Pipeline Operator TC Energy Beats Profit Estimates on High Gas Demand
(Reuters) — North American pipeline operator TC Energy beat fourth-quarter profit estimates on Friday, boosted by high demand for transporting natural gas.
The United States was the world's top liquefied natural gas (LNG) exporter last year, however President Joe Biden paused in January approvals for pending and future applications for export projects.
Adjusted core profit from TC Energy's U.S. natural gas pipelines rose to C$1.23 billion ($912.73 million) in the quarter from C$1.14 billion a year earlier.
Adjusted core profit in the company's Canadian natural gas pipelines segment climbed 35% to C$1.03 billion.
Even if the U.S. LNG pause is prolonged, TC sees LNG demand delivering significant growth, CEO Francois Poirier said on a call with analysts, noting that TC also owns gas pipelines in Canada and Mexico.
The company said last year it would spin off its oil pipeline business and focus on transporting natural gas.
TC is aiming to sell at least C$3 billion worth of assets this year to reduce debt, likely through two to four sales, Poirier said. It is likely to complete at least one sale in the first half, he added.
TC said completion of construction and commissioning of its C$14.5-billion Coastal GasLink pipeline triggered a C$200-million payment from LNG Canada, the British Columbia export company that will receive gas via Coastal.
The Calgary, Alberta-based company raised its dividend 3% and said it expects 2024 capital spending of between C$8.5 billion and C$9.0 billion.
TC Energy reported adjusted profit of C$1.35 per share for the quarter, compared with analysts' average estimate of C$1.11, according to LSEG data.
Adjusted core profit from TC's liquids pipelines was up 4% from the previous year, at C$379 million.
The company reiterated guidance for EBITDA of C$11.2 billion to C$11.5 billion this year.
TC shares rose 2% in Toronto.
($1 = 1.3476 Canadian dollars)
Related News
Related News
- Trump Puts Keystone XL Pipeline Back in Discussion, Though Revival Faces Developer Resistance
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Energy Transfer Wins New York Court Ruling in $150 Million Pipeline Fraud Case
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Army Corps Lists Enbridge’s Line 5 as ‘Emergency’ Project Eligible to Bypass Environmental Review
- India’s GAIL Eyes U.S. LNG Deals Following Trump’s Policy Shift
- TC Energy Beats Q4 Profit Estimates, Driven by Mexico Pipelines' Success
- Michigan Court Backs Permits for Enbridge’s Line 5 Pipeline Tunnel Project
Comments