May 07, 2012 [Market Wire: Press Release] - Completed $459 million acquisition of four petroleum storage terminals in Denmark, more than doubling European storage capacity to approximately 19 million barrels.
In the first quarter, Inter Pipeline closed the acquisition of four petroleum storage terminals in Denmark from a subsidiary of Dong Energy A/S (Ensted, Gulfhavn, Stigsnaes, Asnaes).
The acquisition doubled Inter Pipeline’s total European storage capacity to approximately 19 million barrels. The acquisition price was approximately $459 million plus closing adjustments.
With completion of the transaction, Inter Pipeline has become the fourth largest provider of independent bulk liquid storage services in Europe.
Inter Pipeline is currently integrating the acquired terminals with existing European operations and the new subsidiary in Denmark is now conducting business under the name Inter Terminals.
Bulk Liquid Storage
Bulk liquid storage operations contributed significantly to cash flow in the quarter. Funds from operations were $19.3 million, up from $10.5 million generated in the first quarter of 2011.
Higher results were primarily due to inclusion of Danish terminal operations in this quarter’s results.Tank utilization rates for the quarter averaged 88.9%, below the 98.7% realized in the first quarter of 2011. Continuing weakness in the European economy, along with reduced demand for product storage, contributed to lower utilization rates.
