Canada’s TC Energy ‘Robust’ in Q3
Canadian infrastructure company TC Energy (formerly TransCanada) said October 29 it had a “robust” financial performance in Q3 2020, with net income attributable to common shares 22% higher than in the same period a year ago.
Net income in the quarter increased to C$904mn (US$686mn) from C$739mn, it said, but comparable pre-tax earnings (Ebitda) slipped year-on-year to C$2.29bn from C$2.34bn. Net cash provided by operations edged slightly higher, to C$1.78bn from C$1.59bn.
“Our significant internally generated cash flow, strong financial position and continued access to capital markets will enable us to prudently fund our secured capital program in a manner that is consistent with maintaining our strong credit profile and targeted metrics,” CEO Russ Girling said. “Once completed, approximately 98% of the company’s Ebitda is expected to come from regulated and/or long-term contracted assets.”
Girling will retire as CEO at the end of this year, and will be replaced by Francois Poirier, who is now COO and president of TC Energy’s power and storage operations.
Through the first nine months this year, TC Energy has continued to advance its C$37bn secured capital program, and has placed about C$3.1bn of assets into service, including C$3bn on its Nova Gas Transmission Limited (NGTL) system in western Canada and C$100mn on its Canadian Mainline system.
Separately, TC Energy announced it would proceed with its $200mn (C$267mn) Wisconsin Access Project to replace, upgrade and modernise certain facilities on its ANR Pipeline in Wisconsin, Illinois, Iowa, Missouri and Kansas. The project is underpinned by 72mn ft3/d of firm transportation service under long-term contracts with utilities in the US Midwest and should be in-service in H2 2022.