(Reuters) - Plains All American Pipeline LP (PAA.N) reported on Tuesday a quarterly profit that nearly halved, largely due to a 23.3 percent jump in costs.
The company, one of the top U.S. transporters of oil and gas, said total revenue rose about 19 percent to $5.95 billion in the fourth-quarter ended Dec. 31.
The results come when North American pipeline operators are back on investors’ radar after U.S. President Donald Trump revived growth prospects in a sector that struggled to cope with a two-year oil price slump and strident opposition from environmental and Native American activists.
Plains has been expanding its oil transportation and gathering facilities, striking two deals last month to expand in the Permian Basin, the top U.S. oil field.
“We are encouraged by the significant increase in drilling and completion activities in the Permian Basin observed over the latter half of 2016 and continuing into 2017,” Chief Executive Greg Armstrong said in a statement.
Revenue in its supply and logistics business, the company’s biggest division, rose 20.4 percent to $5.67 billion in the latest quarter.
The unit moved 1.25 million bpd (barrels per day) in the quarter, up from 1.17 million bpd a year earlier.
However, the Houston-based company’s net income fell to $126 million, or 14 cents per share, from $247 million, or 24 cents per share, a year earlier.
Up to Tuesday’s close, the company’s shares had gained about 58 percent in the past 12 months.
Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj Kalluvila