By Robb M. Stewart

TC Energy revenue and underlying earnings were higher in the first three months of the year, driven by rises across its natural gas pipeline operations in North America.

The Canadian energy company on Thursday recorded income of 978 million Canadian dollars ($708.7 million), or C$0.94 a share, compared with C$1.2 billion, or C$1.16, a year earlier.

The year-go result included C$215 million in earnings from since discontinued operations.

Comparable earnings before interest, tax, depreciation and amortization--a measure of profit followed by industry analysts--came in at C$2.71 billion for continuing operation. That was in line with the mean forecast of analysts polled by FactSet, but up from C$2.67 billion last year.

Three-month revenue was up 3.2% at C$3.62 billion, in line with what analysts had anticipated.

Results for the latest quarter benefited from the rise in the dollar against the Canadian currency, and earnings for TC Energy's gas pipeline operations in Canada, the U.S. and Mexico. That offset a drop in earnings for its power and energy segment after the start of component replacement work at Unit 4 of its Bruce nuclear plant in the province of Ontario.

TC Energy in early October completed its exit from its oil pipeline business, South Bow, to leave it focused on almost 58,000 miles of natural gas pipeline in Canada, the U.S. and Mexico plus seven power-generation facilities, including the Bruce plant that supplies roughly 30% of the province of Ontario's electricity.

Natural gas pipeline deliveries in Canada averaged 27.6 billion cubic feet per day in the latest quarter, up about 8% on a year earlier. Average daily gas pipeline flows in the U.S. were 31 billion cubic feet a day, up 5%, and in Mexico flows were up about 6% to average 3.1 billion.

The company said the $3.9 billion Southeast Gateway marine pipeline in Mexico is now ready for service, which it expects will be in late May. It also has approved Northwoods, an expansion project on its ANR interstate pipeline system designed to boost capacity to meet natural gas-fired electric generation demand in the U.S. Midwest, and it has given the go-ahead for a major component replacement at Unit 5 at Bruce.

In all, TC Energy is looking for about C$8.5 billion of projects to be placed into service in 2025, including the Southeast Gateway pipeline.

For the full year, TC Energy said it continues to expect comparable Ebitda of between C$10.7 billion and C$10.9 billion. The company's capital spending budget for the year remains C$6.1 billion to C$6.6 billion on a gross basis.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

May 01, 2025 07:50 ET (11:50 GMT)

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