News wire — North American pipeline operator TC Energy beat fourth-quarter profit estimates on Friday, boosted by high demand for transporting natural gas.
The United States was the world’s top liquefied natural gas (LNG) exporter last year, however President Joe Biden paused in January approvals for pending and future applications for export projects.
Adjusted core profit from TC Energy’s U.S. natural gas pipelines rose to C$1.23 billion ($912.73 million) in the quarter from C$1.14 billion a year earlier.
Adjusted core profit in the company’s Canadian natural gas pipelines segment climbed 35% to C$1.03 billion.
Even if the U.S. LNG pause is prolonged, TC sees LNG demand delivering significant growth, CEO Francois Poirier said on a call with analysts, noting that TC also owns gas pipelines in Canada and Mexico.
The company said last year it would spin off its oil pipeline business and focus on transporting natural gas.
TC is aiming to sell at least C$3 billion worth of assets this year to reduce debt, likely through two to four sales, Poirier said. It is likely to complete at least one sale in the first half, he added.
TC said completion of construction and commissioning of its C$14.5-billion Coastal GasLink pipeline triggered a C$200-million payment from LNG Canada, the British Columbia export company that will receive gas via Coastal.
The Calgary, Alberta-based company raised its dividend 3% and said it expects 2024 capital spending of between C$8.5 billion and C$9.0 billion.
TC Energy reported adjusted profit of C$1.35 per share for the quarter, compared with analysts’ average estimate of C$1.11, according to LSEG data.
Adjusted core profit from TC’s liquids pipelines was up 4% from the previous year, at C$379 million.
The company reiterated guidance for EBITDA of C$11.2 billion to C$11.5 billion this year.
Reporting by Tanay Dhumal in Bengaluru and Rod Nickel in Winnipeg; Editing by Pooja Desai, Kirsten Donovan – Reuters
This article was originally posted at sweetcrudereports.com
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