Canada's Inter Pipeline Halts sale of European Unit Due to Coronavirus Impact
(Reuters) — Canada's Inter Pipeline Ltd on Monday halted the planned sale of its European bulk liquid storage business, the latest hit to the energy patch caused by plummeting oil prices and the coronavirus pandemic.
Inter Pipeline said potential buyers of the European bulk liquid business had been significantly affected by the pandemic and that now was not the time to pursue a major pan-European transaction. It said it may revisit the process but did not provide a timeline.
The company also cut its monthly dividend by 72%.
The dividend cut is a rare step for Canada's pipeline operators and analysts warned that it could foreshadow strains in the sector as oil producers scale back output during the coronavirus outbreak and the Saudi-Russia oil price war.
Shares in Inter Pipeline skidded more than 14% after the company announced the defensive steps but have since recovered some lost ground.
Inter Pipeline, which transports crude from Canada's oil sands region, said the cut to its monthly payout would save C$525 million per year.
"It is important to be clear that the decision of the board of directors to reset the dividend in no way reflects a lack of confidence in our core businesses," Chief Executive Christian Bayle said in a statement.
"However, we are currently in a unique and very challenging business environment driven by the COVID-19 pandemic and oil supply conflict between OPEC+ member nations."
Related News
Related News
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Kinder Morgan Declares Force Majeure on West Texas Gas Pipeline After Fire
- Williams Delays Louisiana Pipeline Project Amid Dispute with Competitor Energy Transfer
- Pipeline Hydro Test Pressure Determination
- Venezuela Proposes Alternative Payment Plan as Weak Bids Surface in Citgo Auction
- Baker Hughes Wins Contract for Huge Aramco Gas Expansion Project
- Japan Looks at Developing Domestic Pipelines Sector
- Enbridge Picks Contractors for Great Lakes Tunnel Project, Securing Line 5 Pipeline Route
Comments