(Reuters) – Canadian pipeline operator TC Energy raised its full-year adjusted core earnings forecast on Thursday, driven by increased natural gas and power demand and strength in its North America operations.
In May, TC Energy said it is forecasting an uptick in capital project announcements later this year and into the next, as coal-to-gas conversions and data center growth drive natural gas demand in North America.
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“We expect to place approximately C$8.5 billion of capital projects into service this year, on time and are tracking approximately 15 per cent below budget,” said CEO François Poirier.
The company’s total quarterly revenue rose 12% to C$3.74 billion ($2.70 billion), supported by higher adjusted core earnings from Mexican, Canadian and U.S. natural gas pipelines.
Its power and energy solutions business reported an adjusted core profit of C$301 million in the second quarter, up 32.6% from a year ago.
TC Energy operates a 58,100 mile-long network of pipelines, supplying more than 30% of the clean-burning natural gas consumed daily across North America.
In the previous quarter, the company had said it sees its greatest opportunity in the U.S., where it has a significant presence in jurisdictions like the U.S. Midwest and Virginia, where there are large clusters of data centers under development.
The Calgary, Alberta-based company raised its 2025 adjusted core profit forecast to a range of C$10.8 to C$11.0 billion compared to its previous outlook of C$10.7 to C$10.9 billion.
On an adjusted basis, the company earned 82 Canadian cents per share for the three months ended June 30, beating analysts’ average expectation of 78 Canadian cents, according to data compiled by LSEG.
Reporting by Pooja Menon in Bengaluru; Editing by Shailesh Kuber
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