TC Energy Quarterly Earnings Fall, Continues to Expect Lower Profit This Year
By Robb M. Stewart
TC Energy continues to expect lower earnings this year as the energy company pushes ahead with plans to shed assets, with profit sliding in the first quarter despite a lift in revenue.
The Canadian owner of natural gas and crude oil pipelines and nuclear power facilities on Friday reported income attributable to common shares of 1.2 billion Canadian dollars ($879.8 million), or C$1.16 a share, compared with C$1.31 billion, or C$1.29, a year earlier.
Comparable earnings before interest, tax, depreciation and amortization--a measure of profit followed by industry analysts--were 11% higher at C$3.09 billion. That was ahead of the C$2.98 billion consensus forecast of analysts polled by FactSet.
First-quarter revenue was up 8% at C$4.24 billion, broadly in line with the C$4.21 billion analysts were expecting.
TC Energy reaffirmed its target for comparable Ebitda of between C$11.2 billion and C$11.5 billion in 2024, with earnings per share for the year set to fall as higher net income attributable to noncontrolling interests is partially offset by increased earnings relateto a lift in spending on its SoutheastGatewaypipelineproject in Mexico.
The company advanced its program this year to offload some C$3 billion in assets with a deal to sell East Coast natural gas transporter Portland Natural Gas Transmission System to BlackRock, which it said is expected to bring in pretax proceeds of roughly C$1.1 billion. TC Energy has also announced the sale ofPrince Rupert GasTransmission assets to Nisga'aNation andWesternLNG.
Last July, TC Energy agreed to sell a stake in the Columbia Gas and Columbia Gulf pipelines that deliver natural gas in the U.S. to Global Infrastructure Partners for C$5.2 billion, part of an effort to exit C$5 billion-plus in assets by the end of last year as it seeks to bolster its balance sheet and fund its capital program.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
May 03, 2024 07:16 ET (11:16 GMT)
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