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TC Energy posts C$1 billion quarterly loss on Keystone XL suspension

Published 05/07/2021, 07:45 AM
Updated 05/07/2021, 04:42 PM
© Reuters. FILE PHOTO: A TC Energy pump station sits behind mounds of dirt from the Keystone XL crude oil pipeline as it lies idle near Oyen, Alberta, Canada February 1, 2021.  REUTERS/Todd Korol
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By Nia Williams (NYSE:WMB) and Shariq Khan

CALGARY, Alberta (Reuters) -TC Energy Corp swung to a loss in the first quarter, hit by C$2.2 billion ($1.81 billion) impairment charges related to the suspension of its Keystone XL project, the Canadian pipeline operator said on Friday.

The KXL pipeline was planned to carry 830,000 barrels per day of heavy crude across the border from Alberta to Nebraska, but U.S. President Joe Biden revoked a key permit for the project on his first day in office.

TC Energy (NYSE:TRP) said the impairment charge was related to halting work on KXL and a reassessment of related projects like the Heartland Pipeline.

"We were very disappointed with the decision in January to revoke the presidential permit," Chief Executive Francois Poirier said on an earnings call, adding the company was "opportunity-rich" in other parts of its business.

Calgary-based TC Energy owns the largest network of natural gas pipelines in North America as well as the existing Keystone oil pipeline and power and storage assets.

The company posted a C$2.51 billion loss from its oil pipelines, of which Keystone is the biggest contributor, compared with a C$411 million profit in the same period last year.

It reported net loss attributable to shareholders of C$1.1 billion, or C$1.11 per share, in the three months ended March 31 compared with a profit of C$1.1 billion a year earlier.

Excluding items, the company earned C$1.16 per share, slightly better than analysts' average estimate of C$1.10, according to Refinitiv IBES data.

© Reuters. FILE PHOTO: A TC Energy pump station sits behind mounds of dirt from the Keystone XL crude oil pipeline as it lies idle near Oyen, Alberta, Canada February 1, 2021.  REUTERS/Todd Korol

TC Energy shares closed up 0.2% on the Toronto Stock Exchange at C$61.94.

($1 = 1.2176 Canadian dollars)

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