Summary
- Power segment profit falls 30% on repairs at Bruce Power nuclear reactor
- TC Energy announces new gas and nuclear projects worth C$2.4 billion
- Company’s US-listed shares drop 4%
May 1 (Reuters) – Canadian pipeline operator TC Energy on Thursday missed analysts’ estimates for first-quarter profit on weakness in its power and energy solutions business, while higher interest expenses offset gains in its natural gas operations.
The company’s U.S.-listed shares were down 4%.
With energy demand growing across North America, demand for renewable and lower-emission electricity is also set to rise. TC Energy has invested in 10 power-generation facilities with a combined generating capacity of about 4,600 megawatts.
However, adjusted core profit for the company’s power and energy solutions business fell 30% to C$224 million in the first quarter, hurt by a unit of the Bruce Power nuclear reactor going offline for repairs.
Bruce Power, partly owned by TC Energy, supplies 30% of Ontario’s electricity.
Despite the results, TC Energy remains bullish on power demand growth and announced new natural gas and nuclear electricity generation projects worth C$2.4 billion.
The company, which last year spun off its oil pipeline business to pursue a natural gas-focused strategy, has forecast natural gas demand in North America to grow by 40 billion cubic feet per day over the next decade.
On an adjusted basis, Calgary-based TC Energy earned C$0.95 per share for the three months ended March 31, compared with analysts’ average expectation of C$0.97, according to data compiled by LSEG.
Reporting by Mrinalika Roy in Bengaluru; Editing by Shounak Dasgupta
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