Kinder Morgan Inc reported lower-than-expected quarterly revenue for the ninth straight quarter as its pipelines transported lower volumes of oil and gas.
Pipeline companies, once seen as insulated from commodity price swings due to fixed-fee contracts, were hit hard by a more than 60 per cent slump in oil prices since mid-2014 as cash-strapped oil and gas companies renegotiated contracts.
Kinder Morgan said natural gas transport volumes fell two per cent in the quarter, however it expects future natural gas infrastructure to grow due to higher demand from gas-fired power generators, exports to Mexico and growth in the U.S. petrochemical industry.
The company reported a net profit attributable to shareholders of US$170 million, or eight cents US per share, in the fourth quarter ended Dec. 31, compared with a loss of US$721 million, or 32 cents US per share, a year earlier.
Kinder Morgan said it paid US$988 million lesser in charges in the fourth quarter compared to a year earlier. The year-ago quarter included a US$1.15 billion impairment charge.
According to Thomson Reuters I/B/E/S, the company earned 18 cents US per share on an adjusted basis, in line with analysts' average estimate.
Revenue fell to US$3.39 billion from US$3.64 billion, missing analysts' average estimate of US$3.54 billion.
Up to Wednesday's close of US$22.44, the company's shares had risen about 73 per cent in the last 12 months.
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