Plains All American Pipeline LP reported on Feb. 7 a 2016 quarterly profit that nearly halved, largely due to a 23.3% jump in costs.
The company, one of the top U.S. transporters of oil and gas, said total revenue rose about 19% to $5.95 billion in the fourth quarter of 2016, 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 in January 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," CEO Greg Armstrong said in a statement.
Revenue in its supply and logistics business, the company's biggest division, rose 20.4% to $5.67 billion in the latest quarter.
The unit moved 1.25 million barrels per day (MMbbl/d) in the quarter, up from 1.17 MMbbl/d one 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, one year earlier.
Up to Feb. 7's close, the company's shares had gained about 58% in the past 12 months.
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