(Reuters) -Pipeline and terminal operator Kinder Morgan on Wednesday posted lower-than-expected profit for the third quarter as higher interest expenses offset strength in its natural gas and products pipeline segment.
The company posted an adjusted profit of 25 cents per share for the quarter ended Sept. 30, compared with analysts’ average estimate of 26 cents per share, according to LSEG data.
Shares of Kinder Morgan were down 1.6% at $16.87 in after-market trade.
The U.S. Federal Reserve’s rapid interest rate hikes to tame inflation have made borrowing more expensive for businesses.
“We expect to finish 2023 slightly below our plan on a full-year basis, due to lower-than-expected commodity prices, delayed RNG (renewable natural gas) projects and higher pipeline integrity expense,” the company said in a statement.
Lower contribution from Kinder Morgan’s carbon dioxide (CO2) transportation segment also pressured its quarterly earnings, hurt by weaker prices of natural gas liquids and CO2, lower volumes and higher power costs.
The Houston-based firm’s earnings from the CO2 segment dropped to $175 million in the July-September quarter, from $195 million last year.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Devika Syamnath)
