Ebene News – United States – TC Energy Reports $ 1 Billion Net Loss After $ 2 Billion Writedowns on Keystone XL

CALGARY – TC Energy Corp Reports First Quarter Net Loss of $ 1 Billion After Taking on a $ 2 Billion After-Tax Asset Depreciation Charge on Its Canceled Keystone XL Export Pipeline

The charge is net of expected cash recoveries from contracted shippers and a sale of recoverable pipeline assets, but will eventually be reduced by recoveries from the Government of Alberta on investments and loan guarantees for the project, the Calgary-based company said

“On Keystone, we were very disappointed with the decision taken in January to revoke the presidential license,” CEO François Poirier said on a conference call to discuss first quarter results on Friday.

“Following this decision, we subsequently agreed with our partner, the Government of Alberta, to officially suspend the project and assessed our investment for depreciation. These costs will be shared with our partner, reducing our net financial exposure as at March 31 to approximately $ 1 billion.”

TC Energy said the charge includes the depreciation of related projects in development such as the Heartland pipeline, TC terminals and the Keystone Hardisty terminal

Extension of the Keystone XL to an existing pipeline system would have increased Canadian oil export capacity to 830,000 barrels per day It was suspended after newly elected U President Joe Biden kept his campaign promise cancel his presidential license

TC Energy decided to begin construction on Keystone XL in March 2020 after the Alberta government agreed to take a $ 5 billion equity investment and offers a $ 6 billion loan guarantee for guarantee the immediate start of work

In recent quarterly earnings reports, shippers including Cenovus Energy Inc, Suncor Energy Inc and Imperial Oil Ltd reported earnings write-downs related to their commitments to Keystone XL

TC Energy’s impairment charge has been reduced by approximately $ 700 million in expected recoveries from shippers and a few hundred million dollars expected from the sale of Keystone XL assets, said CFO Don Walking on the call, adding that the project’s liquidation costs are around $ 500 million

Poirier hailed as “a step in the right direction” the recent commitment of the Canadian government to offer tax incentives to encourage the use of carbon capture and storage programs

“The energy mix of the future will evolve with renewables, for example, constituting a larger part of the energy mix,” he said

“Our aim is to build on our long history of success and not know what form of energy will ultimately lead to a low carbon energy future”

TC Energy recently launched a call for proposals to provide 620 megawatts of wind power to meet the electricity needs of a portion of its US pipeline assets along its US corridor

He plans to also launch a solar supplier alignment process later this month, said Corey Hessen, president of energy and storage.

In its quarterly report, TC Energy said comparable profit without the depreciation of Keystone XL was $ 1.18 billion or $ 1.16 per share, compared to $ 1.19 billion or $ 1.18 per share during the period of the previous year

It indicates that revenues were $ 3.38 billion, compared to $ 3.42 billion in the first quarter of 2020

TC Energy, Keystone Pipeline, Pipeline transport, NYSE: TRP, Natural gas

Ebene News – United States – TC Energy reports $ 1 Net loss of $ 1 billion after $ 2 2 billion of depreciation on Keystone XL

Source: https://www.moosejawtoday.com/national-business/tc-energy-reports-11-billion-net-loss-after-22-billion-writedown-on-keystone-xl-3759747