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Calgary-based TC Energy net profits increase to $1.3 billion in Q2 despite lower sales

TransCanada president and CEO Russ Girling addresses the company's annual meeting after shareholders approved a name change to TC Energy in Calgary on May 3, 2019.
TransCanada president and CEO Russ Girling addresses the company's annual meeting after shareholders approved a name change to TC Energy in Calgary on May 3, 2019. THE CANADIAN PRESS/Jeff McIntosh

TC Energy Corp. is reporting higher net profits in the second quarter on asset sales even though revenues decreased.

The Calgary-based company says it earned $1.3 billion or $1.36 per diluted share for the three months ended June 30, up from $1.1 billion or $1.21 per share a year earlier.

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The results included an after-tax gain of $408 million related to the sale of a 65 per cent equity interest in the Coastal GasLink pipeline and an incremental after-tax loss of $80 million due to the Ontario natural gas-fired power plant assets sold in April.

Adjusted profits decreased 6.6 per cent to $863 million or 92 cents per share, in line with analyst forecasts, according to financial markets data firm Refinitiv. That compared with $924 million or $1 per share in adjusted earnings in the second quarter of 2019.

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Revenues dropped 8.4 per cent to $3.09 billion of revenues, from $3.37 billion in the prior year.

TC Energy says its assets have been largely unimpacted by COVID-19 with flows and utilization levels remaining in line with historical and seasonal norms and largely insulated from short-term volatility of commodity prices.