Pembina Pipeline declares its common share dividend for shareholders

Pembina Pipeline

Pembina Pipeline, leading transportation, and midstream services provider, announced this Wednesday it has declared its common share dividend for shareholders. The company’s Board of Directors declared a dividend for September 2021 of $0,21 per share.

Such an amount will be paid to shareholders on October 15, 2021. The payment, however, is still subject to applicable law. The dividend is an “eligible dividend” for Canadian income tax purposes.

For all shareholders that are not Canadian residents, Pembina’s common share dividends is a “qualified dividends” and may be subject to Canadian withholding tax.

Specifically for all shareholders in the U.S. receiving dividends in U.S. dollars, the September payment should be of approximately $0.1677 per share (before deduction of any applicable Canadian withholding tax); based on a currency exchange rate of 0.7988.

According to the company’s statement, the actual U.S. dollar dividend will depend on the Canadian/U.S. dollar exchange rate on the payment date and will be subject to applicable withholding taxes.

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Pembina Pipeline presents 2Q financial results

On the other hand, the news of the dividend came a month later the company released its financial results for the second quarter of the year. Back in early August, the company declared a 2Q year-to-date adjusted EBITDA of $778 million and $1.6 billion. Which is one percent lower than the same period in the prior year.

The impact of a lower U.S. dollar exchange rate; higher power costs; and higher general and administrative expense were crucial factors for the slight decrease. However, the negative effect of these factors was offset by a strong performance from existing assets along with Prince Rupert Terminal; Empress Infrastructure and Duvernay III entering into service.

Furthermore, the company’s 2Q had the announcement of three transformational partnerships. Including a partnership with the Haisla Nation to develop the proposed Cedar LNG Project, Chinook Pathways; a partnership with Western Indigenous Pipeline Group to pursue ownership of the Trans Mountain Pipeline; as well as a vision for the Alberta Carbon Grid.

Finally, the company reported earnings of $254 million for the second quarter; two percent lower than the same period in the prior year. Lower unrealized loss on commodity-related derivatives and lower current tax expense as a result of lower taxable income; combined with the reduction of the Alberta corporate tax rate from 10 to 8 percent effective July 2020 were main factors for the decrease.

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