TC Energy Corporation., - President and CEO, Russ Girling
President and CEO, Russ Girling
Source: TC Energy
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  • TC Energy (TSX:TRP) has reported promising results for the quarter ending March 31, 2020, despite continued economic disruptions
  • Net income increased by C$144 million to $1.15 billion compared to the same period in 2019
  • Comparable EBITDA also increased by $152 million to $2.5 billion
  • This came largely as a result of increased contributions from Mexican, US and Canadian natural gas pipelines
  • The company also announced quarterly dividends of $0.81 per common share, payable on July 31, 2020
  • TC Energy (TRP) is currently up 0.75 per cent to $64.54 per share, with a market cap of $60.55 billion

TC Energy (TSX:TRP) has reported promising results for the quarter ending March 31, 2020, despite continued economic disruptions.

Net income increased by C$144 million to $1.15 billion compared to the same period last year.

Comparable EBITDA was also up by $152 million to $2.5 billion. This came largely as a result of increased contributions from TC Energy’s Mexican, US and Canadian natural gas pipelines.

However, further increases were held back by the July 2019 sale of an 85 per cent equity interest in Northern Courier, which resulted in lower contributions from liquid pipelines and decreased contributions from liquids marketing activities.

Unlike many companies in the oil and gas sector, TC Energy has experienced minimal interruptions resulting from the COVID-19 pandemic.

Approximately 95 per cent of the company’s income is generated by rate-regulated assets and long-term contracts. As such, TC Energy has been largely protected from any short-term volatility.

Aside from the impact of maintenance activities and usual seasonal factors, the company says that it has not seen any material impact on the utilisation of its assets to date.

Russ Girling, President and CEO of TC Energy, drew attention to the significant performance of the company’s diversified portfolio.

“Comparable earnings per share increased 10 per cent compared to the same period last year while comparable funds generated from operations of $2.1 billion were 17 per cent higher.

“The increases reflect the robust performance of our legacy assets and contributions from the approximately $1.6 billion of capacity projects that have entered service to date in 2020,” he said.

While near-term market uncertainty is expected to continue, TC Energy firmly believes that access to abundant, responsibly-produced energy is a key factor in the health of the global economy and in the standards of everyday living.

As such, TC Energy said that it plans to move ahead with the construction of its Keystone XL pipeline, which is expected to become operational in 2023.

In addition, the company announced dividends for the quarter ending June 30, 2020, of $0.81 per common share, payable on July 31.

TC Energy (TRP) is currently up 0.75 per cent to $64.54 per share at 11:45am EDT.

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