TC Energy posts a quarterly loss of $ 1 billion from the Keystone XL XL suspension

A TC Energy pumping station sits behind mounds of earth from the Keystone XL crude oil pipeline, which is idle near Oyen, Alberta, Canada on February 1, 2021. REUTERS / Todd Korol

May 7 (Reuters) – TC Energy Corp (TRP.TO) posted a loss in the first quarter and suffered $ 2.2 billion (US $ 1.81 billion) in impairment losses related to the suspension of its Keystone XL project, said the Canadian pipeline operator on Friday.

The KXL pipeline was supposed to transport 830,000 barrels of heavy crude oil across the Alberta-Nebraska border every day, but US President Joe Biden revoked an important permit for the project on his first day in office.

TC Energy said the impairment was related to the cessation of work on KXL and a re-evaluation of related projects such as the Heartland Pipeline.

“We were very disappointed with the decision in January to revoke the presidential authorization,” said Chief Executive Francois Poirier on a conference call, adding that the company had “good opportunities” in other areas of its business.

Calgary-based TC Energy owns the largest natural gas pipeline network in North America as well as the existing Keystone oil pipeline and energy and storage facilities.

The company recorded a loss of $ 2.51 billion from its oil pipelines, of which Keystone was the largest contributor, compared to a profit of $ 411 million for the same period last year.

For the three months ended March 31, the company recorded a net loss of $ 1.1 billion, or $ 1.11 per share, attributable to shareholders, compared to earnings of $ 1.1 billion a year earlier.

Without items, the company earned $ 1.16 per share, slightly better than its average analyst estimate of $ 1.10, according to data from Refinitiv IBES.

TC Energy’s shares closed 0.2% at $ 61.94 on the Toronto Stock Exchange.

($ 1 = 1.2176 Canadian dollars)

Adaptation by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

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