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TC Energy reports strong second quarter financial results

Published by , Editorial Assistant
World Pipelines,

TC Energy Corporation (TC Energy or the Company) has announced net income attributable to common shares for second quarter 2019 of CAN$1.1 billion or CAN$1.21 per share compared to net income of CAN$785 million or CAN$0.88 per share for the same period in 2018. Comparable earnings for second quarter 2019 were CAN$924 million or CAN$1.00 per common share compared to CAN$768 million or CAN$0.86 per common share in 2018. TC Energy's Board of Directors also declared a quarterly dividend of CAN$0.75 per common share for the quarter ending 30 September, 2019, equivalent to CAN$3.00 per common share on an annualised basis.

"During the second quarter of 2019, our diversified portfolio of critical energy infrastructure assets continued to perform very well,” said Russ Girling, TC Energy’s President and Chief Executive Officer. "Comparable earnings per share increased 16% compared to the same period last year while comparable funds generated from operations of CAN$1.7 billion were 14% higher. The increases reflect the strong performance of our legacy assets and contributions from approximately CAN$5.6 billion of growth projects that entered service in the first half of 2019."

"With our existing assets benefiting from continued high utilisation rates and CAN$32 billion of secured growth projects underway, approximately CAN$7 billion of which are expected to be completed by the end of the year, we expect our strong operating and financial performance to continue. They are underpinned by regulated or long-term contracted business models that are expected to support annual dividend growth of 8 - 10% through 2021,” added Girling. “We have invested CAN$11 billion in these projects to date and are well positioned to fund the remainder of our secured growth programme."

During the last few months the company advanced a number of portfolio management activities including the partial monetisation of the Northern Courier Pipeline as well as the sale of certain Columbia Midstream assets and Ontario natural gas-fired power plants. These initiatives, combined with the sale of the Coolidge generating station which closed in late May, are expected to result in approximately CAN$6.3 billion of proceeds from announced asset sales in 2019. When combined with significant internally generated cash flow, access to capital markets and potential additional portfolio management, the company is well positioned to prudently fund its capital programme with a strong focus on per share measures and in a manner that is consistent with achieving targeted credit metrics including debt-to-EBITDA in the high four times area in 2019 and thereafter.

"Looking forward, we continue to progress more than CAN$20 billion of projects under development including Keystone XL and the Bruce Power life extension programme. Success in advancing these and other growth initiatives that are expected to emanate from our five operating businesses and exceptional footprint across North America could extend our growth outlook well into the next decade," concluded Girling.

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