TC Energy Profit Dips from Uncontracted Keystone Volumes

(Reuters) — TC Energy Corp posted a 6% fall in second-quarter comparable profit on Thursday, partly hurt by a drop in uncontracted volumes of crude transported by its flagship Keystone pipeline due to a slump in energy demand. 

Steep declines in oil and gas production, as well as lower demand for refined products, due to coronavirus lockdowns have hurt pipeline operators in the quarter.

TC Energy, however, said it did not expect the pandemic to have any material negative impact on its 2020 earnings or cash flows as most of its earnings come from long-term contracts.

TC Energy is the company behind the controversial Keystone XL pipeline, which has been delayed for more than a decade due to opposition from landowners, environmental groups and tribes.

The company reiterated on Thursday it expects the pipeline to be placed into service in 2023.

It also said it was conducting a review of baseline costs, schedule and the impact of COVID-19 on its Coastal Gaslink pipeline in British Columbia, which has also faced opposition from environmentalists earlier this year.

Comparable earnings fell to C$863 million ($643.31 million), in the quarter ended June 30, from C$924 million, a year earlier.

On a per share basis, it reported earnings of 92 Canadian cents, in line with analysts' estimates.

Net income attributable to common shares rose to C$1.3 billion, or C$1.36 per share, including a gain of C$408 million partly related to the sale of a 65% stake in the Coastal GasLink pipeline.

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