Our employees have to deal with a high volume of change during the quarter. Yet I am proud that they were able to achieve solid results in each of our businesses despite the attention required for the integration.
This integration has tested every aspect of our business. We are not just combining two companies. We’re identifying the best processes and practices to adopt moving forward.
Now let's look at Pembina Q2 results compared to second quarter last year. With such a large acquisition, reported numbers look quite a bit different than what you are used to. So I will try to add some color.
I want to start up by saying that we are confident in the strong fundamental story of our business. We didn’t undertake take this acquisition for few months work of the results, but for the long-term benefits . We see involving from our industry leading suite of integrated assets. To provide a better contacts before getting into specifics the NGL business, we have acquired from Provident is a seasonal business during which the second quarter traditionally contributes lower operating margins due to lower NGL sales and weaker pricing in the summer months.Propone prices were as low as CAD0.73 per gallon in June of 2012 compared to CAD1.26 per gallon in the first quarter of 2012 and a CAD1.50 this time last year. Current propane prices are CAD0.94 per gallon and the future price for the second half of the year averages about CAD0.95 per gallon. Looking at revenue operating margin, gross profit, EBITDA and earnings you can see that each of these metrics have increased for the quarter and year-to-date largely as a result of the acquisition, continued solid performance of Pembina's legacy businesses. A significant unrealized gain on commodity related derivative financial instruments also build up our results. Pembina is required to employ mark-to-market accounting for all unrealized gains and losses associated with financial derivative instruments at a point in time and report these against current period earnings. Read the rest of this transcript for free on seekingalpha.com