Alberta Based Pembina hosted it's First Quarter report on Thursday, a fairly expansive look at how the current times of COVID are having an impact on the energy sector and the ongoing business plans for the Canadian energy giant.
The opening of the report putting the focus on the unusual and challenging times that Canadian find themselves in and how the Alberta company is addressing them.
During this challenging and unprecedented period, everyone at Pembina hopes the Company's stakeholders - its employees, communities, customers and investors - are safe, healthy and finding a way to manage through these uniquely difficult circumstances. Pembina remains focused on the business and meeting the needs of customers while acknowledging the human impact and the immense toll the COVID-19 pandemic is having on everyone.
The current pandemic has far reaching implications for both human health and the health of the global economy. The concurrent decline in global energy prices further magnifies this crisis for energy-related businesses and the people and communities that are dependent upon them.
Today, while Pembina reported strong quarterly financial and operational results, the impact of these crises will begin to materialize more fully in subsequent quarters and this has informed Pembina's outlook for the remainder of the year, including our 2020 guidance, as discussed further below. In response to the health pandemic and the resulting significant decline in global energy prices, Pembina previously announced a decisive action plan to protect all its stakeholders.
Among some of the steps taken in response to COVID, Pembina noted that they have:
Restricted business travel, cancelled large group meetings and is requiring non-essential employees and contractors who can work from home to do so.
Determined the essential staff and critical infrastructure required to ensure uninterrupted service to customers while maintaining the safety of its assets, employees and other stakeholders. The Company has not experienced any operational disruptions to its assets as a result of COVID-19.
Announced the deferral of some expansion projects to reflect current market realities and uncertainty over the duration of this downturn.
Further, additional discretionary capital investment has been removed from Pembina's 2020 capital budget. The result is a $900 million to $1.1 billion reduction to the Company's 2020 capital investment plans.
Of note for Prince Rupert was an update on the status of the Pembina LPG Gas shipmen facility at Watson Island, with Thursday's statement noting that work has been suspended at the Watson Island site, with plans in motion for a remobilization plan towards the construction process.
No timeline towards a return to the worksite however was included in the report.
Pembina officials did note however, that as a result of the pause at Watson Island, the "In Service" date for the 250 million gas shipment facility project has now been delayed until the first quarter of 2021, subject to regulatory and environmental measures.
You can review the full First Quarter update from Pembina here.
Prince Rupert City Council has frequently pointed to the leasing of a portion of the Watson Island facility to Pembina as an important element of their municipal financial planning ambitions, most recently as part of the adoption of the 2020 Prince Rupert Budget.
More items of note related to the Watson Island project can be explored here.
Cross posted from the North Coast Review.
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