TC Energy (TRP) Q4 Earnings Meet, Sales & EBITDA Fall Y/Y
Zacks Investment Research | Feb 13, 2020 10:29PM ET
TC Energy Corporation’s (TSX:TRP) fourth-quarter 2019 earnings of 78 cents per share came in line with the Zacks Consensus Estimate as well as the year-ago figure. This performance is primarily attributable to a solid progress in the company’s projects at U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines plus the Power and Storage segments. Contributions from growth projects worth C$8.7 billion that came online in 2019 also aided the earnings.
However, the company’s comparable EBITDA of C$2.3 billion in the quarter was down from C$2.5 billion reported in the same period last year owing to lower contribution from the Canadian Natural Gas Pipelines segment.
TC Energy’s revenues of C$3.26 billion dropped 16.42% year over year.
Segmental Information
Canadian Natural Gas Pipelines recorded comparable EBITDA of C$618 million, reflecting a 24.4% fall from the year-ago quarter. This downside was attributable to a weak contribution from Canadian Natural Gas Pipelines due to the Canadian Mainline’s decreased net income and lower incentive earnings in 2019.
U.S. Natural Gas Pipelines’ comparable EBITDA amounted to C$855 million, up 5.3% from the prior-year level. This upside can be attributed to better contributions from Columbia Gas and Columbia Gulf growth projects.
Mexico Natural Gas Pipelines’ comparable EBITDA of C$165 million improved from the year-earlier quarter of C$152 million. Contribution from a strong U.S. dollar was offset by changes in the timing of revenue recognition.
Liquids Pipelines unit generated comparable EBITDA of C$472 million in the fourth quarter, declining from the year-ago level of C$538 million. Tumbling volumes in the Keystone Pipeline System caused this downtrend. Moreover, earnings drop from liquids marketing activities due to lower margins was a prime reason.
Power and Storage posted comparable EBITDA of C$210 million, up 25.7% year over year on the back of earnings improvement from Bruce Power owing to a hike in realized sales price and higher output.
TC Energy Corporation Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.