Le Lézard
Classified in: Business
Subjects: EARNINGS, CALENDAR OF EVENTS, v

TC Energy reports record 2019 financial results


CALGARY, Alberta, Feb. 13, 2020 (GLOBE NEWSWIRE) -- TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) today announced net income attributable to common shares for fourth quarter 2019 of $1.1 billion or $1.18 per share compared to net income of $1.1 billion or $1.19 per share for the same period in 2018. For the year ended December 31, 2019, net income attributable to common shares was $4.0 billion or $4.28 per share compared to net income of $3.5 billion or $3.92 per share in 2018. Comparable earnings for fourth quarter 2019 were $970 million or $1.03 per common share compared to $946 million or $1.03 per common share for the same period in 2018. For the year ended December 31, 2019, comparable earnings were $3.9 billion or $4.14 per common share compared to $3.5 billion or $3.86 per common share in 2018. TC Energy's Board of Directors also declared a quarterly dividend of $0.81 per common share for the quarter ending March 31, 2020, equivalent to $3.24 per common share on an annualized basis, an increase of eight per cent. This is the twentieth consecutive year the Board has raised the dividend.

"We are very pleased with the performance of our diversified portfolio of regulated and long-term contracted assets which generated record financial results again in 2019," said Russ Girling, TC Energy's President and Chief Executive Officer. "Despite significant asset sales that accelerated the strengthening of our balance sheet, comparable earnings per share increased seven per cent compared to 2018 while comparable funds generated from operations of $7.1 billion were nine per cent higher. The increases reflect the strong performance of our legacy assets and contributions from approximately $8.7 billion of growth projects that entered service in 2019. Those increases were partially offset by lower contributions from approximately $3.4 billion of assets that were monetized during the year."

TC Energy exited 2019 having attained targeted credit metrics and in a position to fund its $30 billion portfolio of secured growth projects without the issuance of additional common shares. The Company's strong financial position will be further bolstered by the completion of pending portfolio management and project financing expected in the first half of 2020.

In July 2019, the Company entered into an agreement to sell its Ontario natural gas-fired power plants including Napanee, Halton Hills and a 50 per cent interest in Portlands Energy Centre for approximately $2.87 billion. The transaction is anticipated to close by the end of first quarter 2020.

In December 2019, the Company also entered into an agreement to sell a 65 per cent equity interest in its $6.6 billion Coastal GasLink Pipeline Project. Under the terms of the sale, TC Energy will receive upfront proceeds that include reimbursement of its partners' proportionate share of the project costs incurred to the date of close as well as additional payment streams through construction and operation of the pipeline. Concurrent with the sale, the Company expects that Coastal GasLink will finalize a secured construction credit facility with a syndicate of banks to fund up to 80 per cent of the project's capital expenditures during construction. Both transactions are expected to close in the first half of 2020 and substantially satisfy the Company's funding requirements through project completion. TC Energy will continue to be responsible for constructing and operating the pipeline.

"Over the past several years, we have taken significant steps to high-grade our asset base through organic growth, acquisitions and divestitures, as well as return our balance sheet to its position of historical strength," added Girling. "The Company's footprint is comprised of irreplaceable corridors of critical energy infrastructure that are expected to contribute to the continuous replenishment of our growth portfolio in the years ahead. Management remains focused on further enhancing the quality and longevity of the Company's earnings and cash flow profile by seeking to turn our remaining merchant revenues into contracted annuity streams as well as increase regulatory certainty through long-term settlements with our customers."

Looking forward, TC Energy will continue to progress more than $20 billion of projects under development including Keystone XL and the Bruce Power life extension program. Success in advancing these and other organic growth opportunities emanating from our five operating businesses across North America, along with our $30 billion secured capital program, is expected to support annual dividend growth of eight to 10 per cent in 2021 and five to seven per cent thereafter.

Highlights
(All financial figures are unaudited and in Canadian dollars unless otherwise noted)

Net income attributable to common shares for the three months ended December 31, 2019 was $1.1 billion or $1.18 per share compared to $1.1 billion or $1.19 per share for the same period last year. For the year ended December 31, 2019, net income attributable to common shares was $4.0 billion or $4.28 per share compared to $3.5 billion or $3.92 per share in 2018. Per share results reflect the dilutive impact of common shares issued under our Corporate At-The-Market (ATM) program in 2018 and under our DRP. Net income attributable to common shares includes a number of specific items that we believe are significant but not reflective of our underlying operations in the period. More information on these items which are excluded from comparable earnings can be found in the table entitled "Reconciliation of net income to comparable earnings" later in the document.

