Pipeline operator TC Energy beats profit estimates on higher energy demand
Canadian pipeline operator TC Energy (TRP.TO) reported a slightly better-than-expected quarterly profit on Friday, helped by rising demand for its energy transport services as oil and gas prices surged after Russia’s invasion of Ukraine.
The Calgary-based company said increasing U.S. liquefied natural gas (LNG) exports and a focus on global energy security were creating new opportunities. Around a quarter of U.S. LNG export volumes travel through TC’s gas pipelines.
“Going forward, we expect to compete for and win our fair share of the growth in the LNG market,” Chief Executive François Poirier told a conference call.
TC said its NGTL gas pipeline system in Canada had its highest average winter demand since 2000. U.S. natural gas pipeline flows rose 5% from last year, and hit an all-time daily system delivery record of nearly 35 bcf in January.
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.
TC said 2022 capital spending will increase to C$7 billion, up from a previous forecast of C$6.5 billion, primarily due to higher costs on the NGTL system as a result of labor and materials cost inflation.
($1 = 1.2732 Canadian dollars)
Source: Reuters (Reporting by Anil D’Silva, Amy Caren Daniel and Marguerita Choy)