Canada’s TC Energy slips in Q3
Canadian energy infrastructure company TC Energy on November 5 reported slightly lower net income attributable to common shares in Q3 2021 compared to the same period a year ago, but said comparable earnings for the period were higher.
The difference, it said, reflects specific items that are included in net income but excluded from comparable earnings.
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Comparable earnings for the period increased to C$1bn (US$800mn) from C$893mn, while net income attributable to common shares slipped to C$779mn from C$904mn. Comparable EBITDA also slipped, to C$2.24bn from C$2.29bn
The company, which operates natural gas and liquids pipelines in Canada, the US and Mexico, and power and storage facilities in Canada and US, is advancing a C$22bn secured capital program and expects to add to that over the next several years, CEO Francois Poirier said.
“We are in the midst of an unprecedented period that is providing a significant number of investment opportunities driven by both the growing demand for energy and the transition to a cleaner energy future,” Poirier said. “We expect to sanction approximately $7bn of new projects in 2021 with a risk-adjusted return profile that is consistent with previous investments and anticipate annual amounts of more than $5bn will be added to our secured projects portfolio in each of the next several years.”
TC Energy said it continues to see completion delays and project costs on its Coastal GasLink pipeline project, which will deliver 2.1bn ft3/day of natural gas to the LNG Canada liquefaction terminal on BC’s northern coast. It has not said what the extent of those delays and cost over-runs might be, but did say it has put in place C$3.3bn of temporary financing as a bridge to a required increase in project-level financing to fund incremental costs.
Higher costs will be rolled into transportation rates to be paid by LNG Canada's joint venture partners, and remain a matter of ongoing negotiations between TC Energy and the LNG Canada consortium.
“While we do not anticipate our future equity contributions will increase significantly, the portion of this temporary financing that will ultimately be required to be contributed as equity by Coastal GasLink LP partners, including us, will be determined by the substance of a resolution with LNG Canada,” the company said.
As at the end of September, CGL was more than 50% complete, and the estimated cost of the pipeline remains at C$6.6bn.