TC Energy Earnings
In the fourth quarter of 2024, TC Energy Corporation reported financial results signaling strategic shifts and a renewed focus on foundational business streams. Amidst these changes, there is evidence of strong operational execution despite some financial headwinds stemming from restructuring activities. The company's earnings reveal both challenges and strengths as they navigate through transformative decisions, including the spinoff of their Liquids Pipelines business.
Key Financial Metrics (in Canadian Dollars)
| Metric | Q4 2024 | Q4 2023 | YoY Change |
|---|---|---|---|
| Comparable Earnings | $1.1 billion | $1.2 billion | -8.3% |
| Earnings per Common Share | $1.05 | $1.15 | -8.7% |
| Net Income Attributable to Common Shares | $1.1 billion | $1.2 billion | -8.3% |
| Net Earnings per Common Share | $1.03 | $1.20 | -14.2% |
| Comparable EBITDA | $2.6 billion | $2.7 billion | -3.7% |
| Segmented Earnings | $1.9 billion | $2.0 billion | -5% |
The results from the quarter indicate an overall decline year-over-year in several key metrics, with earnings per share dropping to $1.05 from $1.15. This is primarily attributed to the financial impacts of the organizational changes, including the spinoff of non-core segments.
TC Energy Results
TC Energy's Q4 figures show resiliency in their core natural gas businesses, overshadowing some of the earnings contractions. A focal point is the company's $1.1 billion in comparable earnings and a $2.6 billion comparable EBITDA, which still underline the company's robust financial foundation.
Key Developments
This quarter highlighted several strategic and operational milestones:
- Successful completion of the Southeast Gateway pipeline project, 13% under budget.
- Coastal GasLink pipeline became operational, with toll collections retroactively applied from October 1, 2024.
- Record-breaking results with U.S. Natural Gas Pipelines at 37.9 Bcf on January 20, 2025.
- Bruce Power achieved exceptional operational efficiency with 99% availability.
- Initiated the Major Component Replacement (MCR) program for Bruce Power’s Unit 4.
Comments from Company Officers
François Poirier, CEO of TC Energy, asserted that 2024 was a hallmark year for the company in terms of realigning their strategic priorities around safety and efficiency. Poirier reflected on the successful and budget-conscious execution of the Southeast Gateway project as a demonstration of TC Energy's tactical prowess. Looking ahead, he emphasized positioning the company to leverage growing demand across the North American natural gas markets.
Dividends and Share Repurchases
Reflecting the company's commitment to shareholder returns, TC Energy announced a 3.3% increase in its quarterly dividend, setting the payment at $0.85 per share for the quarter ending March 31, 2025. This marks the 25th consecutive year of dividend growth, indicating resilience and reliability in its distribution policy, equating to an annualized dividend of $3.40 per share.
TC Energy Stock Forecast
Analyzing TC Energy's financial and operational developments, we see a cautiously optimistic scenario for the company's stock trajectory. Following the earnings release, the stock saw a positive shift, with an increase of approximately 1.20%. Given the stability in TC Energy's core operations and the positive momentum from strategic growth initiatives, the stock could potentially be valued between $48 and $52 over the next 12 months. This projection considers the solid foundation of its ongoing projects like the Southeast Gateway pipeline, expected demand increases, current stock trends, and market cap considerations standing at approximately CAD 39.995 billion.
As TC Energy advances into 2025, they remain poised to not only find firm footing after their recent transformations but also to accelerate growth by capitalizing on the burgeoning demand for natural gas across North America.
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