UPDATE 2-TC Energy eyes growth in natural gas, power and storage businesses
(Updates with details from conference call)
By Arathy S Nair and Nia Williams
CALGARY, Alberta, Feb 18 (Reuters) - Canada's TC Energy Corpreported a 13% rise in fourth-quarter comparable profiton Thursday, and said it sees significant opportunities ingrowing its natural gas and power and storage businesses.
The Calgary-based company is the owner of the Keystone XL(KXL) oil pipeline project, which was effectively killed lastmonth when new U.S. President Joe Biden revoked a key permit forthe project, which was under construction.
Chief Executive François Poirier said TC Energy wasdisappointed with the KXL decision but stressed the company hada "large and diversified asset base."
TC Energy owns North America's largest natural gas pipelinesystem, power and storage assets and the existing Keystone oilpipeline. Demand for natural gas, which can be used instead ofmore carbon-intensive coal for electricity, is growing as morecountries focus on tackling climate change.
"Our goal is to be able to prosper irrespective of how theenergy mix evolves over time," Poirier told analysts on anearnings call.
TC Energy said capital spending would total C$7 billion thisyear. The company expects to record a large non-cash charge inits first-quarter earnings due to the KXL permit cancellation,but did not give further details.
TC Energy is also building the Coastal GasLink pipeline inBritish Columbia, and reiterated that project costs willincrease significantly due to permit delays and the impacts ofthe COVID-19 pandemic.
Earnings from the company's U.S. and Canadian natural gaspipelines rose more than 9% each in the quarter ended Dec. 31,partly helped by lower operating costs for the U.S. pipelines.
Comparable quarterly earnings rose to C$1.1 billion ($867.30million), or C$1.15 per share, from C$970 million, or C$1.03 pershare, a year earlier.($1 = 1.2683 Canadian dollars)(Reporting by Nia Williams; Editing by Cynthia Osterman)
