TC Energy(US:TRP)2025-07-31 12:25Financial Performance - Total revenues for the three months ended June 30, 2025, increased to CAD 3,744 million, up 12.5% from CAD 3,327 million in the same period of 2024[1] - Net income attributable to common shares for the three months ended June 30, 2025, was CAD 833 million, a decrease of 13.5% compared to CAD 963 million in the same period of 2024[1] - Comprehensive income attributable to controlling interests for the six months ended June 30, 2025, was CAD 1,348 million, down from CAD 2,625 million in the same period of 2024[5] - For the three months ended June 30, 2025, net income attributable to controlling interests was CAD 861 million, a decrease of 13.0% from CAD 990 million in the same period of 2024[14] - For the six months ended June 30, 2025, total revenues were CAD 7,367 million, compared to CAD 6,836 million in 2024, indicating a year-over-year increase of 7.8%[56][58] Operational Metrics - Cash generated from operations for the six months ended June 30, 2025, was CAD 3,532 million, down 4.5% from CAD 3,697 million in the same period of 2024[7] - Operating costs for Q2 2025 were CAD 1,449 million, compared to CAD 1,331 million in Q2 2024, an increase of 8.9%[37] - Capital expenditures for the first half of 2025 totaled CAD 2,669 million, up from CAD 2,868 million in the same period of 2024, indicating a decrease of 6.9%[44] - The company reported a net income from continuing operations of CAD 2,177 million for the first half of 2025, compared to CAD 2,172 million in the same period of 2024, reflecting a marginal increase[44] Assets and Liabilities - Total assets as of June 30, 2025, were CAD 116,837 million, a decrease from CAD 118,243 million as of December 31, 2024[11] - Long-term debt as of June 30, 2025, was CAD 43,340 million, slightly down from CAD 44,976 million as of December 31, 2024[11] - The accumulated deficit increased to CAD (5,741) million as of June 30, 2025, compared to CAD (2,839) million at the end of June 2024[14] - Total equity decreased to CAD 37,380 million as of June 30, 2025, down from CAD 40,494 million at the end of June 2024[14] Discontinued Operations - The company reported a net loss from discontinued operations of CAD 29 million for the three months ended June 30, 2025, compared to a net income of CAD 159 million in the same period of 2024[1] - Revenues from discontinued operations were CAD 0 for the three months ended June 30, 2025, compared to CAD 758 million in the same period of 2024[31] - Cash provided by operations from discontinued operations was CAD 3 million for the three months ended June 30, 2025, down from CAD 223 million in the same period of 2024[34] Dividends and Shareholder Returns - The company declared dividends on common shares amounting to CAD 883 million for the three months ended June 30, 2025, down from CAD 996 million in the same period of 2024[7] - The company declared a quarterly dividend of CAD 0.85 per common share for the three months ended June 30, 2025, down from CAD 0.96 in 2024[72] Investment and Financing Activities - The company’s net cash used in investing activities for the six months ended June 30, 2025, was CAD 3,222 million, compared to CAD 3,538 million in the same period of 2024[7] - Long-term debt issued in the first half of 2025 included CAD 1,000 million in medium-term notes at an interest rate of 4.58% and US$1 billion in senior unsecured notes with rates of 5.44% and 5.96%[66] - Long-term debt repaid during the same period included US$1,000 million in senior unsecured notes at an interest rate of 4.50%[67] Other Comprehensive Income - For the three months ended June 30, 2025, the company reported an Other Comprehensive Loss of CAD 1,058 million, primarily due to foreign currency translation losses of CAD 1,049 million[74] - The six months ended June 30, 2025 also saw an Other Comprehensive Loss of CAD 1,106 million, with significant contributions from foreign currency translation losses of CAD 1,090 million[77] - The company’s total Other Comprehensive Income (Loss) for the three months ended June 30, 2025, included a reclassification of CAD 38 million from AOCI[80] Risk Management - The company has implemented strategies to manage market risk and counterparty credit risk, which are critical for maintaining shareholder value[84] - The company recorded an expected credit loss (ECL) provision expense of CAD 106 million for the three months ended June 30, 2025, compared to a recovery of CAD 3 million in the same period of 2024[88] - As of June 30, 2025, the balance of the ECL provision was CAD 163 million, a significant increase from CAD 59 million at December 31, 2024[89] Legal and Regulatory Matters - Coastal GasLink LP claims damages of approximately $560 million against Macro Spiecapag Coastal GasLink Joint Venture for delays and costs, while MSJV counterclaims for $480 million[143] - TC Energy's allocated share of damages from the Columbia Pipeline Acquisition lawsuit is estimated at $350 million, but the Delaware Supreme Court reversed the liability finding against TC Energy[145] - The carrying value of guarantees related to Bruce Power and Sur de Texas pipelines is included in Other long-term liabilities, with potential exposure totaling CAD 227 million as of June 30, 2025[149]