Trans Mountain Corporation (“TMC”) today released the company’s financial statements and associated management report for the three-month period ending March 31, 2023. The company’s financial results were also included in Canada Development Investment Corporation’s consolidated quarterly financial statements.

TMC’s quarterly results demonstrate the company’s strong financial and operational performance, along with the continued and steady demand for its unique access to tidewater. The pipeline operated at full capacity with an average daily throughput for the three-month period for the mainline of approximately 337,000 barrels per day, with 49,000 barrels per day to Westridge Marine Terminal and 228,000 barrels per day to Washington state on the Puget pipeline.

Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) for the three-month period ended March 31, 2023, increased by $8.0 million to $50.1 million, as compared to $42.1 million in the same period of the prior year. The increase in Adjusted EBITDA for the three months ended March 31, 2023, as compared to the same period in the prior year, is mainly due to increased revenue on the Puget line, due to higher throughput and a weaker Canadian dollar.

As of March 31, 2023, construction of the Trans Mountain Expansion Project (“the Project”) is approximately 82 per cent complete, with $21.5 billion in construction capital spending incurred plus $2.8 billion in financial carrying costs capitalized since the inception of the Project.

Trans Mountain anticipates mechanical completion of the Project to occur at the end of 2023 with commercial service expected to occur in the first quarter of 2024. The company’s projected Adjusted EBITDA is expected to be approximately $2.4 billion in the first full year of the expanded assets operation and expected to grow annually thereafter. These projections are underpinned by long-term contractual commitments for 80 per cent of the system’s 890,000 barrels a day of capacity and expected utilization of uncontracted capacity of the system once in service.

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.