TC Energy reports Q1 earnings increase
North American energy infrastructure company TC Energy said April 28 it had comparable earnings in Q1 2023 of C$1.23bn (US$900mn), up from C$1.1bn in the same period a year ago.
Comparable EBITDA rose to C$2.8bn from C$2.4bn, while total segmented earnings increased to C$2.17bn from C$1.17bn, led by US natural gas pipelines, which saw segmented earnings of C$1.1bn, up from C$310mn.
Q1 results, it said, were underpinned by strong utilisation and demand for its assets and services. Nova Gas Transmission System Limited (NGTL) throughput in western Canada averaged 14.5bn ft3/day, up from Q1 2022, while throughput across its US natural gas pipeline network averaged 28.5bn ft3/day, with several assets performing near record levels, and deliveries to US LNG facilities reached record levels.
During the quarter, TC Energy continued to advance its 2023 secured capital programme, with C$1.4bn of projects placed in service in the quarter. It remains on track to place C$6bn of projects in service this year.
Most of the capital additions were in Canada, where C$1.1bn of projects placed in service added 700mn ft3/day of additional market access, with another 500mn ft3/day expected in Q2 2023.
The Coastal Gas Link (CGL) pipeline, which will deliver 1.8bn ft3/day of natural gas to the LNG Canada liquefaction terminal under construction in BC, is about 87% complete, TC Energy said, with more than 567 km of pipe on the 670 km right-of-way backfilled.
Mechanical completion is targeted for late 2023, it said.
Alongside the secured capital additions, TC Energy continued to advance its planned C$5bn asset divestiture programme, with more details to be provided as the programme progresses.
“Our priorities for 2023 are clear – safely and reliably deliver essential energy across North America, advance our critical energy infrastructure projects and successfully execute our asset divestiture programme to accelerate deleveraging objectives,” CEO Francois Poirier said.