Full-Year Net Income Up 24% at Plains All American Pipeline
Plains All American Pipeline reported fourth-quarter and full-year earnings after the market close Wednesday. For the quarter, the partnership reported a 3% drop in net income and EBITDA. On the year, both metrics posted sizable gains, as net income climbed 24% over 2012's number, while EBITDA grew 11% on a year-over-year basis.
The decline in the fourth-quarter numbers was driven by the partnership's supply and logistics segment, where adjusted segment profit declined 22% in the fourth quarter. Despite the drop-off, the figure slightly exceeded management's midpoint guidance for the quarter. In other words, they knew this was likely, given the abnormal success of the segment in 2012.
On a positive note, the fourth-quarter adjusted segment profit for the transportation segment grew 8%, and 20% in the facilities segment.
Looking ahead, management expects aggregate adjusted segment profit for the transportation and facilities segments to increase 15% in 2014, while the supply and logistics segment returns to a baseline performance. The partnership also expects to deliver 10% growth for its distribution this year, while maintaining full coverage. Plains' fourth-quarter distribution was $0.6150 per unit, a 9.3% increase year over year.
Plains All American's fourth-quarter earnings call will take place at 11 a.m. ET on Thursday, Feb. 6. Interested investors can tune in here.
The article Full-Year Net Income Up 24% at Plains All American Pipeline originally appeared on Fool.com.Aimee Duffy and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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