements.
- New year, new management ways: Effective January 1, 2021, the start of the year for Inter Pipeline was bold as it underwent a reorganization of its business segments and financial reporting structure.
- EBITDA adjustments: With Inter Pipeline's EBITDA adjusted, it has observed over the same 2020 cycle a whopping 5% increase or precisely $278 million. Meanwhile, with marketing business generated, modification of EBITDA has resulted in a $74 million revenue, all thanks to the steady volume and enhanced commodity price environment.
- Increased operation funds and net income: The operational funds of Inter Pipeline have seen a 15% growth compared to the same period in 2020, with an overall total of $239 million. Moreover, its quarterly net income has enjoyed a 43% boost, gaining about $128 million.
- Start of strategic process planning: the past year also ignites talks about comprehensively reviewing Inter Pipeline's strategic process to augment shareholder value.
- The succession of Margaret McKenzie as Inter Pipeline's Chair of the Board of Directors
- The grand transition of HPC to a global-scale operating facility: Inter Pipeline's recent massive venture, the Heartland Petrochemical to Complex (HPC) project, starts developing from standard energy infrastructure construction to a world-scale operating facility. It will soon embark on commissioning and start-up activities as well.
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