Canadian pipeline operator TC Energy reported a slightly better-than-expected quarterly profit on April 29, helped by rising demand for its energy transport services as oil and gas prices surged after Russia’s invasion of Ukraine.
The Calgary, Alberta-based company said increasing U.S. 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.
TC Energy expects North American LNG exports to grow 90% from this year’s peak of 13.7 Bcf/d to hit 25 Bcf/d by 2030.
“Going forward, we expect to compete for and win our fair share of the growth in the LNG market,” CEO François Poirier told a conference call.
TC Energy 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.
TC’s liquids pipelines business posted a profit of CA$272 million, compared with a year-ago loss of CA$2.51 billion related to the cancellation of its Keystone XL pipeline project.
Net income attributable to common shares stood at CA$358 million (US$281.18 million), or 36 Canadian cents per share, in the three months ended March 31, compared with a loss of CA$1.1 billion, or CA$1.1 per share, a year earlier. Read full story
On comparable basis, the company posted a profit of CA$1.12 per share, compared with estimates of CA$1.11 per share, according to Refinitiv IBES.
TC said 2022 capital spending will increase to CA$7 billion, up from a previous forecast of CA$6.5 billion, primarily due to higher costs on the NGTL system as a result of labor and materials cost inflation.
(US$1 = 1.2732 Canadian dollars)
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