Latest news with #SouthBowCorp
CTV News
4 days ago
- Business
- CTV News
South Bow reports profit of US$96 million in second quarter
Keystone pipeline facilities are seen in Hardisty, Alta., on Friday, Nov. 6, 2015. THE CANADIAN PRESS/Jeff McIntosh CALGARY — Pipeline operator South Bow Corp. says it had a net income of US$96 million in its second quarter, up from US$88 million in the same quarter last year. Calgary-based South Bow says earnings amounted to 46 cents per share in the quarter ending June 30, up from 42 cents last year. On an adjusted basis, its profit worked out to 42 cents per share, up from 34 cents last year, while the mean analyst expectation had been for 34 cents per share this quarter as well, according to LSEG Data & Analytics. The company had average throughput of 544,000 barrels per day on its Keystone pipeline, and 760,000 barrels per day on the U.S. Gulf Coast segment of the Keystone pipeline system. On April 8, the company had an oil spill on its Keystone pipeline near Fort Ransom, N.D., that forced it to shut down the line, but it reopened the line on April 15. It says it completed cleanup of the roughly 3,500-barrel spill in early June, with costs related to the incident totalling US$58 million. --- This report by The Canadian Press was first published Aug. 7, 2025.
Winnipeg Free Press
4 days ago
- Business
- Winnipeg Free Press
South Bow reports profit of US$96 million in second quarter
CALGARY – Pipeline operator South Bow Corp. says it had a net income of US$96 million in its second quarter, up from US$88 million in the same quarter last year. Calgary-based South Bow says earnings amounted to 46 cents per share in the quarter ending June 30, up from 42 cents last year. On an adjusted basis, its profit worked out to 42 cents per share, up from 34 cents last year, while the mean analyst expectation had been for 34 cents per share this quarter as well, according to LSEG Data & Analytics. The company had average throughput of 544,000 barrels per day on its Keystone pipeline, and 760,000 barrels per day on the U.S. Gulf Coast segment of the Keystone pipeline system. On April 8, the company had an oil spill on its Keystone pipeline near Fort Ransom, N.D., that forced it to shut down the line, but it reopened the line on April 15. It says it completed cleanup of the roughly 3,500-barrel spill in early June, with costs related to the incident totalling US$58 million. Monday Mornings The latest local business news and a lookahead to the coming week. This report by The Canadian Press was first published Aug. 7, 2025. Companies in this story: (TSX:SOBO)
Toronto Star
4 days ago
- Business
- Toronto Star
South Bow Reports Second-quarter 2025 Results and Declares Dividend
CALGARY, Alberta, Aug. 06, 2025 (GLOBE NEWSWIRE) — South Bow Corp. (TSX & NYSE: SOBO) (South Bow or the Company) reports its second-quarter 2025 financial and operational results. Unless otherwise noted, all financial figures in this news release are in U.S. dollars. Highlights
National Observer
25-06-2025
- Business
- National Observer
Pipeline companies not committed to new Alberta-BC project, but Smith remains confident
Alberta Premier Danielle Smith has expressed confidence one or more private-sector pipeline operators will come forward with a plan to ship oilsands crude to the Port of Prince Rupert, B.C., and test the federal government's new regime to speed along projects deemed in Canada's national interest. But if pipeline companies are keen on proposing a new West Coast pipeline project in the near future, they're not saying so publicly. "We've been in active conversations with many pipeline companies, and I feel like we're pretty close to having either one or a consortium come forward," Smith told reporters on Tuesday. Enbridge Inc. is Canada's biggest shipper of crude oil with a vast cross-border network. It's also the company behind the scrapped Northern Gateway oilsands pipeline to the B.C. port of Kitimat, south of Prince Rupert and further inland. The company said in a written statement Wednesday that it would explore market-diversifying projects, provided the demand is there from customers. It would also take "real provincial and federal legislative change" around climate policy, regulatory timeliness and Indigenous participation. "We will be there to build what is needed for our shippers, for Alberta and for Canada — that's our job, our mission as a company — but only when the conditions make sense and the right framework is in place," Enbridge said. Alberta Premier Danielle Smith has expressed confidence one or more private-sector pipeline operators will come forward and test the federal government's new regime to speed along projects deemed in Canada's national interest. Meanwhile, South Bow Corp. would only say it "carefully evaluates all opportunities, especially those that complement our current assets and strengthen our existing corridor." South Bow has no infrastructure in B.C. Its Keystone system serves U.S. Midwest and Gulf Coast refineries. The CEO of federally owned pipeline operator Trans Mountain Corp. told reporters earlier this month that his company is among those Smith has spoken to about spearheading a new pipeline. But Mark Maki said "optimizing the existing kit" is a priority over building something new for now. Trans Mountain flows to the B.C. Lower Mainland is currently the only way Alberta producers can meaningfully access Asia-Pacific markets. The new pipeline Smith envisions would ship one million barrels of oil per day, and would be the "anchor tenant" on a corridor that houses other infrastructure. Richard Masson, an executive fellow at the University of Calgary's School of Public Policy, said it's hard to see how Smith can entice a private company to get on board. "She's pushing to be seen to be doing something and to try and take advantage of the mood in the country," he said. "And my concern is that if you only put one option on the table and that option has lots barriers to being realized, you're going to end up with a lot of disappointed people later." For