TC Energy(US:TRP)2025-11-06 13:25Financial Performance - Revenues for the three months ended September 30, 2025, increased to CAD 3,704 million, up 10.3% from CAD 3,358 million in the same period of 2024[1] - Net income for the three months ended September 30, 2025, was CAD 764 million, a decrease of 53.8% compared to CAD 1,651 million in the same period of 2024[4] - For the three months ended September 30, 2025, net income attributable to controlling interests was CAD 637 million, a decrease of 57% compared to CAD 1,483 million in the same period of 2024[14] - Net income attributable to common shares for Q3 2025 was CAD 609 million, compared to CAD 1,457 million in Q3 2024, reflecting a decrease of 58%[41] - The company reported a net income from continuing operations of CAD 968 million for Q3 2025, down from CAD 1,483 million in Q3 2024, a decline of 34.5%[41] Operational Metrics - Cash generated from operations for the nine months ended September 30, 2025, was CAD 5,452 million, down 2.8% from CAD 5,612 million in the same period of 2024[8] - Operating expenses for the three months ended September 30, 2025, totaled CAD 2,121 million, an increase of 6.5% from CAD 1,991 million in the same period of 2024[1] - Operating costs for Q3 2025 were CAD 1,420 million, compared to CAD 1,363 million in Q3 2024, reflecting an increase of 4.2%[41] - The company recognized a net cash provided by operations of CAD 12 million for the three months ended September 30, 2025, a significant decrease from CAD 534 million in 2024[33] Assets and Liabilities - Total assets as of September 30, 2025, were CAD 120,234 million, an increase from CAD 118,243 million as of December 31, 2024[11] - Long-term debt as of September 30, 2025, was CAD 44,364 million, a slight decrease from CAD 44,976 million as of December 31, 2024[11] - The accumulated deficit at the end of the period increased to CAD (6,026) million from CAD (2,378) million year-over-year[14] - Total equity decreased to CAD 37,576 million as of September 30, 2025, down from CAD 40,477 million in 2024[14] Dividends - The company declared dividends on common shares amounting to CAD 885 million for the three months ended September 30, 2025, compared to CAD 996 million in the same period of 2024[8] - TC Energy declared a quarterly dividend of CAD 0.85 per common share for Q3 2025, down from CAD 0.96 in Q3 2024, and CAD 2.55 for the nine months ended September 30, 2025, compared to CAD 2.88 in the same period last year[9] Discontinued Operations - The company reported a net loss from discontinued operations of CAD 204 million for the three months ended September 30, 2025, compared to a net income of CAD 119 million in the same period of 2024[1] - Revenues from discontinued operations were CAD 0 for the three months ended September 30, 2025, compared to CAD 725 million in the same period of 2024[31] - The spinoff of the Liquids Pipelines business resulted in a net loss from discontinued operations of CAD (204) million for the three months ended September 30, 2025[35] Capital Expenditures - Capital expenditures for Q3 2025 totaled CAD 1,255 million, up from CAD 1,673 million in Q3 2024, indicating a decrease of 25%[41] - Capital projects in development for Q3 2025 included CAD 2 million, compared to CAD 8 million in Q3 2024, indicating a decrease of 75%[41] - Capitalized interest for the nine months ended September 30, 2025, was CAD 7 million, significantly lower than CAD 200 million in 2024[70] Tax and Regulatory Matters - The effective income tax rate increased to 22% for the nine months ended September 30, 2025, compared to 16% in 2024, primarily due to foreign exchange exposure and higher flow-through income taxes[65] - The company is currently assessing the impact of new accounting standards effective January 1, 2025, which will enhance income tax disclosures[26] Other Comprehensive Income - The company reported other comprehensive income of CAD 424 million for Q3 2025, a significant recovery from a loss of CAD 273 million in Q3 2024[78][79] - For the nine months ended September 30, 2025, TC Energy recorded a total other comprehensive loss of CAD 682 million, compared to a gain of CAD 502 million in the same period of 2024[81] Credit Risk and Derivatives - TC Energy's exposure to counterparty credit risk includes cash and cash equivalents, accounts receivable, and derivative assets, with a focus on monitoring creditworthy entities[89][90] - The company reported no significant credit losses or concentrations of credit risk as of September 30, 2025[94] - The fair value of derivative instrument assets at September 30, 2025, was CAD 516 million, with liabilities totaling CAD (529) million, resulting in a net liability of CAD (13) million[127] Strategic Initiatives - The Southeast Gateway pipeline was completed in Q2 2025, contributing to the company's strategic initiatives in the energy sector[92] - The strategic alliance with CFE resulted in a cash and non-cash consideration of CAD 561 million (USD 411 million) for a 13.01% equity interest in TGNH[140]