In the third quarter of this year, Shell Midstream Partners posted a revenue loss on the back of the storm season in the US Gulf of Mexico.
In the July-September period, the company’s revenue was down to USD110 million, down by USD10 million quarter-to-quarter. The offshore oil pipeline volumes sustained a loss to 1.83 million bpd, compared to the previous quarter’s 2.02 million.
The company has slashed 2020’s capital expenditures (CAPEX) by USD21 million from the original level as the global demand is hurt by the coronavirus pandemic.
Looking forward, Shell Midstream estimated its income to see USD15 million additional hit and cash available for distribution on the back of Hurricane Delta and Zeta, as well as planned maintenance.
However, the company is still planning to focus on its oil output in the US Gulf of Mexico and proceed with the expansion of its Mars crude oil pipeline system.
