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

Click to play video: 'Kenney thanks U.S. states launching legal action against cancellation of Keystone XL' Kenney thanks U.S. states launching legal action against cancellation of Keystone XL
Alberta Premier Jason Kenney says he thanks the U.S. states that have launched a legal challenge against the Biden administration’s cancellation of the Keystone XL pipeline. – Mar 18, 2021

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.

Read more: Most Canadians, including most Albertans, appear to be ready to give up on Keystone XL pipeline: poll

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

Click to play video: 'Trudeau ‘disappointed’ with Biden’s decision to block Keystone XL, says relationship with U.S. is bigger than one issue' Trudeau ‘disappointed’ with Biden’s decision to block Keystone XL, says relationship with U.S. is bigger than one issue
Trudeau ‘disappointed’ with Biden’s decision to block Keystone XL, says relationship with U.S. is bigger than one issue – Jan 22, 2021

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.

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Read more: Biden revokes presidential permit for Keystone XL pipeline expansion on 1st day

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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Political scientist Duane Bratt weighs in on Kenney’s Keystone XL compensation request – Jan 23, 2021

“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.

Read more: Alberta premier calls for compensation amid cancellation of Keystone XL

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

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