TC Energy increases its core profit forecast for the full year on natural gas and electricity demand

TC Energy, a Canadian pipeline operator, raised its core earnings forecast for the full year adjusted on Thursday due to increased demand for natural gas and electricity and its North America operations.

TC Energy announced in May that it expects a surge in capital projects to be announced later this year or in the following years, due to coal-to gas conversions and growth in data centers driving natural gas demand across North America.

Francois Poirier, CEO of the company, said: "We are on track to deliver capital projects worth C$8.5 billion this year and we are 15 percent below budget."

The company's quarterly total revenue rose by 12%, to C$3.74billion ($2.70billion), largely due to higher core earnings adjusted from natural gas pipelines in Mexico, Canada and the United States.

The company's power and solutions business posted an adjusted core income of C$301m in the second quarter. This is up 32.6% compared to a year earlier.

TC Energy has a 58.100-mile-long pipeline network that supplies more than 30% daily of the natural gas used in North America.

The company said that it saw its biggest opportunity in the U.S. where it has an important presence in jurisdictions such as the U.S. Midwest, and Virginia where large clusters are under development.

Calgary-based Alberta company has raised its adjusted core profit forecast for 2025 to an estimated range of C$10.8 - C$11.0 Billion compared to the previous outlook of C$10.7 – C$10.9 Billion.

According to LSEG, on an adjusted basis the company earned 82 Canadian Cents per share in the three-month period ended June 30. This was higher than the analysts' average estimate of 78 Canadian Cents.

(source: Reuters)