Tc Energy Corporation ((TSE:TRP)) has held its Q4 earnings call. Read on for the main highlights of the call.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
TC Energy Corporation’s recent earnings call revealed a robust performance in 2024, characterized by significant achievements in safety, asset management, and project execution. Despite facing financial hurdles such as increased interest expenses and foreign exchange impacts, the overall sentiment was positive, buoyed by growth in EBITDA, successful project completions, and increased dividends.
Best Safety Performance
TC Energy reported its best safety performance in the past five years, which significantly contributed to its strong operational and financial results. This achievement underscores the company’s commitment to maintaining high safety standards, which is critical in ensuring continued efficiency and reliability.
EBITDA Growth
The company experienced a 6% increase in comparable EBITDA from continuing operations in 2024 compared to 2023. This growth highlights TC Energy’s strategic operational improvements and effective management, which have been pivotal in enhancing profitability.
Asset and Capital Reductions
In 2024, TC Energy successfully placed $7 billion worth of assets into service and achieved a 10% reduction in net capital expenditures. These efforts reflect the company’s strategic focus on optimizing capital deployment and improving financial flexibility.
Southeast Gateway Project Success
The Southeast Gateway project was delivered 13% below the original budget, reaching mechanical completion. This success demonstrates TC Energy’s capability in executing large-scale projects efficiently and cost-effectively.
Bruce Power Unit 3 On Track
Bruce Power’s Unit 3 Major Component Replacement (MCR) is progressing according to cost and schedule, reinforcing the company’s reputation for effective project management and execution.
Record EBITDA and Dividend Growth
TC Energy achieved a record EBITDA from continuing operations of over $10 billion in 2024, alongside a 3.3% increase in the quarterly dividend. This growth reflects the company’s strong financial performance and its commitment to returning value to shareholders.
Interest Expense and Earnings Impact
The fourth quarter of 2024 saw an 8% decline in comparable earnings from the previous year, primarily due to higher interest expenses and other financial factors. This impact highlights the challenges posed by the current financial environment.
Exchange Rate Impact
The year-end 2024 leverage metric was influenced by foreign exchange rates, resulting in a 4.8 times debt to EBITDA ratio. Despite this, TC Energy made progress in its deleveraging efforts, showcasing resilience amidst currency fluctuations.
Forward-Looking Guidance
Looking ahead, TC Energy has set ambitious goals, including a 2025 comparable EBITDA outlook of $10.7 billion to $10.9 billion, representing a 7% to 9% year-over-year increase. The company plans additional capital reductions of $1.3 billion for 2026 and 2027. These strategic initiatives are expected to further strengthen TC Energy’s financial position and support sustained growth.
In conclusion, TC Energy Corporation’s 2024 earnings call painted a picture of a company poised for continued success, thanks to solid operational performance, strategic financial management, and a commitment to safety and shareholder value. The positive sentiment and key takeaways from this call reinforce confidence in TC Energy’s future prospects.
