TC Energy Q4 Profit Falls, Dividend Raised

TC Energy (TSE: TRP) (NYSE: TRP) reported lower fourth-quarter profits. The North American energy infrastructure company was hit by C$60 million in charges related to the scrapping of its Keystone XL pipeline.

Q4 2021 Results

Net income attributable to common shares fell to C$1.12 billion (C$1.14 per share) in the three months ended December 31, from C$1.12 billion (C$1.20 per share) in the prior-year quarter.

The company posted earnings of C$1.06 per share, down from C$1.15 in the year-ago quarter.

TC’s Keystone XL pipeline, which was to transport 830,000 barrels per day of heavy crude from the Canadian province of Alberta to Nebraska in the United States, was scrapped in 2021 after the United States canceled a key permit.

TC Energy also declared a quarterly dividend of C$0.90, equivalent to C$3.60 per common share on an annualized basis, an increase of 3.4%. This is the 22nd consecutive year of dividend increases.

CEO Commentary

TC Energy president and CEO François Poirier said, “Our C$100 billion diversified portfolio of high-quality, long-life energy infrastructure assets continued to perform extremely well in 2021 as evidenced by our strong financial results. Comparable earnings of C$4.2 billion or C$4.27 per common share and comparable funds generated from operations of C$7.4 billion reflect the strong demand for our services, contributions from new assets placed into service and our constant focus on operational excellence.”

Wall Street’s Take

On February 14, Scotiabank analyst Robert Hope kept a Buy rating on TRP and raised its price target to C$72 (from C$69). This implies 8.5% upside potential.

The rest of the Street is cautiously optimistic about TRP, with a Moderate Buy consensus rating based on six Buys, six Holds, and one Sell. The average TC Energy price target of C$68.06 implies 2.1% upside potential to current levels. 

TipRanks’ Smart Score 

TC Energy scores a 5 out of 10 on the TipRanks Smart Score rating system, indicating that the stock is likely to perform in line with the overall market.

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