Kinder Morgan second-quarter revenue misses on lower prices
5:27 pm Wednesday, July 19th, 2023
(Reuters) -Pipeline and terminal operator Kinder Morgan on Wednesday posted lower-than-expected second-quarter revenue, hurt by lower commodity prices.
Oil and gas prices came under pressure during the April-June quarter as rising interest rates in key economies and a slower-than-expected manufacturing and consumption recovery in China dented fuel demand.
Energy output has yet not reached pre-pandemic levels as companies have kept a tight rein on production, also pressuring pipeline operators’ transport volumes.
Kinder Morgan faced lower commodity prices, higher interest expense in the second quarter as well as higher sustaining capital expenditures versus the prior year period, President Kim Dang said.
The Houston-based company said earnings from its products pipelines fell about 4.3% to $286 million, while earnings from the transportation of CO2 fell about 17.4% to $175 million, due to lower realized prices.
Kinder Morgan’s revenue fell about 32% to $3.50 billion in the quarter, and missed estimates of $4.55 billion, according to Refinitiv data.
On an adjusted basis, the company earned 24 cents per share, in line with estimates.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Vinay Dwivedi and Shounak Dasgupta)
