Plains All American Pipeline (PAA 1.86%) reported fourth-quarter and full-year earnings after the market close Wednesday. For the quarter, the partnership reported a 3% drop in net income and EBITDA. On the year, both metrics posted sizable gains, as net income climbed 24% over 2012's number, while EBITDA grew 11% on a year-over-year basis.
The decline in the fourth-quarter numbers was driven by the partnership's supply and logistics segment, where adjusted segment profit declined 22% in the fourth quarter. Despite the drop-off, the figure slightly exceeded management's midpoint guidance for the quarter. In other words, they knew this was likely, given the abnormal success of the segment in 2012.
On a positive note, the fourth-quarter adjusted segment profit for the transportation segment grew 8%, and 20% in the facilities segment.
Looking ahead, management expects aggregate adjusted segment profit for the transportation and facilities segments to increase 15% in 2014, while the supply and logistics segment returns to a baseline performance. The partnership also expects to deliver 10% growth for its distribution this year, while maintaining full coverage. Plains' fourth-quarter distribution was $0.6150 per unit, a 9.3% increase year over year.
Plains All American's fourth-quarter earnings call will take place at 11 a.m. ET on Thursday, Feb. 6. Interested investors can tune in here.