Comparable EBITDA decreased by $138 million to $2.3 billion for the three months ended December 31, 2019 compared to the same period in 2018 primarily due to the net effect of the following:

Comparable earnings increased by $24 million to $970 million for the three months ended December 31, 2019 compared to the same period in 2018 and were primarily due to the net effect of:

Comparable earnings per common share for the three months ended December 31, 2019 was consistent with 2018 at $1.03 and reflects the dilutive impact of common shares issued under our DRP in fourth quarter 2018 and throughout 2019.

Comparable EBITDA in 2019 increased by $803 million to $9.4 billion compared to the same period in 2018 primarily due to the net effect of the following:

Comparable earnings in 2019 increased by $371 million or $0.28 per common share to $3.9 billion or $4.14 per common share compared to 2018 primarily due to the net effect of:

Comparable earnings per share in 2019 and 2018 were impacted by the dilutive impact of common shares issued under our Corporate ATM program in 2018 and under our DRP.

Notable recent developments include:

Canadian Natural Gas Pipelines:

U.S. Natural Gas Pipelines:

Mexico Natural Gas Pipelines:

Liquids Pipelines:

Power and Storage:

Corporate:

Teleconference and Webcast:

We will hold a teleconference and webcast on Thursday, February 13, 2020 to discuss our fourth quarter and year-end 2019 financial results. Russ Girling, President and Chief Executive Officer, Don Marchand, Executive Vice-President, Strategy and Corporate Development and Chief Financial Officer, and other members of the TC Energy executive leadership team will discuss the financial results and Company developments at 2 p.m. MST / 4 p.m. EST.

Members of the investment community and other interested parties are invited to participate by calling 800.478.9326 or 416.340.2219 (Toronto area). Please dial in 10 minutes prior to the start of the call. No pass code is required. A live webcast of the teleconference will be available on TC Energy's website at www.TCEnergy.com/events or via the following URL: www.gowebcasting.com/10492.

A replay of the teleconference will be available two hours after the conclusion of the call until midnight (EST) on February 20, 2020. Please call 800.408.3053 or 905.694.9451 (Toronto area) and enter pass code 8119293#.

The audited annual consolidated financial statements and Management's Discussion and Analysis (MD&A) are available under TC Energy's profile on SEDAR at www.sedar.com, with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov/info/edgar.shtml and on our website at www.TCEnergy.com.

About TC Energy

We are a vital part of everyday life ? delivering the energy millions of people rely on to power their lives in a sustainable way. Thanks to a safe, reliable network of natural gas and crude oil pipelines, along with power generation and storage facilities, wherever life happens ? we're there. Guided by our core values of safety, responsibility, collaboration and integrity, our more than 7,300 people make a positive difference in the communities where we operate across Canada, the U.S. and Mexico.

TC Energy's common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP. To learn more, visit us at TCEnergy.com.

Forward-Looking Information

This release contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). Forward-looking statements in this document are intended to provide TC Energy security holders and potential investors with information regarding TC Energy and its subsidiaries, including management's assessment of TC Energy's and its subsidiaries' future plans and financial outlook. All forward-looking statements reflect TC Energy's beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking information due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the Quarterly Report to Shareholders dated February 12, 2020 and the 2019 Annual Report filed under TC Energy's profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.

Non-GAAP Measures

This news release contains references to non-GAAP measures, including comparable earnings, comparable earnings per common share, comparable EBITDA and comparable funds generated from operations, that do not have any standardized meaning as prescribed by U.S. GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. These non-GAAP measures are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable except as otherwise described in the Annual consolidated financial statements and MD&A. For more information on non-GAAP measures, refer to TC Energy's Annual Report to Shareholders dated February 12, 2020.

Media Inquiries:
Hejdi Carlsen / Jaimie Harding
403.920.7859 or 800.608.7859

Investor & Analyst Inquiries:    
David Moneta / Duane Alexander
403.920.7911 or 800.361.6522

PDF available: http://ml.globenewswire.com/Resource/Download/989bdf60-486c-4d25-86e2-a9b48e1e906e


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