Enbridge, Masson said one stumbling block would be how a potential new West Coast system may affect the economics of its Mainline system, which on any given day is the largest single conduit for Canadian crude flowing by pipeline to the United States. A new pipeline would likely have to be underpinned by decades-long commitments from customers to pay to use it, whereas the Mainline is more flexible, he said. If customers are already locked into paying to use any potential West Coast system, there's more incentive to move crude on that before the Mainline. "That means volumes that would be going down the Enbridge Mainline get pulled off and put on to the new system," Masson said. "So Enbridge seems like an unlikely company unless there is some kind of industry or government support, so that they weren't worse off on the Mainline system." South Bow, which was spun off last year from TC Energy, is a smaller company and is unlikely to have the capacity for such an undertaking, Masson said. Trans Mountain — a Crown corporation — delivered its expansion last year at a massively higher cost than when it was first proposed. "So, not easy to see that happening unless the federal government says, 'We want you to do it, so do it,'" Masson said. As for other Canadian energy infrastructure players like Keyera Corp. and Pembina Pipeline Corp., a crude pipeline wouldn't be a fit as they're more geared toward natural gas, he added. "Their investors would be unhappy if they got into it because it's such a big project compared to the size of the company, and it's outside their core expertise." Another major obstacle is the federal government's tanker ban on the West Coast, which ultimately spelled the end of Northern Gateway. During the pitched debate over that defunct project, First Nations and environmental groups were vehemently opposed to crude oil tankers sailing along the rugged, island-dotted northern B.C. coast and raised alarm over the ecological damage that could result from a spill. Smith and industry players have been pushing Ottawa to lift the ban, but to date there's no sign the Liberal government will oblige. "This is simply not an area where we can have a pipeline," said Anna Barford, oceans campaigner with in Vancouver.
Yahoo
17-05-2025
- Business
- Yahoo
South Bow Corp (SOBO) Q1 2025 Earnings Call Highlights: Strong Start Despite Operational Challenges
Normalized EBITDA: $266 million for the first quarter. Quarterly Dividend: $0.50 per share, payable on July 15th. EBITDA Guidance: Reaffirmed at $1.01 billion for 2025. Contracted EBITDA: 90% contracted over the next 7 years. Net Debt to EBITDA Ratio: Expected to be approximately 4.8 times by the end of 2025. System Operating Factor: 98% in the first quarter. Keystone Contractual Commitments: 585,000 barrels per day. Warning! GuruFocus has detected 7 Warning Signs with SOBO. Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. South Bow Corp (NYSE:SOBO) reported a strong financial start to 2025 with a normalized EBITDA of $266 million in the first quarter. The company successfully maintained its debt metrics despite a volatile market backdrop. SOBO declared a quarterly dividend of $0.50 per share, demonstrating its commitment to returning value to shareholders. Approximately 90% of SOBO's EBITDA is contracted over the next 7 years, providing financial stability and reducing exposure to commodity price risks. The company has made significant progress on its Blackrod Connection Project, which is expected to contribute to future growth. SOBO experienced an incident at milepost 171 in North Dakota, which required a system-wide shutdown and pressure restrictions. The incident has led to limitations on transporting uncommitted or spot volumes on the Keystone system. There is uncertainty regarding the duration of pressure restrictions and the full financial impact of the incident. The company faces headwinds from additional pipeline egress capacity and potential tariff impacts, affecting uncontracted volumes. SOBO's leverage ratio is expected to increase modestly through 2025 as it advances its Blackrod Connection Project and completes spinoff activities. Q: Can you elaborate on the potential financial and operational impacts following the recent incident? A: Bevin Wirzba, President and CEO, emphasized that 90% of South Bow's EBITDA is contracted, minimizing risk to the base business. The company is working closely with regulators and has modeled various scenarios to assess potential impacts. The focus is on maintaining operations and adjusting maintenance activities as needed. Q: What measures are being taken to prevent future incidents and ensure pipeline integrity? A: Bevin Wirzba highlighted that pipeline integrity and safety are top priorities. South Bow has invested significantly in inline inspections and plans to conduct more tests. The company is evaluating new and historical data to enhance safety and reliability. Q: Regarding the pressure restrictions, how do they affect your ability to transport volumes, and what is the expected duration? A: Richard Prior, COO, stated that it's too early to predict the duration of pressure restrictions. The company is conducting a root cause failure analysis and expects to complete it by summer. South Bow aims to meet its contractual commitments of 585,000 barrels per day despite restrictions. Q: How does the incident affect South Bow's financial outlook and leverage ratio for 2025? A: Van Dafoe, CFO, confirmed that all costs related to the incident are expected to be covered by insurance or through variable tolls. The company's debt to EBITDA ratio for year-end remains unchanged at 4.8 times. Q: What is the outlook for uncommitted volumes and the potential for future growth? A: Bevin Wirzba noted that while there are headwinds due to additional egress capacity and tariff uncertainties, the base business remains strong. The company is optimistic about supply growth and expects contributions from the Blackrod project to support future EBITDA growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
