Pipeline operator TC Energy posts higher earnings and seeks to sell assets

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Nov 9 (Reuters) – North American oil and gas pipeline company TC Energy Corp (TRP.TO) reported an 8% rise in quarterly profit on Wednesday and said it was considering selling for 5 billion Canadian dollars ($3.7 billion) of assets to repay, take on debt and finance new projects.

Canada, the world’s fourth-largest crude oil producer, is looking for ways to increase pipeline use after Russia’s invasion of Ukraine put a strain on global oil and natural gas supplies.

TC Energy chief executive Francois Poirier said in a statement that the company expects to raise more than C$5 billion through 2023 through the sale of assets and minority interests.

He said the company also intends to approve projects worth C$5 billion a year throughout the decade.

The strategy should appeal to investors, RBC analyst Robert Kwan said in a note.

Among its projects, TC is building the C$11.2 billion Coastal GasLink pipeline to supply Shell PLC (SHEL.L) LNG Canada’s liquefied natural gas export terminal in British Columbia by 2025.

Revenue from TC’s Canadian gas pipelines reached C$409 million for the July-September quarter, up from C$343 million a year earlier.

On Friday, Rival Enbridge Inc (ENB.TO) also reported higher third-quarter adjusted earnings.

“Demand for our services across our North American portfolio remains high and we continue to see strong utilization, availability and overall asset performance,” said Poirier.

Net income attributable to common stock for the Calgary-based company was C$841 million, or 84 cents Canadian per share, for the three months ending September 30, compared with C$779 million, or 80 Canadian cents per share, a year earlier.

($1 = 1.3440 Canadian dollars)

Reporting by Rod Nickel in Winnipeg and Arunima Kumar in Bengaluru; Editing by Devika Syamnath and Mark Potter

Our standards: The Thomson Reuters Trust Principles.

Nickel Rod

Thomson Reuters

Covers energy, agriculture and politics in Western Canada, with the energy transition being a key area of ​​interest. Has done short stories in Afghanistan, Pakistan, France and Brazil and covered Hurricane Michael in Florida, Tropical Storm Nate in New Orleans and the 2016 Alberta wildfires and leadership election campaigns politics in two Canadian election campaigns.

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