Olivia Woods
On Friday, TC Energy Corp. announced that its profit for the first quarter exceeded the predictions of industry analysts, the company also stated that it had taken active steps to sell assets valued at C$5 billion.
The demand for pipelines has increased as a result of the high price of oil, which has fallen by 20% from its peak after Russia’s invasion of Ukraine last year but is still high enough for corporations to produce financial growth.
The average price of a barrel of West Texas Intermediate Crude was $75.75 in the first quarter.
Coastal GasLink pipeline in British Columbia has witnessed significant cost overruns, thus TC plans to sell assets this year to decrease debt and fund new projects.
“We are at a very commercially sensitive point in our discussions,” said CEO Francois Poirier about asset sales. “We have multiple processes underway.”
Poirier has hinted that a lot of TC’s assets are available, but he hasn’t provided many details.
The company reported that its natural gas pipelines in the United States had an average daily flow of 28.5 billion cubic feet, with several reaching near-record levels during peak demand.
According to Refinitiv data, analysts projected earnings of C$1.15 per share for the quarter, however, the company posted similar earnings of C$1.21 per share.
The business said that the Coastal GasLink project was on schedule and within their C$14.5 billion budget. The natural gas pipeline is now 87% complete and will supply Canada’s first LNG export facility.
Original source material for this article taken from here
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