TC Energy reports $1.1B net loss after $2.2B writedown on Keystone XL

TC Energy Corp. is reporting a first-quarter net loss of $1.1 billion after taking a $2.2-billion after-tax asset impairment charge on its cancelled Keystone XL export oil pipeline.

It says the impairment charge doesn’t yet include the government of Alberta’s investment and guarantees for the project, which are expected to eventually reduce the company’s net exposure to about $1 billion.

Keystone XL was suspended after newly elected U.S. President Joe Biden fulfilled a campaign promise to cancel its presidential permit in January.

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Since then, shippers including Cenovus Energy Inc., Suncor Energy Inc. and Imperial Oil Ltd. have reported non-cash writedowns on earnings related to their commitments to it.

In its quarterly report, TC Energy said comparable earnings without the charge were $1.108 billion or $1.16 per share, down from $1.109 billion or $1.18 per share in the year-earlier period.

It says revenue was $3.38 billion, down from $3.42 billion in the first quarter of 2020.

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“While we were very disappointed by the revocation of the presidential permit for Keystone XL and the resulting after-tax impairment charge, we are well positioned to deliver sustainable, high-quality growth in the years ahead,” said CEO Francois Poirier in a news release.

“We are advancing a $20-billion secured capital program and working on a substantive portfolio of other similarly high-quality opportunities under development.”