Kinder Morgan profit rises as fuel demand heats up
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FILE PHOTO: The headquarters of U.S. energy exporter and pipeline operator Kinder Morgan Inc. is seen in Houston, Texas, U.S. September 27, 2020. REUTERS/Gary McWilliams/File Photo/File Photo
(Reuters) - Kinder Morgan Inc posted a 4.1% jump in adjusted profit for the third quarter on Wednesday, as a rebound in fuel demand from pandemic lows boosted the pipeline operator's volumes.
With people taking to the roads again and air travel picking up as international borders reopen, Kinder Morgan reported a jump of 9% in gasoline volumes and a 56% surge in jet fuel volumes.
The company also posted a 3% rise in gas pipeline volumes as a scramble to fill gas inventories before the winter heating season in Europe and Asia steadily boosted exports of liquefied natural gas from the United States.
"We continue to benefit from growing global natural gas demand. Our assets are well-positioned to serve growing domestic markets and export locations for LNG and Mexico," Chief Executive Officer Steve Kean said.
The Delta variant of COVID-19 had hit refined products volumes during the period, but the company expects the impact to ease in the fourth quarter.
Kinder Morgan, which pushed into the renewable natural gas business with the $310 million purchase of privately held Kinetrex Energy this year, said it was looking to take advantage of the global transition to green energy by seeking opportunities in the space.
Kinetrex and natural gas pipeline firm Stagecoach Gas Services, which Kinder Morgan bought in July, are expected to slightly outperform the company's expectations for the year.
Adjusted profit rose to $505 million, or 22 cents per share, in the third quarter ended Sept. 30, from $485 million, or 21 cents per share, a year earlier.
Analysts on average had estimated 24 cents per share, according to Refinitiv IBES data.
Revenue of $3.82 billion beat estimates of $3.26 billion.
(Reporting by Ruhi Soni in Bengaluru; Editing by Devika Syamnath)
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