Energy

Pipeline operator TC Energy beats profit estimates on higher energy demand

TC Energy’s logo is pictured on a smartphone in front of the stock graph displayed in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

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April 29 (Reuters) – Canadian pipeline operator TC Energy (TRP.TO) reported quarterly profit that narrowly beat estimates on Friday, helped by rising demand for its energy transport services as oil and gas prices surged after Russia’s invasion of Ukraine.

Canada is studying ways to increase pipeline utilization to boost crude exports as Europe seeks to reduce its dependence on Russian oil, the country’s natural resources minister said last month. read more

“The global environment continues to be complex, representing an urgent need to develop greater energy security. Now more than ever, we understand the importance of North America’s role in securing global energy supply,” François Poirier, chief executive officer of TC Energy, said in a statement.

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The pipeline operator said its U.S. natural gas pipelines reached average flows of 30 billion cubic feet per day (bcfpd) in the quarter, up 5% from last year, which include an all-time daily system delivery record of nearly 35 bcf in January.

Around a quarter of the U.S. LNG export volumes travel through company’s natural gas pipelines in the country, TC said.

The company’s liquids pipelines unit posted a profit of C$272 million, compared with a year-ago loss of C$2.51 billion, while earnings at its Canadian natural gas pipelines rose marginally.

Net income attributable to common shares stood at C$358 million ($281.18 million), or 36 Canadian cents per share, in the three months ended March 31, compared with a loss of C$1.1 billion, or C$1.1 per share, a year earlier.

In the year-ago quarter, TC took C$2.2 billion in impairment charges related to the suspension of its Keystone XL pipeline project.

On comparable basis, the company posted a profit of C$1.12 per share, compared with estimates of C$1.11 per share, according to Refinitiv IBES.

($1 = 1.2732 Canadian dollars)

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Reporting by Arunima Kumar in Bengaluru; Editing by Anil D’Silva and Amy Caren Daniel

Our Standards: The Thomson Reuters Trust Principles.

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