TC Energy logged a rise in second-quarter earnings after natural gas flows increased across its pipelines in Canada and the U.S.
The Canadian energy company on Thursday reported income attributable to shareholders of 987 million Canadian dollars (US$702.6 million), or C$0.95 a share, compared with C$833 million, or C$0.80, in the same period a year earlier.
Comparable earnings before interest, taxes, depreciation and amortization--a measure of profit followed by industry analysts--rose to C$2.95 billion in the quarter from C$2.63 billion last year. That topped the C$2.84 billion mean forecast of analysts polled by FactSet.
Revenue for the three months increased 5.7% to C$3.96 billion, while analysts had penciled in C$3.92 billion.
Natural gas pipeline deliveries in Canada averaged 24.2 billion cubic feet per day in the latest quarter, up 1% on a year earlier. Average daily gas flows in the U.S. were 27 billion cubic feet a day, an increase of roughly 5%, and in Mexico averaged 3.4 billion cubic feet a day, down on a year prior.
TC Energy said it expects to deliver full-year comparable Ebitda at the upper end of a target of between C$11.6 billion and C$11.8 billion.
The company said its footprint in Western Canada, the U.S. Heartland and Mexico positions it to benefit from an expected rise in natural gas demand of roughly 51 billion cubic feet a day from 2025 to 2035, driven by liquefied natural gas exports, gas-fired power generation and industrial growth.
TC Energy operates about 58,000 miles of natural gas pipeline in Canada, the U.S. and Mexico plus seven power-generation facilities, including the Bruce nuclear plant that supplies roughly 30% of the province of Ontario's electricity. The Alberta-based company in May approved a $1.5 billion expansion of its Columbia Gas operation that extends from New York state to the Midwest and Southeast.
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