TC Energy reports “solid” Q2 results
Canadian energy infrastructure company TC Energy reported “solid” Q2 2023 results on July 27, alongside plans to spin its liquids pipeline business out of its gas pipelines, power and energy solutions businesses.
“The separated industry-leading companies will have greater strategic focus to execute major projects, drive efficiencies and operational excellence, and enhanced flexibility to pursue disciplined growth,” CEO Francois Poirier said.
The quarter, Poirier said, saw TC Energy advance several of its 2023 strategic priorities, including executing on its secured capital program, which includes the Coastal GasLink (CGL) pipeline to Canada’s west coast and the Southeast Gateway pipeline project in Mexico intended to serve Gulf Coast power and LNG projects.
CGL, which will deliver about 1.8bn ft3/day of feed gas to the LNG Canada liquefaction project near Kitimat, on BC’s northern coast, is now about 91% and continues to track to mechanical completion by the end of the year.
Southeast Gateway will commence onshore pipe installation this summer and expects to begin offshore pipe installation by the end of the year.
The company also “significantly accelerated” its deleveraging goal ahead of year-end, with the sale, announced earlier this week, of a 40% equity interest in the Columbia Gulf and Columbia Gas systems for cash proceeds of C$5.2bn.
Net income in the quarter fell to C$250mn from C$889mn, reflecting in part a C$394mn segment loss from Canadian natural gas pipelines. US natural gas pipelines delivered segment earnings of C$715mn, while Mexico gas pipelines contributed segment earnings of C$182mn.
Comparable EBITDA for the quarter increased slightly, to C$2.5bn from C$2.4bn.