2014 highlights
"I'm very happy to report that 2014 was another record year for Pembina and the most successful year in the history of our Company," said Mick Dilger, Pembina's President and Chief Executive Officer.
"Driven by strong operational performance, we achieved record operating margin, which increased nearly 14% over 2013. We also reached an all-time high for cash flow from operating activities, which grew almost 17% and 10% on a per share basis in 2014 compared to 2013 as well as for EBITDA, which increased by almost 11% over the prior year."
"Another 2014 achievement that I'm particularly proud of is our safety record. Pembina had a full year of zero lost time injuries and zero recordable employee injuries, despite employees having worked 24% more hours than in 2013," added Mick. "This is an extraordinary accomplishment and evidence of our commitment to achieving safe, reliable and responsible operations - an effort that is clearly paying off."
Other highlights from 2014 included: continuing to progress Pembina's US$5.8 billion of committed capital growth projects while keeping the overall portfolio tracking on time and on budget; placing almost US$900 million of new assets into service; completing the Vantage acquisition and subsequently securing an expansion in February 2015; signing new contracts to support additions to the Company's Phase III Expansion plans; announcing approximately US$1.4 billion of new projects and locking in future growth; raising US$1.1 billion in new financings; and increasing the common share dividend.
"Our Phase III Expansion, which is slated to be in-service between late-2016 and mid-2017, continued to receive support from customers throughout the year," commented Mick. "This is a positive indication of the ongoing confidence in the oil and gas reserves in western Canada, despite challenging markets near the end of 2014 and into early 2015. Since September 2014, we've secured an additional 75 000 bpd under long-term, fee-for-service agreements and total committed volume is now 362, 000 bpd, or 86% of the initial 420 000 bpd capacity."
"As I've said, this was the most successful year in our history," stated Mick. "We continue to do the important things right - operating safely and reliably, de-risking our business, securing additional Phase III volumes, and positioning ourselves to generate long-term shareholder value. Doing the important things right will continue to be our focus as we progress through 2015. Pembina has been proactively working to grow its fee-for-service business to minimize future impacts of commodity prices on its financial results. With our $5.8 billion of committed projects, we should see operating margin underpinned by fee-for-service agreements grow from approximately 65 percent in 2014 to in excess of 80 percent in 2018. Our objective is to continue our strategy of pursuing low-risk, contracted projects and to outgrow the component of our overall business that is directly tied to commodity prices."
vMick concluded: "There is no disputing the decline in commodity prices took a toll on our fourth quarter results. However, I'm confident that this will not interfere with our medium-term goal of essentially doubling our EBITDA by mid 2017, which in the end will reward our loyal shareholders. We plan to stay the course, do what's required, and achieve this outcome."2014 Financial Review
Revenue in 2014 was US$6.1 billion compared to US$5 billion in 2013 while net revenue for 2014 was US$1.5 billion compared to US$1.3 billion during 2013. The increase in net revenue was largely due to the Company's Conventional Pipelines and Gas Services businesses which generated increases in net revenue of almost 25% and 36%, respectively, during 2014 compared to the prior year. Strong performance in each of these businesses was driven by new assets and facilities being placed into service as well as increased volumes on legacy assets.
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Edited from source by Elizabeth Corner