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TC Energy profit rises as transport services demand jumps on crude rebound

Canadian pipeline operator TC Energy beat estimates for quarterly profit on Thursday, as demand for its transport services returned with a rebound in crude prices.

Updates with estimate, details on the results, background

July 29 (Reuters) - Canadian pipeline operator TC Energy TRP.TO beat estimates for quarterly profit on Thursday, as demand for its transport services returned with a rebound in crude prices.

Oil and gas companies have sought to revive shuttered production and complete wells not hooked up to pipelines following the bounce-back in crude prices. Still, some worries about fuel demand persist as COVID-19 cases in some parts of the world jump amid slow pace of vaccinations.

"Flows and utilization levels across our network continue to be in line with historical norms despite the ongoing impacts of COVID-19, extreme weather events, and energy market volatility" TC said in a statement.

The company's liquid pipelines business, which includes Keystone, posted a C$250 million ($200.74 million) profit in the quarter, compared with a C$2.51 billion loss in the prior quarter.

Income from its Canadian natural gas pipelines rose 1.4% to C$361 million sequentially.

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.

Its Keystone XL $9-billion oil pipeline, which was expected to carry 830,000 barrels per day of heavy crude from Canada's Alberta province to Nebraska in the United States, was officially canceled in June.

Net income attributable to common shares rose to C$982 million, or C$1 per share, in the three months ended June 30, compared to a loss of C$1.06 billion, or C$1.11 per share, in the prior quarter.

TC had taken hit of C$2.2 billion in impairment charges related to the suspension of its Keystone XL, in its first quarter.

Its comparable earnings stood at C$1.05 billion, or C$1.07 per share. That beat estimates of 96 Canadian cents per share, according to Refinitiv IBES data.

($1 = 1.2454 Canadian dollars)

(Reporting by Arunima Kumar in Bengaluru; editing by Uttaresh.V)

((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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