Proactive Investors - TC Energy (TSX:TRP) Corp stock climbed as it reported first-quarter results that saw revenue top estimates and CEO François Poirier affirm that 'multiple' asset sale negotiations are underway as part of the energy pipeline company’s ongoing $5 billion divestment process.
For the period ended March 31, 2023, the Calgary, Alberta-based company reported a profit of $1.31 billion, up from $358 million in the same quarter in 2022. The profit amounted to $1.29 per diluted share, up from a profit of $0.36 per diluted share for the same period a year earlier.
TC Energy’s revenue totaled $3.93 billion, up from $3.5 billion in the 1Q of 2022. The consensus estimate was for profit of $0.89 per share on revenue of $2.7 billion.
Investors reacted to the news, sending TC Energy shares up 2.3% to $41.51 on the New York Stock Exchange in afternoon trade.
“First quarter 2023 results continue to demonstrate the resiliency of our business and our ability to generate sustainable cash flow growth,” said Poirier.
“Our priorities for 2023 are clear — advance our critical energy infrastructure projects and successfully execute our asset divestiture program to accelerate deleveraging objectives.”
TC Energy revealed its divestiture program last fall, saying it would seek to sell off non-core assets to help finance its expansion goals without taking on large amounts of debt.
The Canadian pipeline company has declined to provide specifics on which assets are on the auction block.
“I appreciate there’s lots of interest in our asset sale processes and our deleveraging plan," Poirier told analysts on a post-earnings conference call.
"I would just remind everyone that we are at a very commercially sensitive point in our discussions. We have multiple processes underway at the moment, so we will refrain from making any specific comment on any particular asset or on where valuations are trending."
Meanwhile, TC Energy reaffirmed its 2023 financial outlook with comparable EBITDA expected to be 5% to 7% higher than in 2022.