TC Energy Reports Third Quarter 2024 Financial Results
TC Energy Corporation (NYSE, TSX: TRP) has announced its financial results for the third quarter of 2024, ending September 30. This report showcases a strong performance, as evident in its key financial metrics and project developments.
Key Financial Metrics
| Metric | Q3 2023 | Q3 2024 | Year-Over-Year Change | Consensus Estimates |
|---|---|---|---|---|
| Comparable Earnings | $1.0 billion | $1.1 billion | +10% | N/A |
| Comparable Earnings Per Share | $1.00 | $1.03 | +3% | $0.71 |
| Net Income Attributable to Common Shares | -$0.2 billion | $1.5 billion | N/A | N/A |
| Comparable EBITDA | $2.6 billion | $2.8 billion | +7.7% | N/A |
Professional Interpretation: TC Energy has shown substantial improvement in its financial metrics with a notable increase in comparable earnings and EBITDA. The year-over-year growth reflects strong asset performance and operational efficiency, particularly in light of achieving earnings per share significantly above consensus estimates.
Key Developments and Operational Highlights
- Successful spinoff of the Liquids Pipelines business as South Bow Corporation.
- Reduction in outstanding long-term debt by approximately $7.6 billion.
- Southeast Gateway pipeline project capital cost estimate reduced by 11%.
- Completion of $1.6 billion in asset divestitures, including the Portland Natural Gas Transmission System.
Officer Commentary
François Poirier, President and CEO, emphasized the company's strategic focus on safety, operational excellence, and disciplined capital management. He highlighted the significant progress made on the Southeast Gateway pipeline, anticipating its in-service by mid-2025, and expressed confidence in TC Energy's ability to deliver solid growth and reliable performance through an expanding market for natural gas.
Dividend Announcement
TC Energy declared a quarterly dividend of $0.8225 per common share for the quarter ending December 31, 2024, aligning with its target for sustained dividend growth.
Forward Guidance
TC Energy expects its 2024 comparable EBITDA to be at the high end of its $11.2 to $11.5 billion forecast range, anticipating net capital expenditures to fall around $7.4 to $7.7 billion due to efficient project execution.
Stock Price Movement
Following the earnings announcement, TC Energy's stock observed a 1.88% increase, indicating a positive market response to the financial results and strategic initiatives.
These financial results underscore TC Energy's steady progress and strategic advancements, projecting a robust outlook for sustained growth and shareholder value.
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