TC Energy TRP-T -0.40%decrease missed estimates for third-quarter profit on Thursday, hurt by weakness in the pipeline operator’s U.S. operations and in its power and energy solutions business.
AI-driven power demand, industrial applications and LNG exports are driving up natural gas consumption, yet price pressures and competition from coal remain ongoing market challenges.
U.S. natural gas futures fell over 4 per cent sequentially, extending a decline that began in the second quarter after snapping four consecutive quarters of gains.
The drop in prices weighed on TC Energy’s transport volumes.
Net income from the company’s U.S. natural gas pipelines, its largest segment, fell to $801-million in the third quarter, from $1.3-billion a year ago.
Adjusted core profit in the power and energy solutions business was $266-million in the quarter, down 18.4 per cent from a year ago.
However, its Canadian natural gas pipelines saw adjusted core earnings rise to $913-million in the quarter ended Sept. 30, from $845-million a year ago.
Climate activists say B.C. needs to conduct new assessment for natural gas pipeline
The company operates a 58,100 mile-long network of pipelines, supplying more than 30 per cent of the clean-burning natural gas consumed daily across North America.
The company expects adjusted core profit for 2026 to be in the range of US$11.6-billion to US$11.8-billion, nearly 6 per cent to 8 per cent growth year-over-year.
It also anticipates 2028 core profit to be in the range of US$12.6-billion to US$13.1-billion, representing a 5 per cent to 7 per cent annual growth rate between 2025 and 2028.
On an adjusted basis, the Calgary-based company earned 77 Canadian cents per share for the three months, compared with analysts’ average expectation of 80 Canadian cents, according to data compiled by LSEG.
Leave a Reply
You must be logged in to post a comment.