Trans Mountain re-started Construction on its Expansion Project in the Third Quarter and Expects to Finish the Year with Strong Operating Results and Progress on Construction.

Trans Mountain Corporation (TMC) today posted to its website the company’s financial statements and associated management report for the three and nine month periods ending September 30, 2019. The company’s financial results were also included in Canada Development Investment Corporation’s consolidated quarterly financial statements. 

TMC recorded net income of $20.2 million and Adjusted EBITDA of $47.3 million for the three months ended September 30, 2019 and net income of $107.3 million and Adjusted EBITDA of $145.1 million for the nine months ended September 30, 2019.  Total throughput on the pipeline for the nine-month period averaged approximately 315,000 barrels per day and throughput to Washington State on the Puget pipeline averaged approximately 202,000 barrels per day for the period.

“Trans Mountain’s third quarter marked the re-start of construction on the Expansion Project at our Burnaby and Westridge Terminals in B.C., mobilization in Alberta and significant progress towards getting construction underway more widely by the end of the year,” said Ian Anderson, President and CEO of Trans Mountain Corporation. “Third quarter performance built on the strong start to the year both operationally and financially. Our health and safety measures continued to outperform industry rates, a testament to the strong culture of safety responsibility within the organization.”

On July 19, 2019, the National Energy Board (now the Canada Energy Regulator) announced that the decisions and orders issued prior to the August 2018 Federal Court of Appeal decision, will remain valid unless they determine that relevant circumstances have materially changed. On August 22, 2019, construction on the Expansion Project resumed including the receiving and staging of materials. Capital expenditures on the Expansion Project are expected to total approximately $1.3 billion in 2019. Additional expenditures of approximately $80 million are expected on other capital projects down slightly from the June forecast of $85 million due to timing of projects.

See the full financial statements and management report documents here.

See Canada Development Investment Corporation’s Quarterly Report here.

Non-GAAP measures

We make use of certain financial measures that do not have a standardized meaning under U.S. GAAP because we believe they improve management’s ability to evaluate our operating performance and compare results between periods. These are known as non-GAAP measures and may not be similar to measures provided by other entities. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and equity AFUDC) is a non-GAAP measure we use to evaluate our operating performance absent the impact of financing decisions, non- cash depreciation and amortization, and non-cash equity AFUDC.

AFUDC (Allowance for Funds Used During Construction) is an amount recognized by rate-regulated entities to reflect a return on the equity and debt components of capital invested in construction work in progress.

Comparable measures

This Report reflects financial results for the three and nine-month periods ending September 30, 2019. As TMC was incorporated on May 28, 2018 and acquired the Trans Mountain Entities on August 31, 2018, comparable prior year figures are not available.