The Calgary-based pipeline operator plans to sell $5 billion worth of assets next year in order to pay off debt and fund new projects.
Chief Executive Francois Poirier stated Tc Energy will look to sell off non-core assets and minority interests to help finance its larger expansion goals without taking on a significant amount of debt during a conference call to discuss third quarter financial results on Wednesday.
Poirier said, “We Are Opportunity Rich.”
“And Being Opportunity Opportunity-Rich Means We Expect for SANCTION ADDITIONAL HIGH-QUALITY GROWTH PROJECTS THAT WILL FURTER DIFFERENTIATE TC ENERGY AS AN INDUSTRY LEADER. Therefore, we must balance our capital sources and uses without depending too heavily on external equity.
” Poirier Declined to Provide Specifics Around Which Assets Could Be Up for Sale, Though He Said That The Greenhouse Gas emissions Profile of Individual Assets Will Be A Factor As The Company Seeks to Reduces ITS Carbon Footprint.
Additionally, I have stated that a divestiture programme will enable Tc Energy to move more quickly toward its goals of reducing emissions by 30% by 2030 and achieving net-zero greenhouse gas emissions by 2050.
The Company is Exploreing A Carbon Capture Transportation and Sequestration System in Partnership with Pembina Pipeline Corp. , and Also Has A Partnership with Irving Oil to Explore the Development of Low-Carbon Hydrogen Opportunities.
Poirier claimed on Wednesday that the Federal Fall Economic Statement from last week, which committed government support for the advancement of clean technologies as well as a new tax credit for hydrogen development, had convinced him of something.
Poirier stated, “We Have Been Working Very Hard To Develop Our Capabilities in Sub of These New Low-Carbon Areas. It is obvious that the incentives offered by the United States and Canada will increase the number of opportunities for our low-carbon businesses.
According to TC Energy’s third-quarter profit report released on Wednesday, it increased year over year as its revenue increased by more than 15%.
The Company Said It Earned Net Inometribusable to Common Shares of $ 841 Million Or 84 Cents Per Share for the Quarter Ended Sept. 30, UP From $ 779 Million Or 80 Cents Per Share A Year Earlier.
Nearly $ 3. 80 billion in revenue was generated during the quarter, compared to $ 3. 24 billion during the third quarter of 2021.
During the Quarter, Tc Energy Resolved A Long-Standing dispute with lng canada over projected cost overruns for the coastal gasLink Pipeline Project, which Tc tc is Building to Ship Natural Gas To The Lng Canada Export Terminal Currently Under Construction Near Kitimat, B. C.
The New Total Cost Estimate for Coastal Gaslink, up from $6.6 billion, is reflected in the Revised Project Agreements.
The development of new natural gas infrastructure in central and southeast Mexico was announced by TC Energy in August as part of a strategic alliance with Mexico’s state-owned electric utility.
A 715-KM offshore natural gas pipeline called the Southeast Gateway Pipeline will be built by TC Energy as a result of that agreement to serve Mexico’s southeast. That Project is estimated to cost US $ 4. 5 billion, and be complete by MID-2025..
TC Energy plans to sell $5 billion worth of assets in 2023 to raise money for upcoming projects.
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